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I am aware that I need to be in a quiet room to take the exam.  

Joe had the following during the current year a gift from his friend of $800, $6,000 interest on CD’s, $3,500 interest on municipal bonds, and $4,000 in dividends from Wal-Mart. What is Joe’s gross income?

Taxpayers are required to make payments of tax ratably throughout the year, either through employer withholding or through estimated payments. Which of the following is true?

Hansel and Gretel, a married couple, manage apartments and they are required to live in the managers’ apartment as a condition of their employment. Instead of providing the apartment to Hansel and Gretel rent-free, the owner of the apartment building gives Hansel and Gretel a housing allowance of $600, which they use to pay rent on the managers’ apartment. Hansel and Gretel pay $600 per month in rent. If they did not live in the managers’ apartment, Hansel and Gretel could live in another apartment building where they would only pay $500 in rent. What amount, if any, must be included in Hansel and Gretel’s gross income?

On October 15 of last year, Erin purchased stock in Happy Irish Ale Corporation for $2,000. The stock is not small business stock. On June 15 of the current year, the stock became worthless. How should Erin treat the loss this year on her tax return?

Arrange the following statutes of limitation from longest to shortest.  1. Fraud. 2. Collection of deficiency by IRS. 3. Substantial Understatement of Income greater than 25%. 4. General Statute of Limitations under Section 6501.

Travis owns rental property and is an active participant in the management & upkeep of the property.  Unfortunately the property suffered a loss of $24,000.   If Randy’s AGI is $160,000 for the current  year, what is his  available loss against ordinary income assuming he has the required amount at risk?

Grace obtained a first mortgage loan this year from her mother, Angela, in the amount of $200,000 to acquire a home in Austin, Texas. Grace owns no other real property. She has no investment income. The loan’s interest rate is 1%, with a 30 year amortization schedule of monthly payments. The Applicable Federal Rate for interest on this type of loan is 5%. Which of the following statements is (are) true? I. Grace will be able to claim an interest expense deduction for interest on a qualified residence, if she itemizes deductions II. Angela is required to report interest income based on an IRS schedule of rates, rather than the 1% rate charged to Grace.

Income to U.S. taxpayers is taxed in the year it is derived in which of the following situations? 

All of the following will be treated the same for both regular income tax & AMT except: