General MCQ for Taxation

1. Which of the following is not allowed as a deductible moving expense?

2. Which of the following is correct with respect to depreciation recapture when a property is used for trade or business?

3. 228 shares are bought on Jan 3, 2007. What is the earliest date on which the stock can be sold and the gain or loss qualifies as long term?

4. Under a partnership agreement, Abhi, a partner, is to receive 40% of the partnership's income. but not less than $15,000. The partnership's net income for 2007 was $30,000 before considering theminimum guaranteed amount. What amount can the partnership deduct as a guaranteed payment and what amount of income is Abhi required to report in her individual tax return?

5. Which of the following is not a requirement to claim to be the head of a household?

6. With respect to Simple Trusts, all the following statements are true except.

7. All of the following events except would cause an S Corporation to be disqualified from being an S corporation.

8. Which of the following cash basis items of the partnership must be prorated on a daily basis to determine each partner's share of partnership income or loss if any partner's interest in a partnership firm changes during the year?

9. In 2007, ABC Inc. had gross receipts of $45,300from the sale of videos, dividends of $32,500 from a domestic corporation in which ABC, Inc. owned 50% of the stock. and operating expenses of $75,000. What is the net operating loss of the ABC Inc. in 2007?

10. George could not f‌ile his tax return on April 15th as he was out of the country on an assignment. He can request for an extension of time to pay his taxes within 6 months of the due date by f‌iling Form 4868.

11. Which of the following is income from passive activity?

12. Mr.Brain died on July 18, 2007. His taxable estate is worth $900,000. By which date is the filing of Form 706. United States Estate Tax Return, due?

13. You operate a business and file your tax return on a calendar-year basis. You bought a f‌ire insurance policy on your building effective September 1, 2007, and paid a premium of $6000 for 2 years of coverage. How much can you deduct in your 2007 return?

14. Which of the following must you show to meet the directly related test for entertainment expenses?

15. Which of the following may be considered as alimony?

16. Which of the following is deductible as Medical Expenses?

17. The fringe benefits are not taxable except .

18. Which of the following are organizational costs?

19. Jasco Corporation ends its tax year on 31st March. When must they file their income tax return for the year ending March 31st, 2007?

20. Which of the following is not a true statement regarding bad business debts?

21. Which one of the following is not a timing difference?

22. A common kind/ common kinds of distributions by a corporation to its shareholders is / are

23. Which of the following will decrease the basis of the property?

24. Your AGI is $35400; you can deduct your medical expenses if they are more than