Ralph made the following business gifts during the year. $\begin{array}{lr} \text { To Robert (a key client) at Christmas } & \$ 50 \\ \text { To Angel (Robert's 8-year old daughter) on her birthday } & 20 \\ \text { To Art (Ralph's secretary) on his birthday (\$3 was for gift wrapping) } & 30 \\ \text { To Paige (Ralph's boss) at Christmas } & 40 \end{array}$ Presuming proper substantiation, Ralph's deduction is:

A) $0. B) $53. C) $73. D) $78. E) $98. A) $0. B) $53. C) $73. D) $78. E) $98.

A) Report their expenses as miscellaneous itemized deductions. B) Include common law employees. C) Are subject to income tax withholdings. D) Claim their expenses as deductions for AGI. E) None of these. A) Report their expenses as miscellaneous itemized deductions. B) Include common law employees. C) Are subject to income tax withholdings. D) Claim their expenses as deductions for AGI. E) None of these.

Corey is the city sales manager for RIBS, a national fast food franchise.Every working day, Corey drives his car as follows: \[\begin{array} { l c } & \text { Miles } \\ \text { Home to office } & 20 \\ \text { Office to RIBS No. } 1 & 15 \\ \text { RIBS No. } 1 \text { to No. } 2 & 18 \\ \text { RIBS No. } 2 \text { to No. } 3 & 13 \\ \text { RIBS No. } 3 \text { to home } & 30 \end{array}\] \[\begin{array} { l c } & \text { Miles } \\ \text { Home to office } & 20 \\ \text { Office to RIBS No. } 1 & 15 \\ \text { RIBS No. } 1 \text { to No. } 2 & 18 \\ \text { RIBS No. } 2 \text { to No. } 3 & 13 \\ \text { RIBS No. } 3 \text { to home } & 30 \end{array}\] Corey renders an adequate accounting to his employer.As a result, Corey's reimburseable mileage is:

A) 0 miles. B) 50 miles. C) 66 miles. D) 76 miles. E) None of these. A) 0 miles. B) 50 miles. C) 66 miles. D) 76 miles. E) None of these.

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

For tax year 2019, Taylor used the simplified method of determining her office in the home deduction.For 2020, Taylor must continue to use the simplified method and cannot switch to the regular (actual expense) method.

(True/False)

4.8/5

(42)

Question 41

Ralph made the following business gifts during the year. To Robert (a key client) at Christmas \ 50 To Angel (Robert's 8-year old daughter) on her birthday 20 To Art (Ralph's secretary) on his birthday ( \3 was for gift wrapping) 30 To Paige (Ralph's boss) at Christmas 40 Presuming proper substantiation, Ralph's deduction is:

(Multiple Choice)

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(39)

Question 42

Aiden performs services for Lucas.Which of the following factors indicates that Aiden is an employee rather than an independent contractor?

(Multiple Choice)

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(42)

Question 43

Employees who render an adequate accounting to employers and are fully reimbursed will shift the 50% overall limitation on meal expenses to their employer.

(True/False)

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(44)

Question 44

Ethan, a bachelor with no immediate family, uses Pine Shadows Country Club exclusively for his business entertaining.All of Ethan's annual dues for his club membership are deductible.

(True/False)

4.9/5

(35)

Question 45

Once the actual cost method is used, a taxpayer cannot change to the automatic mileage method in a later year.

(True/False)

4.9/5

(39)

Question 46

Janet works at Green Company's call center.If Janet's compensation is based on the number of calls she handles, she is an independent contractor.

(True/False)

4.9/5

(34)

Question 47

Which of the following expenses, if any, qualify as deductible?

(Multiple Choice)

5.0/5

(30)

Question 48

Statutory employees:

(Multiple Choice)

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Question 49

Flamingo Corporation furnishes meals at cost to its employees at a cafeteria it maintains.The cost of operating the cafeteria is not subject to the overall limitation (50%).

(True/False)

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(37)

Question 50

A self-employed taxpayer who lives and works in Kansas City travels to Chicago on an eight-day business trip. While in Chicago, the taxpayer uses the hotel valet service to have some laundry done.The valet charge is a nondeductible personal travel expense.

(True/False)

5.0/5

(40)

Question 51

By itself, credit card receipts will not constitute adequate substantiation for travel expenses.

(True/False)

4.9/5

(46)

Question 52

In some cases, it may be appropriate for a taxpayer to deduct work-related expenses as both a sole proprietor and an employee.

(True/False)

4.8/5

(41)

Question 53

Under the deemed substantiation method of accounting for expenses, what is the maximum amount taxpayers are allowed as a deduction without being required to substantiate the amount of the expenses?

(Multiple Choice)

4.9/5

(30)

Question 54

A statutory employee is not a common law employee but is subject to Social Security tax.

(True/False)

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(32)

Question 55

Corey is the city sales manager for RIBS, a national fast food franchise.Every working day, Corey drives his car as follows: Miles Home to office 20 Office to RIBS No. 1 15 RIBS No. 1 to No. 2 18 RIBS No. 2 to No. 3 13 RIBS No. 3 to home 30 Miles Home to office 20 Office to RIBS No. 1 15 RIBS No. 1 to No. 2 18 RIBS No. 2 to No. 3 13 RIBS No. 3 to home 30 Corey renders an adequate accounting to his employer.As a result, Corey's reimburseable mileage is:

(Multiple Choice)

4.9/5

(41)

Question 56

Which of the following, if any, is subject to an overall limitation on meals?

(Multiple Choice)

4.9/5

(37)

Question 57

For self-employed taxpayers, travel expenses are deductions for AGI.

(True/False)

4.9/5

(40)

Question 58

Which of the following factors, if any, is not a characteristic of independent contractor status?

(Multiple Choice)

4.8/5

(46)

Question 59

For tax purposes, a statutory employee is treated the same way as a common law employee.

(True/False)

4.8/5

(38)

Question 60

Showing 41 - 60 of 92

For tax year 2019, Taylor used the simplified method of determining her office in the home deduction.For 2020, Taylor must continue to use the simplified method and cannot switch to the regular (actual expense) method.

Aiden performs services for Lucas.Which of the following factors indicates that Aiden is an employee rather than an independent contractor?

Employees who render an adequate accounting to employers and are fully reimbursed will shift the 50% overall limitation on meal expenses to their employer.

Ethan, a bachelor with no immediate family, uses Pine Shadows Country Club exclusively for his business entertaining.All of Ethan's annual dues for his club membership are deductible.

Once the actual cost method is used, a taxpayer cannot change to the automatic mileage method in a later year.

Janet works at Green Company's call center.If Janet's compensation is based on the number of calls she handles, she is an independent contractor.

Which of the following expenses, if any, qualify as deductible?

Statutory employees:

Flamingo Corporation furnishes meals at cost to its employees at a cafeteria it maintains.The cost of operating the cafeteria is not subject to the overall limitation (50%).

A self-employed taxpayer who lives and works in Kansas City travels to Chicago on an eight-day business trip. While in Chicago, the taxpayer uses the hotel valet service to have some laundry done.The valet charge is a nondeductible personal travel expense.

By itself, credit card receipts will not constitute adequate substantiation for travel expenses.

In some cases, it may be appropriate for a taxpayer to deduct work-related expenses as both a sole proprietor and an employee.

Under the deemed substantiation method of accounting for expenses, what is the maximum amount taxpayers are allowed as a deduction without being required to substantiate the amount of the expenses?

A statutory employee is not a common law employee but is subject to Social Security tax.

Which of the following, if any, is subject to an overall limitation on meals?

For self-employed taxpayers, travel expenses are deductions for AGI.

Which of the following factors, if any, is not a characteristic of independent contractor status?

For tax purposes, a statutory employee is treated the same way as a common law employee.

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Tax Formula and Tax Determination an Overview of Property Transactions

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Alternative Minimum Tax

Tax Credits and Payment Procedures

Property Transactions: Determination of Gain or Loss and Basic Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: Section 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters