Question

QUESTION 7 'A qualifying abandoned spouse may file head of household. True False QUESTION 8 For tax purposes, the cash method of accounting is subject to which of the following doctrines? Constructive receipt doctrine All events test doctrine Return of capital doctrine Assignment of income doctrine QUESTION 9 Which of the following is not true regarding deductions from adjusted gross income (AGI)? A dependent's standard deduction amount may be limited. The standard deduction is based generally on the taxpayer's filing status. There is an additional amount added to the standard deduction for being blind, Married couples filing separately are not allowed to itemize their deductions. Click Save and Submit to save and submit. Click Save All Ansel

Answer 1

1) Solution: True
Explanation: An abandoned spouse is allowed to file as head of household however have to meet specific criteria and norms
2) Solution: Constructive receipt doctrine
Explanation: Constructive receipt doctrine is applicable to the cash method for the tax purposes. Under the constructive receipt doctrine a taxpayer would be categorised of having the income received when the amount is readily made available to the taxpayer who without substantial restriction or limitations holds the control over the amount
3) Solution: Married couple filing separately are not allowed to itemize their deductions
Explanation: The standard deduction for the taxpayer is based on filing status and usually is increased every year. Moreover the standard deduction is increased if taxpayer is legally blind. The deduction for a dependent is limited. When married couples are filing their returns separately they are allowed to itemize their deductions