Which of the following is not tax exempt? A. Amount of any damages received by agreement on account of injuries sustained. B. Consequential damages representing the loss of the victim’s earning capacity awarded by the courts to the heirs of the victim. C. Award of compensatory, actual, moral, and exemplary damages. D. None of the above E. All of the above

Which of the following is not tax exempt? A. Amount of any damages received by agreement on account of injuries sustained. B. Consequential damages representing the loss of the victim’s earning capacity awarded by the courts to the heirs of the victim. C. Award of compensatory, actual, moral, and exemplary damages. D. None of the above E. All of the above

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 2MCQ

See similar textbooks

Similar questions

6. There is no taxable income until such income is recognized. Taxable income is recognized when the (BEQ) a. taxpayer fails to include the income in his income tax retum. b. income has been actually received in money or its equivalent. income has been received, either actually or constructively. d. transaction that is the source of the income is consummated. CS Scanned with CamScanner
TRUE OR FALSE? The object of distraint may either be personal and/or real properties of a delinquent taxpayer.
Which one of the following is not true of itemized deductions of an individual taxpayer? Deductions for AGI are generally preferable to itemized deductions. Itemized deductions are deductible only if they exceed a taxpayer's standard deduction. Residential interest is a common example of an itemized deduction. All employee trade or business expenses are itemized deductions.
Which of the following is the proper tax treatment of a loss that is realized on an involuntary conversion business property? The loss is never recognized, the loss is categorized as a short-term capital loss, the loss is recognized or the loss is recognized on the involuntary conversion of real estate, but not on the involuntary conversion of personal property
Which is NOT true?a. Deductions partake the nature of an exemptionb. Exemptions are strictly construed against the taxpayerc. Exemptions are liberally interpreted in favor of the taxpayerd. If tax law is vague, it benefits the taxpayer
A taxpayer who acquired property in a related party transaction where a loss is realized cannot use the disallowed loss to later create a loss on the sale of that property. True or false
The income tax treatment of damages received from personal physical injuries is an application of the: a.administrative convenience concept. b.capital recovery concept. c.ability-to-pay concept. d.wherewithal-to-pay concept. e.all-inclusive income concept.
Which of the following is accurate regarding a real estate foreclosure transaction? A A foreclosure transaction can never involve recourse debt. B A foreclosure transaction can never involve nonrecoursedebt. C A foreclosure transaction has no federal income taxconsequences for the borrower. D A foreclosure transaction can have significant federalincome tax consequences for the borrower.
S1: Gross income exclusion are flow of wealth to taxpayers which are not considered as part of gross income for purposes of computing taxpayer's taxable income because it is exempted by law or statute and it does not meet the definition of income. S2: Remuneration for services constitutes compensation income even if the relationship of employer and employee does not exist any longer at the time when payment is made as long as the related payment constitutes compensation for the services rendered during the existence of an employer-employee relationship. OS1 is false; S2 is true OS1 is true; $2 is true OS1 is true; S2 is false OS1 is false: S2 is false
Which of the following types of expenses is deductible? Group of answer choices A.Bribes & Illegal Kickbacks B.Expenses related to Tax-Exempt Income C.Political Contributions D.Contingency Attorney Fees
The first step that must be completed to determine the allowable losses when a taxpayer has multiple passive activities is tto figure the what?