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Question 43 of 75 In a federally declared disaster area, if a claim for reimbursement exists and there's a reasonable prospect of recovery, the casualty O will still be reported in the year the disaster took place O will not be reported until the reimbursement claim is determined with reasonable certainty O will be reported in the year immediately following the year the claim is determined with reasonable certainty will either be reported in the year of the disaster or on the tax return for the year before the disaster took place. Mark for follow up Question 44 of 75. The identifiable event resulting in complete or partial destruction of property allowing a casualty loss could be described as any of the following EXCEPT O Sudden Unexpected O Unusual O Progressive deterioration. Mark for follow up Question 46 of 75. Which of the following is NOT an advantage of a C corporation? It is easier to raise capital by selling stocks. O Shareholders are only liable up to the amount of their investments O Shareholders acquire ownership through their investment The corporation only pays taxes on dividends and distributions Mark for follow up Question 47 of 75. If a married couple decides to run a business together and file jointly, they will be able to file taxes as all of the following types of business entities EXCEPT: O Partnership Os corporation O Qualified joint venture. O Limited liability company (LLC). Mark for follow up Question 48 of 75. Individual shareholders of Subchapter S corporations will meet the material participation standards if during the tax year they O Participated in the activity for more than 80 hours during the tax year Materially participated in at least one-half of all the activities performed by individuals (including non-owners) O Participated in all significant participation activities (including activities outside the corporation) for more than 200 hours. O Participated in business activities for more than 100 hours during the tax year and the participation was not less than the activity of any other individuals during the tax year, Mark for follow up Question 52 of 75 Which of the following statements is TRUE regarding the Section 199A qualified business income deduction for rental real estate owners? If the taxpayer does not quality for the safe harbor election, they will not be able to take the deduction The rental enterprise safe harbor election will be beneficial for all taxpayers even if the rental generates a netloss for the year O Both commercial and residential real estate may be part of the same rental real estate enterprise Our the taxpayer does not make the state harbor election, they may be eligible to claim the deduction based on the facts and circumstances of the rental activity Mark for follow up Question 53 of 75. Latanya rented her home for 14 days and made $75.000 of rental income through an online rental platform. The platform sent Latanya a Form 1000.K. Payment Card and Third Party Network Transactio reporting the $75,000 in payments she received. How will this situation be reported to the IRS? O write a letter to the IRS seeking proval to exclude the income Report the income on schedule E and attach a statement indicating it's not taxable O Report the income on Schedule 1. Ine O Report the income on Schedule 1, Ine 8 and attach a statement indicating it's not taxatie. Mark for follow up Question 54 of 75 Which of the following sources of rental income will be considered passive? O A bed and breakfast where the taxpayer provides personal care oms, daily cleaning services, and breakfast A single family home where the taxpayer makes management decisions regarding tenants and expenses O A single family home where the taxpayer purchased and renovated the property with the intention of making a quick profit A vehicle where the taxpayers provides no personal services and does not participate in the activity Mark for follow up Question 57 of 75. Gary has a rental house that was rented beginning January 1 in the current tax year. On January 1, the tenant paid Gary a $1,200 security deposit plus 505 rent for January and so rent for the last month, whenever that occurs. The tenant timely paid the 5950 monthly rent each of the remaining eleven months. How much rental income will Gary report for the current year? O $11.400 O $12,350 O $12,600 O $13,550 Mark for follow up Question 58 of 75. Mike renovated his rental home and has the following expenditures: $1.200 for removal and replacement of drywall, $500 for painting the drywall 5000 for an electrician to run cable and replace light futures $150 for light bulbs, and $13,000 to replace all the tile floors. How much of the renovation will be considered an improvement if no special election is made? O $13,000 O $14,200 O $14,800 O $15,450 Mark for follow up Question 63 of 75. Which of the following statements about basis is TRUE? O Bonus/special depreciation decreases basis Basis is not impacted by casualty losses O Basis is not impacted by the Section 170 deduction O Depreciation can decrease basis below zero. Mark for folow up Question 64 of 75. In January 2010, Ryan purchased a rental house for $110,000 which he immediately placed in service. The purchase price included 510,000 for the land in August of 2019, he said the house to the tenant How much depreciation may he deduct in 2019? O $1,364 O $2,273 O $3.485 O $3,630 Mark for follow up Question 65 of 75. Nonresidential real property in the U.S. (such as office buildings, factories, and workshops placed in service on or after May 13, 1990, is depreciated using The straight-line method over 15 years The straight line method over 30 years. O A 150declining basis method over 31.5 years O A 150% declining basis method over 30 years. Mark for follow up Question 68 of 75. All of the following are modified accelerated cost recovery system (MACRS) depreciation conventions EXCEPT: O Mid-month convention O Mid-quarter convention O Mid-year convention Half-year convention Mark for follow up Question 69 of 75. The alternative straight-line method of depreciation is mandatory when The asset is listed property not used exclusively for business O The 200% declining balance method calculates a larger depreciation deduction O Special bonus depreciation is taken The asset is listed property and used 50% or less for business, Mark for follow up Question 70 of 75 Listed property includes all the following EXCEPT O Computers and related peripheral equipment placed in service prior to 2018 O Passenger automobiles weighing 6,000 pounds or less O Property used for entertainment, recreation or amusement Qualified nonpersonal use vehicles Mark for low up Question 72 of 75. Nonresidential real property placed in service after 1986 and before May 13, 1993, is depreciated using The straight-line method over 31.5 years. The straight-line method over 39 years. O A 150% declining basis method over 31.5 years. O A 150% declining basis method over 39 years. Mark for follow up Question 75 of 75. Which of the following would cause a nonstatutory stock option to be taxable upon grant? The option is granted to a self-employed, independent contractor rather than an employee. The option has restrictions impacting its value, and the employee is not vested. The value of the option was readily determinable at the time of grant. The value of the underlying stock was readily determinable at the time of grant

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