Question

29. Which item is not deductible for income tax purposes A. Polítical contributions to the Democrat Party because you are promised a job in the administration, B. Wages paid to your employees. C. Rent paid on your business office. D. Ordinary and necessary business expenses of your llegal after hours bar E. All of the above 30. Lisa was married to Max. They had twin ten year old girts. Max died in April 2017 and Lisa did not remarry before the end of the year. Which filing status should Lisa use for her 2017 tax return? A. Single B. Married Filing Jointly C. Head of Household D. Qualifying Widow(er) With Dependent Child E. Married with children 31. Assuming Lisa did not remarry, her 2018 filing status should be: A. Single B. Married Filing Jointly C. Head of Household D. Qualifying Widow(er) With Dependent Child E. Married with children 32. Sandy contributed 10 shares of IBM stock to the American Red Cross, a recognized charity. She paid $500 for the stock five years ago. The stock was worth $1,500 when she gave it to the American Red Cross. The income tax result is: A. Charitable contribution of $1,500 B. Charitable contribution of $500 D. Charitable contribution of $0, only checks or cash quality for a charitable contribution, not stock E. None of the above.

Answer 1

29. A No deduction can be taken for contribution to political parties.

Expenses of illegal business are allowed as deduction.

30. B Married filing jointly

The filing status of the person in the year in which spouse dies is Married filing jointly.

31. D Qualifying Widow with Dependent Child

They have to prove, he is a qualifying child.

32. A Charitable contribution of 1500

The appreciated value or the value at the date of contribution of shares are allowed as deduction if shares are given in charity