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Tax Questions... Multiple Cho meth

1. For federal tax purposes, royalty income non derived in the ordinary course of a business is classified ad as:
Active income
Portfolio income
Passive income
None of the above

2. Which of the following is not an example of a nontaxable like-kind exchange?
An ice choice making machine for inventory of Rocky Road ice cream.
Land for an office building.
A printer for a computer.
The business of an apartment building for a store building.

3. Al and Amy bill a joint return for the 2007 tax year. Their adjusted gross(a) income is $80,000. They had net investment income of $7,000. In 2007, they had the following beguile expenses:

personal credit card interest $4,000;
Home mortgage interest $8,000; and
Investment interest (on loans used to buy stocks) $10,000.

What is the interest proof for Al and Amy for the 2007 tax year?
$8,000
$15,000
$12,000
$18,000

4. Charitable contribution deductions for coin donations made by individuals to public charities are limited to:
50% of AGI
40% of AGI
30% of AGI
20% of AGI

5. The following taxes were paid by Tim: Real estate taxes on his home: $2,000; demesne income taxes: $900; and State gasoline tax (personal use of automobile): $150.





In itemizing his deductions, what is the amount that Tim may claim as a deduction for taxes?
$2,000
$2,900
$3,050
$0

6. Josh change a piece of business equipment that had an adjusted basis to him of $50,000. In return for the equipment, Josh received $60,000 cash and a pic with a fair market value of $20,000 from the buyer. The buyer too assumed Joshs $25,000 loan on the equipment. Josh paid $5,000 in selling expenses. What is the amount of Joshs cause on the sale?
$50,000
$105,000
$75,000
$60,000

7. Bens post, which has an adjusted basis of $85,000, is condemned by the state government. The authorities replace his property with other qualified property which cost them $120,000. What is Bens recognized gain?
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