Tax-individual – week 8

QUESTION 1

What is the purpose of the AMT (Alternative Minimum Tax)? What is one problem with the alternative minimum tax?

QUESTION 2

What is a refundable credit? Give examples.

QUESTION 3

What is a nonrefundable credit? Give examples

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QUESTION 4

How is the amount realized determined on a property transaction?

QUESTION 5

Explain cash method accounting.

QUESTION 6

Explain accrual method accounting.

QUESTION 7

What must a taxpayer establish to take a bad debt deduction.

QUESTION 8

What is included in Gross Income?

QUESTION 9

What is excluded from Gross Income?

QUESTION 10

What is the difference between exclusions and deductions?