Jane and Joan Decide to Open a Plumbing Business

question 80

Multiple Choice

Jane and Joan decide to open a plumbing business.Both contribute money to the business,but because Jane has expertise in plumbing,Joan allows Jane to make all the management decisions.Joan will not participate in much of the day-to-day operations,but could do so if she wanted to.Jane and Joan will split net income equally.Jane and Joan make no filings associated with this business.This enterprise is:

• A) a general partnership.
• B) not a general partnership, because there is no association of two or more people.
• C) not a general partnership, because they are not carrying on a trade or business.
• D) not a general partnership, because they do not co-own the business.
• E) not a general partnership, because Joan does not have management responsibilities.

Identify eligibility for the credit for the elderly or the disabled based on age, AGI, and filing status.

Calculate the premium tax credit for health insurance purchased through the Marketplace.

Understand the conditions and limits of the earned income credit (EIC) for taxpayers with and without children.

Recognize the application and calculation of foreign tax credits to avoid double taxation.

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Definitions:

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