# 1-22 TRUE OR FALSE A-TRUE B-FALSE 1. One is permitted to legally arrange their financial affairs in a way which results in paying 2. No special election form is needed to qualify as a Sub Chapter S corporation. All you a lower tax. 3. Complex tax returns are most efficiently prepared using computer software 4. The IRS and New York State generally require professional income tax return preparers to electronically submit income tax returns for their clients. dends paid by a'C' company to shareholders are not deductible in arriving at the 5. Divi company's taxable income. 6. A dividend paid from the earmings of a "C company is taxable income to the shareholder. 7. Jonathan lives in Connecticut and works in New York City. His salary income will be taxed by both Connecticut and New York 8. Jonathan can lower his Connecticut tax by claiming a credit for the tax he pays to New York. 9. A one member Limited Liability Company is also referred to as a "disregarded entity 0 10. Professor Klein's lecture are boring. 11. Partnerships are required by law to be formally organized with an operating agreement. 12. Partnerships never have an account on their books for "Retained Earnings ownership interest in a partnership is represented by your CAPITAL ACCOUNT 14. Your ownership interest in any corporation is represented by your RETAINED EARNINGS 15. The General Partner of a partnership is personally liable for all of the debts and obligations of the partnership. 16. All tax items from a partnership "flow thru to the individual partner's personal income tax return. 17. A partner in s partnerghio is taxed on acual distrbutions of cash only, not on ther share of distrlbutive parnerhio income 18. The gift tex annual exclusion is disimed by the donor for small gifis of less than $15,000 per donee 19. The git tax ANNUAL EXCLUSON' apples onlyforgits made to your ddren. 20. The gift and estate tax 1ARTAL DEDUCTION' arty apples to transfers tat a husband makes to witeand not to gits a wle makes to a husband 21.1BM, a US bened putbilicly traded company, may elect to be taxed as an "3' corporation. 22. New York Sae sn icome York State imgoses an income sax on people domiciled in New York and also "statutory residets MULTIPLE CHOICE 23. The stated reason for the FEDERAL ESTATE TAX is A. Break up large accumuliations of family wealth and power B. Provide accountanis and lawyers with tax neturn preparation work. C. Raise revenue for the govemment. D. Give politicians someting to campaign aout. E. Subsidize peopie to eam tarabie income 24. The stated reeson for THE FOREIGN TAX CREDIT is A. Avoidance of double tanation B. Sharing of information betwreen tax authoritles C. Increase overall wond " tax-ue D, B and C E. Allow politicians to compiain about President Trump's tax return