Exam 9: Employee Expenses and Deferred Compensation

All of the following are allowed a "For AGI" deduction except:

What two conditions are necessary for moving expenses to be deductible?

In determining whether travel expenses are deductible, a general rule is that if a person is reassigned for an indefinite period, the individual's tax home shifts to the new location and travel expenses are not deductible.

A qualified pension plan requires that employer-provided benefits must be 100 percent vested after five years of service.

In-home office expenses which are not deductible in the year in which the costs were incurred due to limitations may be carried forward to subsequent years.

Martin Corporation granted an incentive stock option to employee Caroline on January 1, 2011. The option price was $150, and the FMV of the Martin stock was also $150 on the grant date. The option allowed Caroline to purchase 160 shares of Martin stock. Caroline exercised the option on August 1, 2013 when the stock's FMV was $250. Unless otherwise stated, assume Caroline is a qualifying employee. If Caroline sells the stock on September 5, 2014 for $350 per share, she must recognize (ignore alternative minimum tax)

Gambling losses are miscellaneous itemized deductions subject to the 2% of AGI floor.

Self-employed individuals receive a for AGI deduction for 50% of entertainment expenses paid or incurred in the trade or business.

David acquired an automobile for $30,000 for use in his unincorporated business in 2011 and used the standard mileage rate method in 2012 and 2013. He switches to the actual expense method for 2014. The automobile was used 25,000 miles in 2012 and 20,000 miles in 2013. What is the amount of the adjusted basis of the automobile for purposes of computing depreciation in 2014?

Rita, a single employee with AGI of $100,000 before consideration of the items below, incurred the following expenses during the year, all of which were unreimbursed unless otherwise indicated: In addition, Rita paid $300 for dues to her professional business association. The company reimbursed her after she submitted the appropriate documentation. What is Rita's net miscellaneous itemized deduction for the year after application of all relevant limitations?

Martin Corporation granted a nonqualified stock option to employee Caroline on January 1, 2011. The option price was $150, and the FMV of the Martin stock was also $150 on the grant date. The option allowed Caroline to purchase 1,000 shares of Martin stock. The option itself does not have a readily ascertainable FMV. Caroline exercised the option on August 1, 2014 when the stock's FMV was $250. Caroline sells the stock on September 5, 2015 for $300 per share. Martin Corporation will be allowed a deduction of

In which of the following situations is the taxpayer not allowed a deduction for moving expenses?

During 2014, Marcia, who is single and is covered under a pension plan at work, contributes $5,500 into a Roth IRA. If her AGI is $64,000, which of the following is true?

Matt is a sales representative for a local company. He entertains customers as part of his job. During the current year he spends $3,000 on business entertainment. The company provides him an expense allowance of $2,000 under a nonaccountable plan. How will Matt treat the $2,000 partial reimbursement and the $3,000 entertainment expense?

In-home office expenses are deductible if the office is used exclusively on a regular basis as the principal place of business for any trade or business of the taxpayer.

Commuting to and from a job location is a deductible expense.

An employer-employee relationship exists where the employer has the right to control and direct the individual providing services with regard to the end result and the means by which the result is accomplished.

Educational expenses incurred by a bookkeeper for courses necessary to sit for the CPA exam are fully deductible.

H (age 50)and W (age 48)are married but only W is employed. She is not covered by a retirement plan at work. She earns $75,000 during the year and they have combined AGI of $78,000 before any IRA contribution. In 2014, the maximum amount together they may contribute to tax deductible IRAs is

Feng, a single 40 year old lawyer, is covered by a qualified retirement at work. His salary is $109,000, and his total AGI is $123,000. The maximum contribution he can make to a Roth IRA in 2014 is