Which of the following is among the requirements to enable a taxpayer to be classified as a “qualifying window”?Ⅰ.A dependent has lived with the taxpayer for six months Ⅱ.The taxpayer has maintained the cost of the principal residence for six months
A. I only.
B. II only.
C. Both I and II.
D. Neither I nor II.
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On December 1 of the current taxable year, Krest, a self-employed cash basis taxpayer, borrowed 200,000 to use in her business. The loan was to be repaid on November 30 of the following year. Krest paid the entire interest amount of 24,000 on December 1 of the current year. What amount of interest was deductible on Krest's current year income tax return?()
A. $0
B. $2,000
C. $22,000
D. $24,000
The Clarks have a 21-year-old son, Alex, who is a full-time student at the state university. Alex received 10,000 in scholarships this year for academic achievement. He also works part time at the university bookstore and earned 5,400 this year. The Clarks paid 7,000 to support Alex this year. Alex was home for two months in the summer and at school for the rest of the year. Alex used the scholarship, the earnings from the part-time job, and the money from his parents as his only source of support this year. Which of the following definitions does Alex meet for the Clarks?()
A. Qualifying child
B. Qualifying relative
C. Exemption
D. Qualifying
A taxpayer received 200 in interest from U.S. Treasury bonds and 300 in interest from municipal bonds. What amount of interest should be included in the taxpayer's gross income?()
A. $0
B. $200
C. $300
D. $500
Nare, an accrual-basis taxpayer, owns a building which was rented to Mott under a 10-year lease expiring August 31, Year 8. On January 2, Year 2, Mott paid 30,000 as consideration for canceling the lease. On November 1, Year 2, Nare leased the building to Pine under a five year lease. Pine paid Nare 10,000 rent for the two months of November and December, and an additional 5,000 for the last month's rent. What amount of rental income should Nare report in its Year 2 income tax return?()
A. $10,000
B. $15,000
C. $40,000
D. $45,000