Question

7. MC.06.097 Which of the following is not a related party for constructive ownership purposes under $ 267? a. A corporation owned more than 50% by the taxpayer. Ob. The taxpayer's brother. c. The taxpayer's grandmother, Od. The taxpayer's aunt. Oe. None of these choices are correct. 8. MC.05.091 Tonya is a cash basis taxpayer. In 2019, she paid state income taxes of $8,000. In early 2020, she fled her 2019 state income tax return and received a $900 refund. O a. If Tonya itemized her deductions in 2019 on her Federal income tax return, she must amend her 2019 Federal income tax return and use the standard deduction, b. If Tonya itemized her deductions in 2019 on her Federal income tax return and her itemized deductions exceeded the standard deduction by at least $900, the refund will not affect her 2020 tax return. Oc. If Tonya itemized her deductions in 2019 on her Federal income tax return and her itemized deductions exceeded the standard deduction by more than $900, she must recognize $900 income in 2020 under the tax benefit rule. Od. If Tonya itemized her deductions in 2019 on her Federal income tax return, she should amend her 2019 return and reduce her itemized deductions by $900. Oe. None of these choices are correct. 9. MC.06.069 Benita incurred a business expense on December 10, 2019, which she charged on her bank credit card. She paid the credit card statement that included the charge on January 5, 2020. Which of the following is correct? a. If Benita is a cash method taxpayer, she cannot deduct the expense until 2020. b. If Benita uses the accrual method, she can choose to deduct the expense in either 2019 or 2020. c. If Benita is an accrual method taxpayer, she can deduct the expense in 2019. d. Only "If Benita is an accrual method taxpayer, she can deduct the expense in 2019" and "If Benita uses the accrual method, she can choose to deduct the expense in either 2019 or 2020" are correct.

Answer 1

7. MC 06.097 which of the I for constructive is following ownership not a purposes related party under & 267? (@). None of these choices are correct. 8 Mc .05.091. - Tonya is a cash basis tax payer. In 2019, she paid State income taxes of $8000 In carly 2020, she filed her 2019 Federal Income Tax return and received a goo refund. (e). It Tonya itemized her deduction in 2019 on her Federal Income Tax return and her iremised deductions exceeded the standard deduction by more than $900 , she must recognize $ 900 income in 2020 under the tax benefit rull. 9. Mc. 06.069. Benita incurred a which she charged paid the credit card on Jan 5, 2020. Which business expense on Dec 10, 2019, on her bank credit card. She statement that included the charge of the following is correct? (d). Only If Benita is an accoual method taxpayer, she can deduct the expense in 2019" and It Benita uses the acconal method, she can choose to deduct the expense either in 2019 or 2020" are correct