In which of the following situations may taxpayers file as married filing jointly?
Question No 2
Barkley owns a vacation cabin that was rented to unrelated parties for 10 days during the year for
$2,500. The cabin was used personally by Barkley for three months and left vacant for the rest of the
year. Expenses for the cabin were as follows:
Real estate taxes $1,000
Maintenance and utilities $2,000
How much rental income (loss) is included in Barkley's adjusted gross income?
Question No 3
In evaluating the hierarchy of authority in tax law, which of the following carries the greatest
authoritative value for tax planning of transactions?
Question No 4
In 19X4, Smith, a divorced person, provided over one half the support for his widowed mother, Ruth,
and his son, Clay, both of whom are U.S. citizens. During 19X4, Ruth did not live with Smith. She
received $9,000 in Social Security benefits. Clay, a 25 year - old full - time graduate student, and his
wife lived with Smith. Clay had no income but filed a joint return for 19X4, owing an additional $500
in taxes on his wife's income. How many exemptions was Smith entitled to claim on his 19X4 tax
return?
Question No 5
Darr, an employee of Sorce C corporation, is not a shareholder. Which of the following would be
included in a taxpayer's gross income?