Tax: Chapter 5 Learn Smart
Terms in this set (9)
Sam traded a parcel of land for a tractor and a car. He had purchased the land five years earlier for $16,000. The market value of the car and the tractor is $20,000. What is the amount of gross income resulting from this transaction?
When an individual transfers property to another taxpayer during their life, w/o receiving or expecting to receive value in return, the property transferred is a(n) ________ and is __________ (taxable/nontaxable) to the person receiving the property.
Which of the following statements is correct concerning a gift?
A gift may be subject to "gift tax" which is paid by the person giving the gift.
Gross income means all income from ____________ ____________ ______________.
Whatever source derived
Mary has received the following income and fringe benefits during the current year: a $73,000 salary; $600 in employer-provided disability premiums; $5,000 in workers' compensation; $1,200 in corporate bond interest; a $23,000 car won on a game show; and a $1,200 health insurance reimbursement for medical expenses paid during the year. Which of these amounts should Mary include in her gross income?
$1,200 corporate bond interest
Which of the following choices describe exclusions and deferrals for tax purposes?
These provisions are the result of specific congressional action.
These provisions are narrowly defined.
These provisions are often granted in order to subsidize or encourage particular behaviors.
Which of the following types of cash receipts is not taxable to the recipient?
Gift from a friend
Up to 85% of ___________ _____________ benefits, in retirement, may be taxable for taxpayers with moderate to high taxable income.
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