ACC/307 ACC307 ACC 307 WEEK 11 QUIZ

ACC 307 WEEK 11 QUIZ

1.

TF Qu. 38 A self-employed taxpayer reports home office...

A self-employed taxpayer reports home office expenses as for AGI deductions while employees report home office expenses as from AGI deductions.

2.

TF Qu. 4 A taxpayer may be required to pay tax on a g...

A taxpayer may be required to pay tax on a gain the taxpayer realizes when she sells her principal residence.

3.

TF Qu. 31 When allocating expenses of a vacation home ...

When allocating expenses of a vacation home between personal use and rental use, the amount of depreciation expense allocated to the rental use is based on the number of rental days over rental days plus personal use days.

4.

MC Qu. 77 Which of the following statements regarding ...

Which of the following statements regarding personal and/or rental use of a home is false?

A day for which an unrelated non-owner stays in the home under a vacation exchange arrangement is considered to be a personal use day.

A day for which a taxpayer rents a home to an unrelated party for less than the property's fair market value is considered to be a personal use day.

A day for which the home is available for rent but is not occupied does not count as a personal use or a rental use day.

5.

MC Qu. 45 Which of the following statements regarding ...

Which of the following statements regarding the exclusion of gain on the sale of a principal residence is correct?

A taxpayer may not exclude gain if the taxpayer is renting the residence at the time of the sale.

A taxpayer must be living in a residence at the time it is sold to qualify for the exclusion.

6.

MC Qu. 57 Which of the following best describes a qual...

Which of the following best describes a qualified residence for purposes of determining a taxpayer's deductible home mortgage interest expense?

The taxpayer's principal residence and one other residence (chosen by the taxpayer).

The taxpayer's principal residence and two other residences (chosen by the taxpayer).

Any two residences chosen by the taxpayer.

7.

MC Qu. 43 In order to be eligible to exclude gain on ...

In order to be eligible to exclude gain on the sale of a principal residence, the taxpayer must meet which of the following tests?

Ownership test.

Business use test.

Ownership and use test.

Use test.

Rental test.

8.

MC Qu. 74 Which of the following statements regarding ...

Which of the following statements regarding deductions for real property taxes is incorrect?

Taxpayers are not allowed to deduct payments made for neighborhood sidewalks.

A taxpayer is not allowed to deduct property taxes as the taxpayer makes monthly mortgage payments to an escrow account held by her mortgage company.

An individual deducts real property taxes on her principal residence as a for AGI deduction.

9.

MC Qu. 48 On February 1, 2015 Stephen (who is single) ...

On February 1, 2015 Stephen (who is single) sold his principal residence (home 1) at a $100,000 gain. He was able to exclude the entire gain on his 2015 tax return. Stephen purchased and moved into home 2 on the same day. Assuming Stephen lives in home 2 as his principal residence until he sells it, which of the following statements is true?

Under no circumstance will Stephen be allowed to exclude gain on home 2 if he sells home 2 in 2016.

In certain circumstances, Stephen may be able to exclude gain on home 2 even if he sells home 2 in 2015.

None of these is a true statement.

10.

MC Qu. 71 Which of the following statements regarding ...

Which of the following statements regarding the tax deductibility of points related to a home mortgage is correct?

Points paid in the form of prepaid interest on a refinance are deductible over the life of the loan.

Points paid in the form of prepaid interest on an original home loan are deductible over the life of the loan.

Points paid in the form of a loan origination fee on an original home loan are deductible over the life of the loan.