4001 Chapters 1-5 Exam - Questions & Detailed Solutions

What is the tax return due date for individuals? C corporations? Partnerships and S corporations? {Ans: April 15 ; April 15 ; March 15}________________ and ______________ income are not included in gross income. {Ans: excluded (e.g. municipal bond interest, gain on sale of personal residence) ; deferred (e.g. installment sales)}Capital assets are all assets except: {Ans: •Accounts receivable •Inventory •Assets used in trade or business, including supplies}The time that income is taxed or an expense is deducted affects the __________________ of the taxes paid on income or the tax savings on deductions. {Ans: present value}a completed transaction. Opinion based on the transaction; no planning {Ans: closed facts}For divorce or separation agreements executed after ___________________________, alimony is not taxable to the recipient or deductible by the payor. {Ans: December 31, 2018}