BUSINESS

Question 16

  1. Net long-term capital gains may be taxed at a lower rate than ordinary gains.

    True
    False

0.5 points  

Question 17

  1. Corporate taxpayers carry unused capital losses, short-term or long-term, back 3 years and forward 5 years.

    True
    False

0.5 points  

Question 18

  1. If Section 1231 losses exceed Section 1231 gains, the excess is treated as a short-term capital loss for an individual.

    True
    False

0.5 points  

Question 19

  1. If depreciation taken on property subject to Section 1245 is more than the gain recognized from its sale, the entire depreciation is recaptured as ordinary income.

    True
    False

0.5 points  

Question 20

  1. When Section 1239 (relating to the sale of depreciable property between related taxpayers) applies, it results in the entire gain being treated as Section 1231 gain.

    True
    False

0.5 points  

Question 21

  1. John performs services for Paul.  Which, if any, of the following factors would help to verify John’s status as an independent contractor (rather than as an employee):

    a.a.       John furnishes his own tools.

    b.
    b.       Paul specifies John’s work schedule.

    c.
    c.       John is paid by the hour rather than for the job performed.

    d.
    d.       Paul tells John what to do and supervises his work.

    e.
    e.       None of the above.

1 points  

Question 22

  1. Which, if any, of the characteristics listed below do not correctly reflect the concept of tax home:

    a.a.       The taxpayer need not be away from home for a 24-hour period to meet the “overnight” test.

    b.
    b.       The tax home will change if a temporary assignment elsewhere exceeds one year.
    c.
    c.       It is possible for some taxpayers never to be away from their tax home (i.e., the tax home follows them).

    d.
    d.       The tax home is the area where the taxpayer derives the principal source of income.

    e.
    e.       All of the above are correct.

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