Tax Exempt Income Items - CPA Regulation (REG)
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CBI Foundation awarded Karen $65,000 in recognition of lifelong scholarly achievement. Karen was not required to render future services as a condition to receive the $65,000. What condition(s) must have been met for the award to be excluded from Karen’s gross income?
I. Karen was selected for the award by CBI without any action on Karen’s part.
II. Pursuant to Karen’s designation, CBI paid the amount of the award either to a governmental unit or to a charitable organization.
CBI Foundation awarded Karen $65,000 in recognition of lifelong scholarly achievement. Karen was not required to render future services as a condition to receive the $65,000. What condition(s) must have been met for the award to be excluded from Karen’s gross income?
I. Karen was selected for the award by CBI without any action on Karen’s part.
II. Pursuant to Karen’s designation, CBI paid the amount of the award either to a governmental unit or to a charitable organization.
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Prizes and awards may be excluded from taxable income, provided (1) the recipient took no action to be selected for the award, and (2) the award is assigned directly to a governmental unit or charitable organization.
Prizes and awards may be excluded from taxable income, provided (1) the recipient took no action to be selected for the award, and (2) the award is assigned directly to a governmental unit or charitable organization.
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Kent bought Series EE U.S. Savings Bonds after 1989. Redemption proceeds will be used for payment of college tuition for Kent’s dependent child. One of the conditions that must be met for the exemption of accumulated interest on these bonds is that the:
Kent bought Series EE U.S. Savings Bonds after 1989. Redemption proceeds will be used for payment of college tuition for Kent’s dependent child. One of the conditions that must be met for the exemption of accumulated interest on these bonds is that the:
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Series EE Bonds issued after 1989 are must meet several criteria for interest to be tax-exempt: (a) the interest must be used to pay for tuition of the taxpayer, spouse, or dependents; (b) the taxpayer is over age 24 when the bond is issued; (c) a married taxpayer files a joint return; and (d) the taxpayer meets certain income requirements. The bond must be in the taxpayer’s and/or spouse’s name; a child/dependent may only be a beneficiary, not an owner.
Series EE Bonds issued after 1989 are must meet several criteria for interest to be tax-exempt: (a) the interest must be used to pay for tuition of the taxpayer, spouse, or dependents; (b) the taxpayer is over age 24 when the bond is issued; (c) a married taxpayer files a joint return; and (d) the taxpayer meets certain income requirements. The bond must be in the taxpayer’s and/or spouse’s name; a child/dependent may only be a beneficiary, not an owner.
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Lois did not itemize deductions on her Year 9 federal income tax return. In July Year 10, Lois received a state income tax refund of $850 plus interest of $15 for overpayment of Year 9 state income tax. What amount of the state tax refund and interest is tax-exempt on Lois’s Year 10 federal income tax return?
Lois did not itemize deductions on her Year 9 federal income tax return. In July Year 10, Lois received a state income tax refund of $850 plus interest of $15 for overpayment of Year 9 state income tax. What amount of the state tax refund and interest is tax-exempt on Lois’s Year 10 federal income tax return?
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If an individual did not deduct state or local tax paid in a prior year, then the receipt of a state or local tax refund is also not taxable. Interest income on the refund, however, is taxable.
If an individual did not deduct state or local tax paid in a prior year, then the receipt of a state or local tax refund is also not taxable. Interest income on the refund, however, is taxable.
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Of the following exempt organizations must file annual information returns?
Of the following exempt organizations must file annual information returns?
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Private foundations must file annual information returns. Exempt are churches, religious activities, and certain organizations that normally have annual gross receipts of $50,000 or less.
Private foundations must file annual information returns. Exempt are churches, religious activities, and certain organizations that normally have annual gross receipts of $50,000 or less.
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The private foundation status of an exempt organization will terminate if it:
The private foundation status of an exempt organization will terminate if it:
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The private foundation status of an exempt organization will terminate if it becomes a public charity. Not included in exempt status are public safety organizations, supporting organization, broadly publicly supported organizations, and max 60% charitable deduction donees.
The private foundation status of an exempt organization will terminate if it becomes a public charity. Not included in exempt status are public safety organizations, supporting organization, broadly publicly supported organizations, and max 60% charitable deduction donees.
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Of the following items, which would cause a permanent book to tax difference?
Of the following items, which would cause a permanent book to tax difference?
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A deferred asset or liability, as well as a different depreciation method from book accounting, would create a temporary difference in book to tax income, whereas municipal bond income is a permanent difference.
A deferred asset or liability, as well as a different depreciation method from book accounting, would create a temporary difference in book to tax income, whereas municipal bond income is a permanent difference.
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CBI Foundation awarded Karen $65,000 in recognition of lifelong scholarly achievement. Karen was not required to render future services as a condition to receive the $65,000. What condition(s) must have been met for the award to be excluded from Karen’s gross income?
I. Karen was selected for the award by CBI without any action on Karen’s part.
II. Pursuant to Karen’s designation, CBI paid the amount of the award either to a governmental unit or to a charitable organization.
CBI Foundation awarded Karen $65,000 in recognition of lifelong scholarly achievement. Karen was not required to render future services as a condition to receive the $65,000. What condition(s) must have been met for the award to be excluded from Karen’s gross income?
I. Karen was selected for the award by CBI without any action on Karen’s part.
II. Pursuant to Karen’s designation, CBI paid the amount of the award either to a governmental unit or to a charitable organization.
Tap to reveal answer
Prizes and awards may be excluded from taxable income, provided (1) the recipient took no action to be selected for the award, and (2) the award is assigned directly to a governmental unit or charitable organization.
Prizes and awards may be excluded from taxable income, provided (1) the recipient took no action to be selected for the award, and (2) the award is assigned directly to a governmental unit or charitable organization.
← Didn't Know|Knew It →
Kent bought Series EE U.S. Savings Bonds after 1989. Redemption proceeds will be used for payment of college tuition for Kent’s dependent child. One of the conditions that must be met for the exemption of accumulated interest on these bonds is that the:
Kent bought Series EE U.S. Savings Bonds after 1989. Redemption proceeds will be used for payment of college tuition for Kent’s dependent child. One of the conditions that must be met for the exemption of accumulated interest on these bonds is that the:
Tap to reveal answer
Series EE Bonds issued after 1989 are must meet several criteria for interest to be tax-exempt: (a) the interest must be used to pay for tuition of the taxpayer, spouse, or dependents; (b) the taxpayer is over age 24 when the bond is issued; (c) a married taxpayer files a joint return; and (d) the taxpayer meets certain income requirements. The bond must be in the taxpayer’s and/or spouse’s name; a child/dependent may only be a beneficiary, not an owner.
Series EE Bonds issued after 1989 are must meet several criteria for interest to be tax-exempt: (a) the interest must be used to pay for tuition of the taxpayer, spouse, or dependents; (b) the taxpayer is over age 24 when the bond is issued; (c) a married taxpayer files a joint return; and (d) the taxpayer meets certain income requirements. The bond must be in the taxpayer’s and/or spouse’s name; a child/dependent may only be a beneficiary, not an owner.
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Lois did not itemize deductions on her Year 9 federal income tax return. In July Year 10, Lois received a state income tax refund of $850 plus interest of $15 for overpayment of Year 9 state income tax. What amount of the state tax refund and interest is tax-exempt on Lois’s Year 10 federal income tax return?
Lois did not itemize deductions on her Year 9 federal income tax return. In July Year 10, Lois received a state income tax refund of $850 plus interest of $15 for overpayment of Year 9 state income tax. What amount of the state tax refund and interest is tax-exempt on Lois’s Year 10 federal income tax return?
Tap to reveal answer
If an individual did not deduct state or local tax paid in a prior year, then the receipt of a state or local tax refund is also not taxable. Interest income on the refund, however, is taxable.
If an individual did not deduct state or local tax paid in a prior year, then the receipt of a state or local tax refund is also not taxable. Interest income on the refund, however, is taxable.
← Didn't Know|Knew It →
Of the following exempt organizations must file annual information returns?
Of the following exempt organizations must file annual information returns?
Tap to reveal answer
Private foundations must file annual information returns. Exempt are churches, religious activities, and certain organizations that normally have annual gross receipts of $50,000 or less.
Private foundations must file annual information returns. Exempt are churches, religious activities, and certain organizations that normally have annual gross receipts of $50,000 or less.
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The private foundation status of an exempt organization will terminate if it:
The private foundation status of an exempt organization will terminate if it:
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The private foundation status of an exempt organization will terminate if it becomes a public charity. Not included in exempt status are public safety organizations, supporting organization, broadly publicly supported organizations, and max 60% charitable deduction donees.
The private foundation status of an exempt organization will terminate if it becomes a public charity. Not included in exempt status are public safety organizations, supporting organization, broadly publicly supported organizations, and max 60% charitable deduction donees.
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Of the following items, which would cause a permanent book to tax difference?
Of the following items, which would cause a permanent book to tax difference?
Tap to reveal answer
A deferred asset or liability, as well as a different depreciation method from book accounting, would create a temporary difference in book to tax income, whereas municipal bond income is a permanent difference.
A deferred asset or liability, as well as a different depreciation method from book accounting, would create a temporary difference in book to tax income, whereas municipal bond income is a permanent difference.
← Didn't Know|Knew It →
CBI Foundation awarded Karen $65,000 in recognition of lifelong scholarly achievement. Karen was not required to render future services as a condition to receive the $65,000. What condition(s) must have been met for the award to be excluded from Karen’s gross income?
I. Karen was selected for the award by CBI without any action on Karen’s part.
II. Pursuant to Karen’s designation, CBI paid the amount of the award either to a governmental unit or to a charitable organization.
CBI Foundation awarded Karen $65,000 in recognition of lifelong scholarly achievement. Karen was not required to render future services as a condition to receive the $65,000. What condition(s) must have been met for the award to be excluded from Karen’s gross income?
I. Karen was selected for the award by CBI without any action on Karen’s part.
II. Pursuant to Karen’s designation, CBI paid the amount of the award either to a governmental unit or to a charitable organization.
Tap to reveal answer
Prizes and awards may be excluded from taxable income, provided (1) the recipient took no action to be selected for the award, and (2) the award is assigned directly to a governmental unit or charitable organization.
Prizes and awards may be excluded from taxable income, provided (1) the recipient took no action to be selected for the award, and (2) the award is assigned directly to a governmental unit or charitable organization.
← Didn't Know|Knew It →
Kent bought Series EE U.S. Savings Bonds after 1989. Redemption proceeds will be used for payment of college tuition for Kent’s dependent child. One of the conditions that must be met for the exemption of accumulated interest on these bonds is that the:
Kent bought Series EE U.S. Savings Bonds after 1989. Redemption proceeds will be used for payment of college tuition for Kent’s dependent child. One of the conditions that must be met for the exemption of accumulated interest on these bonds is that the:
Tap to reveal answer
Series EE Bonds issued after 1989 are must meet several criteria for interest to be tax-exempt: (a) the interest must be used to pay for tuition of the taxpayer, spouse, or dependents; (b) the taxpayer is over age 24 when the bond is issued; (c) a married taxpayer files a joint return; and (d) the taxpayer meets certain income requirements. The bond must be in the taxpayer’s and/or spouse’s name; a child/dependent may only be a beneficiary, not an owner.
Series EE Bonds issued after 1989 are must meet several criteria for interest to be tax-exempt: (a) the interest must be used to pay for tuition of the taxpayer, spouse, or dependents; (b) the taxpayer is over age 24 when the bond is issued; (c) a married taxpayer files a joint return; and (d) the taxpayer meets certain income requirements. The bond must be in the taxpayer’s and/or spouse’s name; a child/dependent may only be a beneficiary, not an owner.
← Didn't Know|Knew It →
Lois did not itemize deductions on her Year 9 federal income tax return. In July Year 10, Lois received a state income tax refund of $850 plus interest of $15 for overpayment of Year 9 state income tax. What amount of the state tax refund and interest is tax-exempt on Lois’s Year 10 federal income tax return?
Lois did not itemize deductions on her Year 9 federal income tax return. In July Year 10, Lois received a state income tax refund of $850 plus interest of $15 for overpayment of Year 9 state income tax. What amount of the state tax refund and interest is tax-exempt on Lois’s Year 10 federal income tax return?
Tap to reveal answer
If an individual did not deduct state or local tax paid in a prior year, then the receipt of a state or local tax refund is also not taxable. Interest income on the refund, however, is taxable.
If an individual did not deduct state or local tax paid in a prior year, then the receipt of a state or local tax refund is also not taxable. Interest income on the refund, however, is taxable.
← Didn't Know|Knew It →
Of the following exempt organizations must file annual information returns?
Of the following exempt organizations must file annual information returns?
Tap to reveal answer
Private foundations must file annual information returns. Exempt are churches, religious activities, and certain organizations that normally have annual gross receipts of $50,000 or less.
Private foundations must file annual information returns. Exempt are churches, religious activities, and certain organizations that normally have annual gross receipts of $50,000 or less.
← Didn't Know|Knew It →
The private foundation status of an exempt organization will terminate if it:
The private foundation status of an exempt organization will terminate if it:
Tap to reveal answer
The private foundation status of an exempt organization will terminate if it becomes a public charity. Not included in exempt status are public safety organizations, supporting organization, broadly publicly supported organizations, and max 60% charitable deduction donees.
The private foundation status of an exempt organization will terminate if it becomes a public charity. Not included in exempt status are public safety organizations, supporting organization, broadly publicly supported organizations, and max 60% charitable deduction donees.
← Didn't Know|Knew It →
Of the following items, which would cause a permanent book to tax difference?
Of the following items, which would cause a permanent book to tax difference?
Tap to reveal answer
A deferred asset or liability, as well as a different depreciation method from book accounting, would create a temporary difference in book to tax income, whereas municipal bond income is a permanent difference.
A deferred asset or liability, as well as a different depreciation method from book accounting, would create a temporary difference in book to tax income, whereas municipal bond income is a permanent difference.
← Didn't Know|Knew It →
CBI Foundation awarded Karen $65,000 in recognition of lifelong scholarly achievement. Karen was not required to render future services as a condition to receive the $65,000. What condition(s) must have been met for the award to be excluded from Karen’s gross income?
I. Karen was selected for the award by CBI without any action on Karen’s part.
II. Pursuant to Karen’s designation, CBI paid the amount of the award either to a governmental unit or to a charitable organization.
CBI Foundation awarded Karen $65,000 in recognition of lifelong scholarly achievement. Karen was not required to render future services as a condition to receive the $65,000. What condition(s) must have been met for the award to be excluded from Karen’s gross income?
I. Karen was selected for the award by CBI without any action on Karen’s part.
II. Pursuant to Karen’s designation, CBI paid the amount of the award either to a governmental unit or to a charitable organization.
Tap to reveal answer
Prizes and awards may be excluded from taxable income, provided (1) the recipient took no action to be selected for the award, and (2) the award is assigned directly to a governmental unit or charitable organization.
Prizes and awards may be excluded from taxable income, provided (1) the recipient took no action to be selected for the award, and (2) the award is assigned directly to a governmental unit or charitable organization.
← Didn't Know|Knew It →
Kent bought Series EE U.S. Savings Bonds after 1989. Redemption proceeds will be used for payment of college tuition for Kent’s dependent child. One of the conditions that must be met for the exemption of accumulated interest on these bonds is that the:
Kent bought Series EE U.S. Savings Bonds after 1989. Redemption proceeds will be used for payment of college tuition for Kent’s dependent child. One of the conditions that must be met for the exemption of accumulated interest on these bonds is that the:
Tap to reveal answer
Series EE Bonds issued after 1989 are must meet several criteria for interest to be tax-exempt: (a) the interest must be used to pay for tuition of the taxpayer, spouse, or dependents; (b) the taxpayer is over age 24 when the bond is issued; (c) a married taxpayer files a joint return; and (d) the taxpayer meets certain income requirements. The bond must be in the taxpayer’s and/or spouse’s name; a child/dependent may only be a beneficiary, not an owner.
Series EE Bonds issued after 1989 are must meet several criteria for interest to be tax-exempt: (a) the interest must be used to pay for tuition of the taxpayer, spouse, or dependents; (b) the taxpayer is over age 24 when the bond is issued; (c) a married taxpayer files a joint return; and (d) the taxpayer meets certain income requirements. The bond must be in the taxpayer’s and/or spouse’s name; a child/dependent may only be a beneficiary, not an owner.
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