H&R Block Income Tax Course Latest Update 2024-2025 900 Questions and 100% Verified Correct Answers Guaranteed A+
$2,000,000 Limitation - CORRECT ANSWER: If the cost of all property eligible for the 179 deduction during the year exceeds $2,000,000, the deduction is reduced dollar for dollar by the amount in excess of $2,000,000.
2 Requirements for Moving Expenses - CORRECT ANSWER: (1) Distance
(2) Work time
179 Expense Deduction - CORRECT ANSWER: An election to expense up to $500,000
of the cost of certain property in the year it is placed in service instead of recovering that amount under MACRS.
179 Restrictions - CORRECT ANSWER: $2,000,000 Limitation; Business Income
Limitation
401(k) Plan - CORRECT ANSWER: Deferred compensation plan available through a
wide range of employers. Contributions to a 401(k) plan are tax deferred to the employee. Distributions from the plan are taxed as ordinary income to the recipient when received.
403(b) Plan - CORRECT ANSWER: Deferred compensation plan available to
employees of many public educational institutions and non-profit organizations.
403(b) Plans - CORRECT ANSWER: A tax-advantaged retirement savings plan
available for employees of: public education organizations; some non-profit
organizations; cooperative hospital service organizations.
457 Plan - CORRECT ANSWER: Deferred compensation plan available to employees
of many government entities.
A 1988 US Series EE Bond, cashed in this year. Election to report interest annually has
not been made. Taxable? - CORRECT ANSWER: Yes
Accelerated Cost Recovery System (ACRS) - CORRECT ANSWER: The system of
depreciation in effect from 1981 through 1986.
Acquisition Debt - CORRECT ANSWER: Debt incurred to acquire, construct, or improve the taxpayer's principal or secondary residence.
Active Income and Losses - CORRECT ANSWER: Those for which a taxpayer performs
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Adjusted Basis - CORRECT ANSWER: The cost or other original basis of property
reduced by adjustments such as depreciation allowed or allowable and increased by capital improvements and other adjustments.
Adjusted Basis - CORRECT ANSWER: The cost or other original basis of property
reduced by adjustments such as depreciation allowed or allowable and increased by capital improvements and other adjustments.
Adjusted Basis - CORRECT ANSWER: The cost or other original basis of property
reduced by adjustments such as depreciation allowed or allowable and increased by capital improvements and other adjustments.
Adjusted Basis - CORRECT ANSWER: The original basis PLUS the cost of
improvements; the cost of restoration after a casualty; assessments for local improvements MINUS any discount, rebate, or reimbursement of any portion of the purchase price; insurance reimbursements for property damages; the amount of casualty or other losses deducted on the return for any year; depletion or depreciation allowed or allowable; any gain that is not reported in the year realized.
Adjusted Basis - CORRECT ANSWER: Usually the original cost plus the cost of capital improvements and the cost of restoring the property, minus any reimbursement or deduction of previous casualty losses and depreciation taken.
Adjusted Gross Income - CORRECT ANSWER: Equals gross income less reductions
that are allowable, regardless of whether personal deductions are itemized.
Adoption Credit - CORRECT ANSWER: A nonrefundable credit for qualified adoption
expenses incurred for each eligible child. The credit cannot exceed $13,360 per child.The limit is a per-child limit, not an annual limit, and can be carried forward for up to five years or until used.
Age of a Qualifying Child - CORRECT ANSWER: Under 19 at the end of the year and
younger than the taxpayer; A full-time student under 24 at the end of the year and younger than the taxpayer; Permanently and totally disabled.
Age Test for QC - CORRECT ANSWER: (1) Under 19 and younger than taxpayer. (2)
Full-time student under 24 and younger than taxpayer. (3) Permanently and totally disabled.
AGI Limitation of Most Miscellaneous Itemized Deductions - CORRECT ANSWER: 2%
Alimony and separate maintenance payments included in gross income? - CORRECT
ANSWER: Yes
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Alimony Payments - CORRECT ANSWER: Payments made by one spouse to the other
spouse or former spouse under a written separation or divorce instrument.
Alternative Straight-Line Depreciation System - CORRECT ANSWER: A MACRS
system of depreciation using the straight-line method over an alternative recovery period.
Amended Return - CORRECT ANSWER: A tax return filed on Form 1040X after the
original return has been filed.
American Opportunity Credit (AOC) - CORRECT ANSWER: Credit for qualifying
education expenses available for tax years 2009 through 2012. The AOC may be partially refundable.
Amount of Adoption Credit - CORRECT ANSWER: Up to $13,360 per eligible child.
Amount of Child Tax Credit - CORRECT ANSWER: $1,000 per child.
Amount of the Homebuyer Credit - CORRECT ANSWER: The smaller of $8,000 or 10%
of the purchase price of the home.
Amount of the Lifetime Learning Credit - CORRECT ANSWER: 20% of the total
qualified expenses for all eligible students on the tax return.
Amount Realized - CORRECT ANSWER: The amount of cash received by the seller
from the buyer PLUS the fair market value of any obligations, property, or services received; the face value of any of the seller's liabilities the purchaser assumes as part of the transaction.
Annuity - CORRECT ANSWER: A series of payments under a contract made at regular
intervals over a period of more than one year.
Are funeral expenses deductible? - CORRECT ANSWER: No
Are gambling losses deductible? - CORRECT ANSWER: Only to the extent of winnings reported as income.
Are gambling winnings taxable? - CORRECT ANSWER: Yes
Are tax preparation fees deductible? - CORRECT ANSWER: Yes
Asset - CORRECT ANSWER: An item of useful or valuable property.
At-Risk Rules - CORRECT ANSWER: Special rules limiting the taxpayer's deductible business, partnership, S corporation, or real estate loss to cash invested plus debt he is legally obligated to pay and the adjusted basis of any property contributed. 3 / 4
Bad Debts - CORRECT ANSWER: Customer accounts receivable and notes receivable
determined to be uncollectible.
Basis - CORRECT ANSWER: A measure of the taxpayer's investment in property for
tax purposes.
Beneficiary - CORRECT ANSWER: The owner or recipient of funds in an account, such as an IRA, or from an insurance policy or will.
Business Assets - CORRECT ANSWER: Assets used in a trade or business or used to
produce rent or royalty income.
Business Assets - CORRECT ANSWER: Assets used in a trade or business or used to
produce rental or royalty income.
Business Income Limitation - CORRECT ANSWER: The total amount expensed cannot
exceed the taxpayer's business income from all trades or businesses.
Business-Use Property - CORRECT ANSWER: Property used for the production of
income.
Cafeteria Plan - CORRECT ANSWER: A plan wherein an employer offers a choice of
nontaxable fringe benefits from which participating employers may select. The plan may be funded with employer contributions, employee contributions, or a combination of both.
Calculating the AOC - CORRECT ANSWER: The amount of the AOC is the sum of: 100% of the first $2,000 of qualified education expenses paid for the eligible student; 25% of the next $2,000 of qualified education expenses.
Camille (16) was claimed by her mother, Ida, and her father, Walter. Camille lived with each parent an equal amount of time in 2011. Ida's AGI was $44,255. Walter's AGI was
$47,525. Who can claim Camille's dependency exemption? - CORRECT ANSWER:
Walter
Can a taxpayer who may be claimed by another person on their return claim a
dependent? - CORRECT ANSWER: No
Can stop-smoking programs be included as a medical expense? - CORRECT
ANSWER: Yes
Can the 1040X be e-filed? - CORRECT ANSWER: No.
Can weight loss programs and surgery be included as a medical expense? - CORRECT
ANSWER: Yes
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