Home
>
Planning
>
Intermediate
Planning Intermediate:
Tax Sheltering
Test your knowledge
Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
Income earned from wages is taxed as passive income.
Choose wisely. There is only one correct answer.
True
False
False. Income earned from wages is taxed as active income.
2.
Earnings on annuity contributions are tax-free.
Choose wisely. There is only one correct answer.
True
False
False. Earnings on annuity contributions are TAX-DEFERRED until withdrawn.
3.
Losses from a limited partnership can always be deducted from your salary income.
Choose wisely. There is only one correct answer.
True
False
False. Losses from a limited partnership can only be deducted from income earned from passive activity earnings.
4.
Which of the following is not true about Keogh plans?
Choose wisely. There is only one correct answer.
They are retirement plans for the self-employed and their employees.
The plan owner controls the plan's investments.
Earnings may be withdrawn before age 59 1/2 without penalty.
Earnings may be withdrawn before age 59 1/2 without penalty. This is not true of Keogh plans.
5.
In a tax swap, an investor sells a security that has made a capital gain and buys another similar security.
Choose wisely. There is only one correct answer.
True
False
False. In a tax swap, an investor sells a security that has incurred a capital loss and buys another similar security.
Submit
DONE