Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Question
Chapter 10, Problem 11MCQ
To determine
Introduction:
To choose: The best option that is not allowed as a deduction in partnerships while calculating ordinary income.
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Students have asked these similar questions
9. Explain the effect of guaranteed payments and ordinary business income, according to the status of the partner (general or limited), to calculate the self-employment earnings and the self-employment tax.
Which one of the following statements regarding partnership taxation is incorrect?
a.Partnership income is comprised of ordinary partnership income or loss and separately stated items.
b.A partnership is required to file a return with the IRS.
c.A partner's profit-sharing percentage may differ from the partner's loss-sharing percentage.
d.A partnership is a tax-paying entity for Federal income tax purposes.
Which of the following items may be subject to the self-employment tax?
a.Dividend income
b.Interest income
c.Capital gains
d.A partner's distributive share of partnership income
Chapter 10 Solutions
Income Tax Fundamentals 2020
Ch. 10 - Which of the following may not be treated as a...Ch. 10 - Prob. 2MCQCh. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 6MCQCh. 10 - Abigail contributes land with an adjusted basis of...Ch. 10 - Prob. 8MCQCh. 10 - Prob. 9MCQCh. 10 - Prob. 10MCQ
Ch. 10 - Prob. 11MCQCh. 10 - Prob. 12MCQCh. 10 - Prob. 13MCQCh. 10 - Prob. 14MCQCh. 10 - Prob. 15MCQCh. 10 - Prob. 16MCQCh. 10 - Kendra is an attorney and owns 60 percent of a law...Ch. 10 - Prob. 18MCQCh. 10 - In 2019, Gloria, a single taxpayer, receives a...Ch. 10 - Prob. 20MCQCh. 10 - Prob. 21MCQCh. 10 - Prob. 22MCQCh. 10 - Prob. 23MCQCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16P
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- Ay 2. Mcq Which of the following items may be subject to the sef-employmant tax? A partners distributive share of partnership income b. Capital gains c. Interest income d. Dividends income E. None of these choices are correctarrow_forwardWhich of the following is considered nonpassive income? Income from a trade or business in which the taxpayer does not materially participate. Ordinary income a limited partner receives from a partnership they only invested in and do NOT participate in. Portfolio income: Interest, dividends, annuities, and royalties. Rental income from a non-real estate professional.arrow_forwardWhat is the primary difference between the income statement ofa sole proprietorship or partnership and the income statement of acorporation?arrow_forward
- 1. Which of the following is not taxable income? a.Interest b.Hobby income c.Child support payments d.Royalties e.Dividends 2. Generally, for an activity to be treated as a trade or business, which of the following is required: a.No more than intermittent effort toward the activity b.Regular and continual effort designed to seek profit c.Always generate a profit d.Organization as a corporation or partnership 3. To be deductible as the cost of special work clothing or uniforms: a.The clothing need not be required as a condition of the job, but must not be suitable for everyday use. b.The clothing must be required as a condition of the job, but can also be suitable for everyday use. c.The clothing must not be suitable for everyday use and must be required as a condition of the job. d.Only the cost of the clothing is included; upkeep is not deductible.arrow_forwardWhich of the following taxpayers cannot claim deductions from gross income? General professional partnership Domestic corporation Resident foreign corporation Non-resident foreign corporationarrow_forwardIf no agreement exists in a partnership as to the allocation of income, what method is appropriate?arrow_forward
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