Question

6) Points paid at settlement on the initial financing of one's principal residence must be capitalized and amortized over the period of time to which they relate. True or False

7) Interest credited to a taxpayer's savings account is not included in their income until it is withdrawn. True or False

8) A taxpayer receives rental income in 2019, with the understanding that he will rebate whatever is deemed excessive by rent-control authorities. He is compelled to make such a rebate in 2020. He should include the full amount of the rent received in 2019, in his income for that year. True or False

9) Most changes in accounting method require IRS approval. True or False

Answer 1

6. True , the initial charges paid needs to be capitalised.

7. False, Interest needs to credited , there is no question of withdrawl as its in the bank account of the tax payers

8. True , as a taxpayer includes the rental income in his income then will take a eligible rebate on the income.

9. False , No requirement of IRS approval for changing of accounting method.