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1. Frieda is 67 years old and deaf. If Frieda files as a head of household, what amount of standard deduction can she claim in 2019?

Multiple Choice

• $12,200.

• $13,850.

• $18,350.

• $19,650.

• $20,000.

9,

Which of the following is a true statement?

Multiple Choice

• Taxpayers may only deduct interest on up to $1,500,000 of acquisition indebtedness.

• Taxpayers may deduct interest on up to $1,000,000 of home-equity debt.

• The deduction for investment interest expense is not subject to limitation.

• A taxpayer who incurs acquisition indebtedness in 2018 may only deduct interest on up to $750,000 of acquisition indebtedness.

• None of the choices are correct.

10,

Campbell, a single taxpayer, has $400,000 of profits from her general store, which she operates as a sole proprietorship. She has $100,000 of employee wages, $40,000 of qualified property, and $500,000 of taxable income before the deduction for qualified business income. How much is Campbells deduction for qualified business income?

Multiple Choice

• $100,000.

• $80,000.

• $50,000.

• $26,000.

• $0.

11,

Congress allows self-employed taxpayers to deduct the cost of health insurance above the line (for AGI) because:

Multiple Choice

• employers are allowed to deduct Social Security (FICA) taxes as a business expense.

• self-employed taxpayers need an alternate mechanism for reducing the cost of health care.

• this deduction provides a measure of equity between employees and the self-employed.

• health insurance premiums cannot be deducted otherwise.

• None of the choices are correct.

12,

This year Norma, a single taxpayer, paid $11,200 of real estate taxes on her personal residence and $9,500 of state income taxes. Which of the following is true?

rev: 12_13_2019_QC_CS-193533

Multiple Choice

• Norma can deduct $11,200 of real estate taxes as an itemized deduction.

• Norma can deduct $9,500 of state income taxes as a for AGI deduction.

• Norma can deduct $10,000 of taxes as an itemized deduction.

• If Norma has no other itemized deductions, she should still itemize her deductions.

• None of the choices are correct.

16,

Campbell, a single taxpayer, has $400,000 of profits from her general store, which she operates as a sole proprietorship. She has no employees, $40,000 of qualified property, and $500,000 of taxable income before the deduction for qualified business income. How much is Campbells deduction for qualified business income?

Multiple Choice

• $100,000.

• $80,000.

• $20,000.

• $1,000.

• $0.

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