TX Tax Law Specialist Practice Questions - Texas Board Certified - Tax Law Exam - TX Tax Law Specialist Practice Questions - Texas Board Certified

Question 1

An unmarried individual has $90,000 of wages, $4,000 of qualified dividends, and $2,000 of municipal bond interest in 2026. Which item is excluded from gross income under the Internal Revenue Code?

The municipal bond interest The wages The qualified dividends All three items are fully taxable

Correct Answer:

The municipal bond interest

Question 2

A cash-method taxpayer performs services in December 2025 and receives a check from the client on December 28, 2025, but does not deposit it until January 3, 2026. When is the income recognized?

2026, when the check is deposited 2025, under the doctrine of constructive receipt Either year, at the taxpayer's election Never, because a check is not cash

Correct Answer:

2025, under the doctrine of constructive receipt

Question 3

An individual sells stock held for 18 months at a $10,000 gain and stock held for 4 months at a $3,000 gain. How is the gain characterized for federal income tax?

$$13,000 long-term capital gain $$13,000 short-term capital gain $$10,000 long-term capital gain and $3,000 short-term capital gain $$13,000 ordinary income

Correct Answer:

$$10,000 long-term capital gain and $3,000 short-term capital gain

Question 4

A taxpayer realizes a $20,000 loss on the sale of stock and, 10 days later, repurchases substantially identical stock. What is the federal tax consequence of the loss?

The loss is fully deductible as a capital loss The loss is deductible but only against ordinary income Half the loss is deductible and half is disallowed The loss is disallowed under the wash-sale rule and added to the basis of the new stock

Correct Answer:

The loss is disallowed under the wash-sale rule and added to the basis of the new stock

Question 5

A single taxpayer has $5,000 of net capital loss for the year after netting all capital gains and losses. How much may be deducted against ordinary income, and what happens to the excess?

$$3,000 deductible currently; $2,000 carried forward indefinitely $$5,000 deductible currently with no carryover $$1,500 deductible currently; $3,500 carried forward 5 years None deductible; the full $5,000 carries forward

Correct Answer:

$$3,000 deductible currently; $2,000 carried forward indefinitely

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About this Exam

Prepare with the TX Tax Law Specialist Practice Questions - Texas Board Certified - Tax Law Exam practice quiz. This question bank includes 100 questions covering taxpayer, income, texas, federal, and corporation. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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TX Tax Law Specialist Practice Questions - Texas Board Certified - Tax Law Exam

This practice set contains 100 questions from the matching question bank and focuses on taxpayer, income, texas, federal, and corporation. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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TX Tax Law Specialist Practice Questions - Texas Board Certified - Tax Law Exam

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