Reference no: EM132524172

Questions -

Q1. Santiago has a rental house which is rented at fair rental value all year. Santiago lives in Nevada but his rental house is located in Virginia. On occasion, the tenant pays expenses that Santiago would normally pay as the owner of the house. Which of the following expenses paid by the tenant would normally be income to the landlord?

a) Real estate taxes

b) Replacement of a broken window which was broken when a guest of the tenant threw a ball

c) Plumbing repair caused when the tenant's child flushed a small toy down the toilet

d) Carpet cleaning to remove a stain caused by the tenant's child

Q2. Carl has a new tenant whose lease began on December 1st and who paid the following:

First three month's rent $3,000 ($1,000 per month)

Security deposit $1,500 (to be returned at the time the tenant moves out)

Last month's rent $1,000

What amount of advance rent must Carl report as income?

a) $5,500

b) $4,000

c) $3,000

d) $1,000

Q3. Robert and Barbara's 17-year-old son, Mason, has significant investment income. Mason also has W-2 income from a part-time job. Mason is required to file Form 8615 in the completion of his tax return. Which of the items listed below must a tax preparer know to accurately complete Mason's tax return?

a) Robert and Barbara's dates of birth

b) Robert and Barbara's taxable income

c) Robert and Barbara's amount of earned income

d) The names of Robert and Barbara's other dependents