Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
26th Edition
ISBN: 9781337702621
Author: Kevin E. Murphy, Mark Higgins
Publisher: Cengage Learning
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Chapter 10, Problem 24P
To determine
Specify the manner in which the depreciation expense must be ascertained.
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The executor of an estate is filing an income tax return for the current period. Revenues of $25,000 have been earned. Which of the following is not a deduction allowed in computing taxable income? Choose the correct.a. Income distributed to a beneficiary.b. Funeral expenses.c. A personal exemption.d. Charitable donations.
These statements are presented to you for evaluation:Statement I – In order that a property previously taxed may be claimed as a deduction from the gross estate, such property must have been acquired by the present decedent either by gratuitous or onerous title within five years prior to his death.Statement II – When the exclusive property of the decedent was mortgaged to secure a loan obtained by the decedent for the education of the legitimate children of the spouses, the mortgage debt shall be a deduction from the exclusive properties of the decedent.In your evaluation of the foregoing statements:
Group of answer choices
Both statements are false.
Only Statement I is true.
Both statements are true.
Only Statement II is true.
A real property was transferred to a revocable trust with Carding as the beneficiary. The property earned a total of 900,000 gross rentals during the taxable period. The expenses attributable to the maintenance of the same property amounted to P200,000. During the period, 250,000 of the total rentals was distributed to the beneficiary. How much is the allowable special deduction for income distribution to the beneficiary?
a. Zero
b. 200,000
c. 250,000
d. 300,000
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Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
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