Income Tax Help

1. A characteristic of the statute of limitations is: a. There is a six-year statute of limitations on assessments of tax if a fraudulent return is filed. b. The same statute of limitations applies to tax refunds and deficiencies. c. A six-year statute of limitations applies if gross income is understated by more than 25%. d. A three-year statute of limitations applies to all tax returns, no matter what. 2. State income taxes can: a. Piggyback to the Federal version. b. Decouple from the Federal version. c. Apply to visiting nonresidents. d. Provide occasional amnesty programs. e. All of the above. 3. In terms of probability, which of the followi... click for more

Income Tax Homework help

16. Matt and Shanekwa, ages 45 and 44, respectively, file a joint tax return for 2005. They provided all of the support for their 24-year-old son, who had $2,500 of gross income. Their 23-year-old daughter, a full-time student until her graduation on June 14, 2005, earned $6,000, which was 45% of her total support during 2005. Her parents provided the remaining support. Matt and Shanekwa also provided total support for Shanekwa's father who is a citizen and life-long resident of Portugal. How many personal and dependency exemptions can Matt and Shanekwa claim on their 2005 income tax return? a. Two. b. Three. c. Four. d. Five. e. None of the above. 17. Dorothy purchased a cer... click for more

Income Tax Questions

36. Robyn rents her beach house for 60 days and uses it for personal use for 30 days during the year. The rental income is $6,000 and the expenses are as follows: Mortgage interest $9,000 Real estate taxes 3,000 Utilities 2,000 Maintenance 1,000 Insurance 500 Depreciation (rental part) 4,000 Using the IRS approach, total expenses that Robyn can deduct on her tax return associated with the beach house are: a. $0. b. $7,000. c. $8,000. d. $12,000. 37. On January 2, 2005, Fran acquires a business from Chuck. Among the assets purchased are the following intangibles: patent with a 12-year remaining life, a covenant not to compete for 10 years, and goodwill. Of the p... click for more

Tax Questions

51. Jermaine and Kesha are married, file a joint tax return, have AGI of $75,000, and have two children. Devona is beginning her freshman year at State University during Fall 2005, and Arethia is beginning her senior year at Northeast University during Fall 2005 after having completed her junior year during the spring of that year. Both Devona and Arethia are claimed as dependents on their parents’ tax return. Devona’s qualifying tuition expenses and fees total $3,500 for the fall semester, while Arethia’s qualifying tuition expenses and fees total $5,250 for each semester during 2005. Full payment is made for the tuition and related expenses for both children during each semester. The ... click for more

What is the definition of being self-employed? What distinguishes a self-employed individual from an employee? Why is this distinction important?

What is the definition of being self-employed? What distinguishes a self-employed individual from an employee? Why is this distinction important?