Test Bank For Income Tax Fundamentals 2017 35th Edition by Gerald E. Whittenburg

‘’How can I study for this course without feeling lost? In case you are wondering this, we have the perfect answer for you. The Aces Income Tax Fundamentals Test Bank.’’ It is common for students to get overwhelmed with the amount of material that they are required to learn. Especially if one does not understand the purpose behind many concepts. Certainly, Gerald E. Whittenburg’s book, “2017 35th Edition of Income Tax Fundamentals” serves its purpose well and provides quite a lot of information, although, we can all agree sometimes— it just doesn’t cut it. However, our test bank will be able to assist you in many ways.

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Restrained in an exam room, where you feel the pressure and suddenly forget everything or chords start to blend into gibberish. This is quite a common feeling before exams. You might want to consider reading this to find out how to level the playing field. The test bank comprises intricate details that aid in practicing exactly the areas that are required to be practiced – concepts and calculations. As a whole, it will cover every aspect we will need. To be depicted as the mini ball – the quiz will be your ideal pocket-sized prescription.

How Does A Test Bank Function ‘for Me’?

When preparing for examinations one will come across pesky questions which just wouldn’t allow one to focus. In other words, some questions just put a roadblock to your preparation. To unlock it, one might want to reconsider their textbook study techniques, as performing it might just take them hours. However, per our test bank, A lot of similar questions come with dissected answers which cover the explanation part in depth. A better alternative would be to use the test bank to better understand: * What one is good at and What requires improvement.

• Practice different question formats: You will encounter different formats of tests such as MCQ, true or false, and fill in the blanks, same as in your real exam.
• Remember that with each practice you will deepen your confidence: As you go along practicing, the higher the confidence you obtain regarding your exam.

Key Topics Covered in Our Test Bank

We address all the important concepts that you should know during your Income Tax Fundamentals exam, including:

• General Understanding of Taxation
  • What is Taxation? Expect questions regarding taxes and taxation systems, types and uses of tax among other relevant issues.
  • Legal and Administrative Basis of Taxation: You will be introduced to the federal government, the IRS tax legislation, and the institution services responsible for tax collection.
• Tax on Individual Earnings
  • Income and Expenses Reimbursement: You will be able to compute taxable income and what kind of common deductions one may avail themselves of.
  • Tax Credits: Expect to encounter in the exams some questions about how to obtain credits to lower your tax amounts.
• Tax on Commercial Earnings:
  • Earning of Individual Owners and Partnership Organization: You shall now see how taxes are computed for sole proprietorship and partnerships.
  • Legal Entities: Expect practice on the various forms of corporations and their respective taxation.
• Property Taxation
  • Real Estate and Personal Property: You learn the processes in which taxes are imposed on real estate and personal possessions.
• Sales and Use Tax
  • Sales Tax and Use Tax: You will view questions that concern the functioning of sales tax and the applicability of use tax.
• Other Taxes
  • Estate and Gift Taxes: You will practice taxation of property received through inheritance and property received as gifts.
  • Payroll Taxes: You will be exposed to the different categories of taxation on people’s earnings or paychecks which employers and employees are obligated to pay.

Benefits of Using Our Test Bank

• Improved Understanding: The retake practice questions in our test bank enable you to reinforce class concepts.
• Higher Exam Scores: Practice! Practice! Practice! Our test bank builds your confidence in the face of the unknown in examinations.
• Time-Saving: Evidently, examining or checking with our test bank saves time and identifies areas where more study is necessary.
• Cost-Effective: In comparison with other study aids, our test bank issues at a very cheap price.

Summary

Our test bank is decisive in your effort to pass Income Tax Fundamentals. The comprehensive nature of the concepts covered will ensure that you are adequately prepared for examinations and that you have understood the topic of taxation very well.

Test Bank For Income Tax Fundamentals 2017 35th Edition by Gerald E. Whittenburg

Chapter 4 Business Income and Expenses Part II

1. If a residence is rented for 15 days or more and is used for personal purposes for not more than 14 days or 10 percent of the days rented, whichever is greater, no allocation of expenses is required and the taxpayer may claim a deduction for the full amount of the expenses.

  a.  True

  b.  False

ANSWER:   False

RATIONALE:   If a residence is primarily used as a rental, the expenses must still be allocated between personal and rental days.

POINTS:   1

DIFFICULTY:   Challenging

QUESTION TYPE:   True / False

HAS VARIABLES:   False

LEARNING OBJECTIVES:   ITF.WABG.16.LO:4-01 – LO:4-01

NATIONAL STANDARDS:   United States – BUSPROG: Analytic

STATE STANDARDS:   United States – AK – AICPA: FN-Reporting

KEYWORDS:   Bloom’s: Knowledge

2. Net losses on the rental of vacation homes are limited to 15 percent of total gross income.

  a.  True

  b.  False

ANSWER:   False

RATIONALE:   Expenses attributable to vacation homes used primarily as personal residences are limited to the income generated from the rental of the property.

POINTS:   1

DIFFICULTY:   Easy

QUESTION TYPE:   True / False

HAS VARIABLES:   False

LEARNING OBJECTIVES:   ITF.WABG.16.LO:4-01 – LO:4-01

NATIONAL STANDARDS:   United States – BUSPROG: Analytic

STATE STANDARDS:   United States – AK – AICPA: FN-Reporting

KEYWORDS:   Bloom’s: Knowledge

3. In most cases, an individual taxpayer reports rental income and the related expenses on Schedule E.

  a.  True

  b.  False

ANSWER:   True

POINTS:   1

DIFFICULTY:   Easy

QUESTION TYPE:   True / False

HAS VARIABLES:   False

LEARNING OBJECTIVES:   ITF.WABG.16.LO:4-01 – LO:4-01

NATIONAL STANDARDS:   United States – BUSPROG: Analytic

STATE STANDARDS:   United States – AK – AICPA: FN-Reporting

KEYWORDS:   Bloom’s: Knowledge

4. When a residence is rented for less than 15 days during the year, the rental income is excluded from gross income.

  a.  True

  b.  False

ANSWER:   True

POINTS:   1

DIFFICULTY:   Easy

QUESTION TYPE:   True / False

HAS VARIABLES:   False

LEARNING OBJECTIVES:   ITF.WABG.16.LO:4-01 – LO:4-01

NATIONAL STANDARDS:   United States – BUSPROG: Analytic

STATE STANDARDS:   United States – AK – AICPA: FN-Reporting

KEYWORDS:   Bloom’s: Knowledge

5. Lester rents his vacation home for 6 months and lives in the home during the other 6 months of 2016. The gross rental income from the home is $4,500. For the entire year, real estate taxes are $800, interest is $3,000, utilities and maintenance expenses are $2,200, and depreciation expense on the entire home would be $4,000. What is Lester’s allowable net loss from renting his vacation home?

  a.  $5,500 loss

  b.  $3,000 loss

  c.  $500 loss

  d.  $250 loss

  e.  None of the above

ANSWER:   e

RATIONALE:   Lester’s calculated loss is:

​

 Gross income  $4,500

 Real estate taxes (50% x $800)  (400)

 Interest (50% x $3,000) (1,500)

Utilities (50% x $2,200)   (1,100)

Depreciation (50% x $4,000)  (2,000) 

 Net rental loss ($500)