Reference no: EM132594214

Question 1.An S corporation shareholder may carry forward unallowed loss that exceeds the basis of their stock (increased by any loans the shareholder made to the corporation) for what period of time?
Ten years.
Indefinitely..... ????
20 years.

Question 2.Which of the following statements is TRUE if a seller realized $21,000 in gain on the original sale of their principal residence, and repossessed and resold the property 14 months later?
A. No gain is recognized on the repossession, and the repossession and original sale are reported as separate transactions.
B. No gain is recognized on the repossession, and the repossession and original sale are treated as a single transaction.

Question 3.A taxpayer sold a residential rental building for a gain of $15,000. The building was purchased and placed in service in March 2012. (The sale of land is not included in this question.) No other property was sold during the current tax year. The depreciation allowed or allowable was $10,635. What is the amount and nature of the gain or loss?
A. $4,365 gain taxed as a long-term capital gain and $10,635 gain taxed at a maximum of 25%... ???
B. $4,365 gain taxed at a maximum of 25% and $10,635 gain taxed as a long-term capital gain.
C. $15,000 gain taxed as a long-term capital gain.
D. $15,000 gain taxed at a maximum of 25%.

Question 4.Which of the following items would NOT be adjusted when reconciling a corporation's book income with tax return income?
A. Charitable contributions made by the corporation...???
B. Tax-exempt interest.
C. Loans to shareholders.