ACE 346 Exam 2 Polling Questions

All of the following are correct about boot property in a like kind exchange, except:

boot received is not taxable

All of the following are qualified adoption expenses, except:

costs associated with adopting a child of the taxpayers spouse

Most assets in the 3, 5 7 and 10 year property class use which method of depreciation?

double declining balance

If a debt is written off (deducted) and later payment is received, the amount received is non taxable.

false

Losses from one publicly traded partnership can be deducted against profits from another publicly traded partnership.

false

There is a $100 amount that is not deductible for business casualty losses

false

Which of the following is not a deductible tax expense on Schedule A?

federal income taxes

To be considered for long term capital gain treatment an asset must be held;

more than 12 months

All of the following are correct regarding the section 179 expense deduction, except

real property is eligible for the section 179 deduction

Which of the following is an example of a passive activity

rental activity

A tax credit is a dollar for dollar reduction in actual tax owned

true

Assets in the 7 year property class that use MACRS use a half year convention to calculate depreciation in the first year.

true

For section 1035 tax deferral to apply to an insurance contract both policies must insure the life of the same person.

true

If a taxpayer forgets to deduct depreciation on an asset, the basis of the asset is reduced for the allowable depreciation that could have been claimed.

true

In order to claim the child tax credit the taxpayer must be able to claim the qualifying child as a dependent

true

Long term capital losses may be netted with short term capital gains.

true

The lifetime learning credit is available for graduate school tuition

true

The limitation on deductible acquisition indebtedness for a married couple for 2017 is:

1,000,000

To be considered a qualifying child for the child tax credit the taxpayer must be younger than what age.

17

How many years during the 5 year period leading up to the sale of a taxpayers residence must the taxpayer actually own and use it as their principal residence.

2 years

The active participation exception for passive activities allows what maximum amount of deduction in the current year, assuming the taxpayer does not have an AGI phaseout.

25,000

The limitation for a cash contribution to a public charity for 2017 is

50% of agi

For 2017, what is the maximum amount a business may expense under code section 179 for qualified property?

500,000

For a married taxpayer the threshold for foreign taxes paid before needing to file form 1116 is:

600

The period of time available to amend a return for deducting a loss from a worthless corporate security is

7 years

For 2017 the floor applicable to medical expense deductions is:

7.5% of agi

To be considered materially participating in real estate activities the taxpayer must perform how many hours of service during the year in real property trades or business?

750 hours

Which of the following is true regarding like kind exchanges (Section 1031) for 2017.

A rental property can be exchanged tax deferred for a commercial building

Which of the following is a qualifying expense for the dependent care credit?

Day care services for the taxpayers 7 year old dependent child

All of the following are true of section 1231 assets, except:

Gains are treated as short term capital gain

All of the following are true of passive losses, except:

Passive losses are always deductible currently.

Which of the following assets is eligible for a cost recovery deduction?

Tractor used by a farmer

All of the following types of income are subject to the unearned income medicare contribution tax, except.

Business income

All of the following expenses are allowed for the American Opportunity credit, except:

Room and board