Question

1. Under the TCJA, personal and dependency exemptions in 2018

1. are doubled
2. remain the same
3. are eliminated
4. None of the above.

2. Under the TCJA, miscellaneous itemized deductions, which in 2017 needed to exceed 2 percent of AGI to be deductible, in 2018

1. are doubled
2. remain the same
3. are eliminated
4. None of the above.

3. Under the TCJA, individual income tax rates in 2018 in general

1. are increased
2. remain the same
3. are eliminated
4. are decreased
5. None of the above.

4. Under the TCJA, the standard deductions in 2018

1. are nearly doubled
2. remain the same
3. are eliminated
4. are reduced
5. None of the above.

5. Under the TCJA, bonus depreciation in 2018

1. Will be 100 percent
2. remains the same
3. is eliminated
4. Applies to new and used property
5. A. and D.

6. Under the TCJA, I.R.C. section 179 expensing for 2018

1. Is increased to $1 million
2. Is reduced when 179 property exceeds $2.5 million
3. Both A. and B.
4. Neither A. nor B.

7. The TCJA

1. Repeals the business entertainment deduction
2. Limits business food and beverage deduction to 50% from 1/1/18-12/31/25
3. Repeals the business food and beverage deduction after 2025
4. All of the above.
5. None of the above.

8. The TCJA

1. Limits I.R.C. section 1031 like kind exchanges to land which is not inventory
2. Repeals the old I.R.C. section 199 DPAD (Domestic Production Activities Deduction)
3. Repeals the I.R.C. section 132 Qualified Transportation Fringe Exclusion
4. All of the above.
5. None of the above.

9. Under the TCJA’s I.R.C. section 199A 20% Qualified Business Income Deduction,

1. Qualified business income includes service income
2. Service income does not include W-2 income and partner guaranteed payments
3. C corporations do not qualify for the section 199A deduction
4. Specified service businesses lose the section 199A deduction, if qualified business income exceeds the phase-out range, and lose the deduction proportionately within the phase-out range, to the extent qualified business income exceeds the lower limit of the phase-out range over the total dollars in the phase-out range, multiplied by the calculated deduction
5. All of the above.

10. For taxpayers husband and wife with two children,

1. During the 2017 presidential campaign, then candidate Donald Trump promised a tax cut of 35%.
2. The TCJA might provide two child tax credits, one for each child, in the amount of $2,000 for per child, as long as a child does not reach age 17 in a tax year
3. The TCJA might provide a tax increase depending on, among other provisions, the child tax credit, tax rate, and lost itemized deductions despite increased standard deduction
4. All of the above.
5. None of the above.

Answer 1

1. Under the TCJA, personal and dependency exemptions in 2018 are eliminated (Answer is (C))
2. Under the TCJA, miscellaneous itemized deductions, which in 2017 needed to exceed 2 percent of AGI to be deductible, in 2018 are eliminated (Answer is (C))
3. Under the TCJA, individual income tax rates in 2018 in general are decreased (Answer is (D))
4. Under the TCJA, the standard deductions in 2018 are nearly doubled (Answer is (A))