Greetings!
Happy Thursday!
Tax season is running in its last month! Our Newsletter #21 issue is out today.
With the hot news of this week being tax preparers suing the IRS over the registered tax return preparer process, especially the examination requirement. The new IRS program is being challenged!. Read more about here
On the blog, weekly article post continues on the topic of practice and procedures section of the IRS outline for RTRP competency exam.
Stay tuned and please share this Newsletter with your colleagues and friends.
Have a wonderful week!
Norma Wahnon
 | | Norma Wahnon. |
|
|
Sign Up to Our Mailing List and Be Part of 1040 Exam Prep Community |
This section will bring a page of related articles in PDF format that you can download and print out in order to have all articles covering a specific topic together. Be prepared and pass the exam!
COMMING SOON !
|
This series of articles opens with small pieces on the content of domain six of the IRS test specifications on practices and procedures. It includes a considerable variety of tax topics to review for the exam.
Form 9465 "Installment Agreement Request" under analysis in this article. Don't miss it!!
Read it in 1040examprep blog.
|
Mutiple Choice Practice Question Gambling losses
Doyle has gambling losses totaling $7,000 during the current year. Doyle's adjusted gross income is $60,000, including $3,000 in gambling winnings. Doyle can itemize the deductions. What amount of gambling losses is deductible?
a. $0
b. $3,000
c. $5,800
d. $7,000
Solution:
Choice "b" is correct. Gambling losses are miscellaneous itemized deductions not subject to the 2% AGI limitation. The deductions for gambling losses are, however, limited to gambling winnings.
Choice "a" is incorrect. Gambling losses are deductible up to gambling winnings.
Choice "c" is incorrect. Gambling losses are not subject to the 2% limitation.
Choice "d" is incorrect. The deduction for gambling losses cannot exceed gambling winnings
(Source: Questions and answers published by AICPA) |
|
Tax term definition section |
Tax term definition
"Hobby loss"
A non-deductible loss arising from a personal hobby as contrasted with an activity engaged in for pr ofit. Generally, the law provides a rebuttable presumption that an activity is engaged in for profit if profits are earned during any three or more years during a five-year period
(Source: IRS website)
|
