1. Taxpayer buys a car for $25,000 at a discount. Sells it for $26,000. Which is most correct? 2. John and Joseph are married. John sells property for $85,000. What is most correct... 1. Taxpayer buys a car for $25,000 at a discount. Sells it for $26,000. Which is most correct? 2. John and Joseph are married. John sells property for $85,000. What is most correct? 3. Sarah works at a law firm and takes clients to lunch. What is most correct about her deductions? 4. Khalid sells his principal residence for $2.2 million. What is most correct? 5. According to Treasury Analysis, which statement about racial/ethnic disparities in tax breaks is most correct?
Understand the Problem
The questions are asking for the most accurate answers pertaining to tax-related scenarios and regulations in various contexts, such as personal asset sales, property transactions between family members, lunch deductions for employees, principal residence sales, and racial/ethnic disparities in tax breaks.
Answer
1. d 2. c 3. a 4. b 5. c
- d
- c
- a
- b
- c
Answer for screen readers
- d
- c
- a
- b
- c
More Information
- Sales for profit from a personal asset can lead to short-term capital gains.
- The gain is the difference between sale price and the original value.
- Lunch expenses can often be deducted up to a limit.
- Gains on principal residence sales may be taxed as ordinary income.
- Hispanic Americans are often noted for disproportionate tax benefits.
Tips
Ensure to consider tax implications for personal assets, and verify current tax laws regarding deductions and residence sales.
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