Free CPA REG (Taxation & Regulation) Federal Taxation of Individuals Practice Questions
Practice federal taxation of individuals for the CPA REG exam. Questions cover gross income, adjustments, deductions, credits, filing status, and the alternative minimum tax.
Sample Questions
Question 1
Easy
Which of the following amounts must be included in a taxpayer's gross income?
Solution
D is correct. Alimony received under a divorce agreement executed before 2019 is included in the recipient's gross income under Section 71 as it existed prior to the Tax Cuts and Jobs Act. The TCJA eliminated the inclusion for agreements executed after December 31, 2018, but pre-2019 agreements remain subject to the prior rules unless modified.
Choice A is incorrect because life insurance proceeds paid by reason of death are excluded under Section 101(a).
Choice C is incorrect because inheritances are excluded from gross income under Section 102.
Choice B is incorrect because workers' compensation for personal injuries is excluded under Section 104(a)(1).
Choice A is incorrect because life insurance proceeds paid by reason of death are excluded under Section 101(a).
Choice C is incorrect because inheritances are excluded from gross income under Section 102.
Choice B is incorrect because workers' compensation for personal injuries is excluded under Section 104(a)(1).
Question 2
Medium
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Solution
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Question 3
Hard
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Solution
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