Reference no: EM132961219

Questions -

Q1) In 2020, Jimmy "Jerry Jones" Johnson is over 65 years of age and has no dependents. His only income was his salary of $220,500. During the year, he made disbursements of the type that qualify as total allowable itemized deductions of $13,290. What is his standard deduction for 2020?

1) $12,400

2) $13,850

3) $14,050

4) $14,450

5) None of these

Q2) Mr. and Mrs. Twig are both under 65 years of age and have no dependents. Their only income for the year was his salary of $45,500. During the year they made only a nominal amount of disbursements of the type that would qualify as itemized deductions. What is their standard deduction on a 2020 joint return?

1) $12,200

2) $18,650

3) $24,400

4) $24,800

5) None of these

Q3) In 2020, Bruce Bobbett, a 62-year-old, is the sole support of his aged parents. His father is 72 and is in good health. His mother is 70 and is blind. His parents live in his home. What are the total exemptions that Bruce can claim (please note that, in 2020, each exemption is worth a deduction of $0).

1) 1

2) 6

3) 4

4) 3

5) None of these

6) 2

Q4) The exclusion on the sale of a personal residence is $500,000 for taxpayers filing jointly and as single individuals.

1) True

2) False

Q5) Taxpayers that realize a loss on a like-kind exchange will immediately derive tax benefits associated with deducting the loss.

1) True

2) False

Q6) Ruth Rumsfeld inherited a home in 2016 that had a basis to her of $100,000. She moved into the inherited home and made it her new principal residence. She sold her former principal residence she had lived in for the past six years for $90,000, realizing a gain of $20,000. She must report the $20,000 gain because she did not reinvest the proceeds in her new principal residence.

1) True

2) False

Q7) If an exchange of property involves the assumption of a liability by the transferee it is treated like boot received by the transferee.

1) True

2) False