This document contains questions about various tax concepts including: 1) The difference between refundable and non-refundable tax credits. 2) The purpose of the alternative minimum tax and differences between the child credit and child/dependent care credits. 3) Differences between the Lifetime Learning tax credit and American Opportunity tax credit. It also asks about capital assets, ordinary vs capital vs Section 1231 assets, capital gains/losses, depreciation recapture, mid-month convention, and cost recovery deductions.

1. 1.
1)
Explain the difference between refundable and non-refundable
credits?
2.
2)
What is the purpose of the alternative minimum tax?
3.
3)
Mention and explain two differences between Child credit and
Child/dependent care credits?
4.
4)
Discuss two differences between the Lifetime Learning tax
credit and American Education Opportunity tax credit.
1.
5)
What is considered a capital asset for tax purposes?
1.
6)
Explain the difference between ordinary, capital, and Sec. 1231
assets. Why does it matter?
1.
7)
On December 15, 2012, Mark sold for $6,200 share of stock she
had acquired for $XY,000 on November 18, 2011. On November
14, 2012, she sold for $YX,000 shares of stock she had acquired
for $12,000 on October 14, 2011.

2. a.
What was the amount and nature of Mark net gain/loss?
b.
How much was included/deductible in 2012?
2.
8)
HTP Incorporated had a net long-term capital gain of $XY,000
and a net short-term capital loss of $75,000 in 2013. Discuss the
tax consequences of these transactions.
1.
9)
Compare and contrast the similarities between start-up costs and
organizational expenditures.
2.
10)
What is Congress’s rationale for depreciation recapture?
3.
11)
What does mid-month convention mean?
4.
12)
Jane acquired a building on March 2, 1990, for $XY0,000.
a.
What is the cost recovery for the building in 2015 if the
building is classified as nonresidential real estate?

3. b.
If the building is sold on October 30, 2015 for $YX0,000, what
is the cost recovery deduction?