d.
A nonresident alien.
e.
A married individual filing a separate return and your spouse itemizes his deductions.
ANSWER:
b
75. Brian is 60 years old, single, and legally blind. Brian supports his father, who is 88 years old and blind, by paying the rent and other costs of his father’s residence. What is the total standard deduction amount that Brian should claim on his 2020 tax return?
a.
$18,650
b.
$24,800
c.
$20,300
d.
$20,000
e.
None of these
ANSWER:
c
76. Clay purchased Elm Corporation stock 20 years ago for $10,000. In the current year, he sells the stock for $29,000. What is Clay's gain or loss?
a.
$19,000 long-term
b.
$19,000 short-term
c.
$19,000 ordinary
d.
$3,000, with the excess carried forward
e.
No gain or loss is recognized on this transaction
ANSWER:
a
77. Alexis has a long-term capital loss of $13,000 on the sale of stock in the current year. She has no other capital gains or losses for the year. Her taxable income without this transaction is $60,000. What is her current year taxable income considering this capital loss?
a.
$47,000
b.
$54,000
c.
$57,000
d.
$70,000
e.
Some other amount
ANSWER:
c
78. Which of the following is not a capital asset?
a.
Inventory
b.
Stocks
c.
A personal automobile
d.
Gold
e.
Land
ANSWER:
a
79. Bob owns a rental property that he bought several years ago for $250,000. He has taken depreciation on the house of $35,000 since buying it. He sells it in 2020 for $290,000. His selling expenses are $12,000 for the year. What is Bob’s realized gain on the sale?
a.
$28,000
b.
$53,000
c.
$63,000
d.
$75,000
e.
None of these
ANSWER:
c
80. The IRS:
a.
requires official tax forms be obtained at the local IRS office.
b.
links to the H & R Block Web site.
c.
provides information on how to choose a stock.
d.
has an app for mobile phones.
ANSWER:
d
81. Internet users can go to http://www.irs.gov/ and:
a.
Download tax forms and publications.
b.
Find links to other useful IRS pages.
c.
Use a search function to find forms and publications.
d.
All of these.
ANSWER:
d
82. Electronic filing (e-filing):
a.
Reduces the chances that the IRS will make mistakes when inputting tax return information.
b.
Generally results in a slower refund.
c.
Can be done only by telephone.
d.
Requires the services of a professional.
ANSWER:
a
83. Electronically filed tax returns:
a.
May not be transmitted from a taxpayer’s home computer.
b.
Constitute less than 50 percent of the returns filed with the IRS.
c.
Have error rates similar to paper returns.
d.
Offer faster refunds than paper returns.
ANSWER:
d
Matching
Match the letter of the filing status to the taxpayers below. Items may be used more than once.
a.
Single
b.
Married filing a joint return
c.
Married filing separate returns
d.
Head of household