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LET’S PRACTICE!
#1. Which of the following is not included in gross income?
#2. A taxpayer sells a capital asset held for 18 months at a gain. How is the gain classified?
#3. A calendar-year corporation uses the cash method of accounting. When is income considered earned?
#4. Which retirement plan allows an employer to deduct contributions up to 25% of compensation?
#5. Section 179 deduction applies to:
#6. The standard deduction for a single filer in 2024 is closest to:
#7. A trust distributes income to a beneficiary. The trust reports:
#8. A taxpayer engages in a business for profit—or else it’s hobby. The test applied is:
#9. Child tax credit for a qualifying child under age 17 in 2024 is:
#10. A self-employed taxpayer must pay self-employment tax if net earnings exceed:
#11. Depreciation period for residential rental property:
#12. A partnership’s built-in gain nonrecognition transfer occurs when contributed property has:
#13. What is the required percentage threshold for a related party in underpayment penalty?
#14. Which of the following is NOT eligible for a child and dependent care credit?
#15. A Schedule C taxpayer can deduct health insurance premiums if:
#16. Under the AMT rules, which preference item is added back?
#17. Excise tax on tanning services is:
#18. Tax treatment of Roth 401(k) distributions:
#19. Which of the following is a nonrefundable credit?
#20. A taxpayer fails to file a required partnership return. Penalty per month per partner is:
#21. Under MACRS, a 5-year property class asset like a car uses:
#22. For QBI (Qualified Business Income), a specified service trade or business includes:
#23. Which statement qualifies as reasonable cause for penalty waiver?
#24. The wash-sale rule disallows loss on stock if you buy substantially identical stock within:
#25. Annual exclusion for gifts between spouses (U.S. citizen spouse) is:
#26. A taxpayer received a state income tax refund of $800 for a prior year. It must be included in income if:
#27. Which of the following is deductible as a business expense?
#28. A tax lien gives the IRS legal claim to:
#29. Which of the following is considered a capital asset?
#30. An S corporation files its tax return using:
#31. When is a taxpayer required to file a tax return?
#32. An installment sale is reported on:
#33. Which of these credits is partially refundable?
#34. A taxpayer bought equipment for $50,000, claimed $30,000 in depreciation, and sold it for $35,000. What is the gain?
#35. The tax benefit rule requires prior deductions to be included in income when:
#36. What is the maximum amount of capital loss that can be deducted against ordinary income each year?
#37. Which type of audit is the most comprehensive and conducted at the taxpayer’s location?
#38. Form 4868 is used to:
#39. An ERO must retain a signed Form 8879 for how many years?
#40. Which expense is not allowed for the medical expense deduction?
#41. What IRS notice indicates a CP2000 underreporter inquiry?
#42. What is the threshold for mandatory e-filing of W-2s starting in 2024?
#43. What is the statute of limitations for claiming a refund?
#44. Which of the following is subject to backup withholding?
#45. The penalty for willful failure to file an FBAR can be:
#46. What form is used to report additional taxes on IRAs or retirement plans?
#47. Which of the following is not a test for dependency?
#48. Which form is used to apply for an EIN?
#49. Who must file Form 720?
#50. Which income is not subject to self-employment tax?
