Question: 5. What is the difference between a realized gain or loss vs. a recognized gain or loss? Give an example of a taxpayer or tax

5. What is the difference between a realized gain or loss vs. a recognized gain or loss? Give an example of a taxpayer or tax event in which a recognized gain or loss precedes and eventual realized gain or loss?

6. What is the difference between a deduction for AGI vs. a deduction from AGI? Give an example for both in the explanation. 2 | Page Updated : Sep - 2 2

7. In general, what event(s) might cause an IRS examination? Also, what is the impact of interest on Federal tax liability overpayments and underpayments respectively?

8. What is the current standard deduction amounts for the five filing statuses? Inversely what is the difference between itemizing deductions vs. taking a standard deduction? Considering the concepts of adjusted gross income and taxable income, how do the above deductions impact these components of the general tax formula? Of the five filing statuses what is the most notable observation made? And finally, what is the purpose of knowing and understanding the components of the tax formula?

9. What is a Net Operating Loss and what are the carryforward and carryback rules behind the application of NOL accruals to future and past tax liability years?

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