Exam 9: Deductions: Employee and Self-Employed-Related Expenses

The tax law specifically provides that a taxpayer cannot be temporarily away from home for any period of employment that exceeds one year.

Code § 199A permits an individual to deduct 25% of the qualified business income generated through a sole proprietorship, a partnership, or an S corporation.

In contrasting the reporting procedures of employees and self-employed persons regarding job-related transactions, which of the following items involve people who are self-employed?

In the case of an office in the home deduction, the exclusive business use test does not apply when the home is used as a daycare center.

Jackson gives both his supervisor and her husband a $30 box of chocolates at Christmas.Jackson may claim only $25 as a deduction.

One indicator of independent contractor (rather than employee) status is when the individual performing the services is paid based on time spent (rather than on tasks performed).

Qualified moving expenses of an employee that are not reimbursed are a deduction for AGI.

Marvin lives with his family in Alabama.He has two jobs: one in Alabama and one in North Carolina.His tax home is where he lives (Alabama).

Under the actual cost method, which of the following expenses, if any, will not be allowed?

A taxpayer who claims the standard deduction will not be able to claim an office in the home deduction.

If a taxpayer does not own a home but rents an apartment, the office in the home deduction is not available.

For which of the following situations, if any, is the automatic mileage available?

When using the automatic mileage method, which of the following expenses, if any, also can be claimed?

Aaron is a self-employed practical nurse who works from his home.He provides nursing care for disabled persons living in their residences.During the day, he drives his car as follows. Aaron's home to patient Louise 12 Patient Louise to patient Carl 4 Patient Carl to patient Betty 6 Patient Betty to Aaron's home 10 Aaron's deductible mileage for each workday is:

Jordan performs services for Ryan.Which of the following factors, if any, indicates that Jordan is an independent contractor rather than an employee?

During the year, Walt (self-employed) travels from Seattle to Tokyo, Japan, on business.His time was spent as follows: two days travel (one day each way), two days business, and two days personal.His expenses for the trip were as follows (meals and lodging reflect only the business portion): Airfare \ 3,000 Lodging 2,000 Meals 1,000 Presuming no reimbursement, Walt's deductible expenses are:

A qualified trade or business includes any trade or business including providing services as an employee.

A taxpayer who maintains an office in the home to conduct his only business will not have nondeductible commuting expenses.

Qualified business income (QBI) is defined as the ordinary income less ordinary deductions a taxpayer earns from a qualified trade or business (e.g., from a sole proprietorship, S corporation, or partnership) conducted in the United States by the taxpayer.

A worker may prefer to be treated as an independent contractor (rather than an employee) for which of the following reasons: