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Topic 20 - Dividends, Interest and Investment Income

Student instructions: 

You may need acrobat reader to download forms and publications online.

Please use IRS Publication 550 and California 540A / 540 Booklet to complete this topic.

Prepare  Form 1040, Form 4952 , Schedule A, Schedule B and California Form 540.

Raul Beltran needs to prepare his taxes. He is an unmarried investor and has borrowed money to invest in ABC Company. The total investment interest expense from borrowed funds was a total of $14,000 for tax year 2007.

Raul received the following:

bulletThe income received in 2007 for investing in this venture was $6,000 in dividends.

Raul had no other items to itemize and he has no dependents. He paid $7,200 of rent for the entire year. All information on W-2 is current.

 

 Have your return prepared and ready to answer the questions. Choose one of the following two options:

Option 1: Complete Quiz online.

Instructions to submit quiz successfully: Step-by-Step check list

When prompted for your name, please enter your CTEC or Preparer Number (if you have a number) with your name as follows:  First, last name, Number (e.g. John Smith A012345 / John Smith P012345)

Print questions

Start quiz

Option 2: Complete and mail answer sheet.

If you choose not to complete the quiz by pressing "Start quiz" above, you can print questions and answer-sheet to mail to us. If you complete the online quiz, the advantage is that you get an automatic score as apposed to waiting for a response on a manually graded quiz. You can also print the questions and answer sheet and after you answered the questions on paper submit it online by choosing "Start Quiz" above.  Please don't sent answer sheet by certified mail.

Print questions        Print Answer sheet

Please Note: You must also complete the tax return for this assignment. If you turn in incomplete work, such as purposely not answering the questions regarding the return you prepared, you will not be given credit for the topic.

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Revised: 02/16/15

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