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1. The TP had the following personal expenses:

Real Property Taxes$ 4,900

2020 State income tax withholdings$ 3,200

Personal Property Taxes on family car

[(2% x FMV of car ($35,000) + flat

fee of $100)]$ 800

Medical Bills$10,500

Home Mortgage Interest (from Form 1098)$ 9,000

Charitable contributions - public charities $ 3,000(cash)

They made quarterly estimated payments toward their 2020 state income taxes: 4/15/20 - $500; 6/14/20 - $500; 9/14/20 - $500; 1/15/21 - $500.

If the TPs AGI was $100,000, which of the following is correct?

a. Schedule A, Line 11 would be $720.

b. Schedule A, Line 8b would be $9,000.

c. Schedule A, Line 5e would be $10,300.

d. Schedule A, Line 4 would be $3,000.

If the TP in above had the filing status of married filing jointly, the amount on Form 1040, Line 9 should be:

a. $12,400.

b. $24,800.

c. $25,000.

d. $27,700.

2. If the TP overpays her 2020 Federal income tax liability by $5,200, but wants to apply $3,000 of the overpayment to her 2021 estimated Federal income tax liability, then she should enter $3,000 on:

a. Form 1040, Line 20.

b. Schedule 3, Line 8.

c. Form 1040, Line 17.

d. Form 1040, Line 22.

3. NOTE: For this question, you must read every reference to a year on Form 4562 as that year + 1 (i.e., any 2019 reference is 2019 + 1 or 2020). If the taxpayer is depreciating office furniture that was placed in service in 2019, then the depreciation expense for 2020 in the amount of $2,761 would be entered on:

a. Form 4562, Line 19b.

b. Form 4562, Line 19c.

c. Form 4562, Line 17.

d. Form 4562, Line 14.

4. The taxpayer owns a sole proprietorship and sells only 1 piece of equipment during the year. The equipment was purchased 3 years ago for $90,000. The equipment was sold on September 1, 2020 for $70,000. The combination of Section 179 expense and MACRS depreciation taken on the equipment through the date of sale was $40,000. Which of the following would be a correct entry on the tax return based solely on this information?

a. $40,000 on Form 4797, Part III, Line 23 (for Property A).

b. $20,000 on Form 4797, Part II, Line 13.

c. ($3,000) on Form 1040, Line 6.

d. $20,000 on Schedule D, Part II, Line 11.

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