Question 1

An education expense deduction may be allowed even if the education results in a promotion or pay raise for the employee.

Accepted Answer

A) True 
 B)False

Question 2

After the automatic mileage rate has been set by the IRS for a year, it cannot later be changed by the IRS.

Accepted Answer

A) True 
 B)False

Question 3

A taxpayer who uses the automatic mileage method for the business use of an automobile can change to the actual cost method in a later year.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following expenses, if any, are deductible?

Accepted Answer

A) Safety shoes purchased by a plumber employed by a company. 
B) Bottled water purchased by a gig driver for passengers. 
C) Unreimbursed employee expenses. 
D) Tax return preparation fee paid by a nonemployed retiree. 
E) None of these. 
A) Safety shoes purchased by a plumber employed by a company. 
B) Bottled water purchased by a gig driver for passengers. 
C) Unreimbursed employee expenses. 
D) Tax return preparation fee paid by a nonemployed retiree. 
E) None of these.

Question 5

The Federal per diem rates that can be used for "deemed substantiated" purposes are the same for all locations in the country.

Accepted Answer

A) True 
 B)False

Question 6

Every year, Teal Corporation gives each employee a turkey and a bottle of wine during the December holiday season.These gifts are subject to the 50% limitation.

Accepted Answer

A) True 
 B)False

Question 7

Under the simplified method, the maximum office in the home deduction allowed is the greater of $1,500 or the office square feet × $5.

Accepted Answer

A) True 
 B)False

Question 8

Mallard Corporation pays for a trip to Aruba for its two top salespersons.This expense is subject to the overall limitation (50%).

Accepted Answer

A) True 
 B)False

Question 9

For tax purposes, travel is a broader classification than transportation.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) To claim unreimbursed work-related expenses as a deduction for AGI. 
B) To avoid the self-employment tax. 
C) To avoid the overall limitation (50%) on unreimbursed business entertainment expenses. 
D) To avoid the limitations on unreimbursed work-related expenses. 
E) None of these. 
A) To claim unreimbursed work-related expenses as a deduction for AGI. 
B) To avoid the self-employment tax. 
C) To avoid the overall limitation (50%) on unreimbursed business entertainment expenses. 
D) To avoid the limitations on unreimbursed work-related expenses. 
E) None of these.

Question 11

Both traditional and Roth IRAs possess the advantage of tax-free accumulation of income within the plan.

Accepted Answer

A) True 
 B)False

Question 12

Robert entertains several of his key clients on January 1 of the current year.Expenses that he paid are as follows: $$\begin{array} { l r } 
\text { Cab fare } & \$ 60 \
\text { Cover charge at supper club } & 200 \
\text { Dinner at club } & 800 \
\text { Tips to waiter } & 160
\end{array}$$ Presuming proper substantiation, Robert's deduction is:

Accepted Answer

A) $610. 
B) $640. 
C) $740. 
D) $1,220. 
E) None of these. 
A) $610. 
B) $640. 
C) $740. 
D) $1,220. 
E) None of these.

An education expense deduction may be allowed even if the education results in a promotion or pay raise for the employee.

After the automatic mileage rate has been set by the IRS for a year, it cannot later be changed by the IRS.

A taxpayer who uses the automatic mileage method for the business use of an automobile can change to the actual cost method in a later year.

Which of the following expenses, if any, are deductible?

The Federal per diem rates that can be used for "deemed substantiated" purposes are the same for all locations in the country.

Every year, Teal Corporation gives each employee a turkey and a bottle of wine during the December holiday season.These gifts are subject to the 50% limitation.

Under the simplified method, the maximum office in the home deduction allowed is the greater of $1,500 or the office square feet × $5.

Mallard Corporation pays for a trip to Aruba for its two top salespersons.This expense is subject to the overall limitation (50%).

For tax purposes, travel is a broader classification than transportation.

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

Both traditional and Roth IRAs possess the advantage of tax-free accumulation of income within the plan.

Robert entertains several of his key clients on January 1 of the current year.Expenses that he paid are as follows: Cab fare \ 60 Cover charge at supper club 200 Dinner at club 800 Tips to waiter 160 Presuming proper substantiation, Robert's deduction is:

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

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

An education expense deduction may be allowed even if the education results in a promotion or pay raise for the employee.

After the automatic mileage rate has been set by the IRS for a year, it cannot later be changed by the IRS.

A taxpayer who uses the automatic mileage method for the business use of an automobile can change to the actual cost method in a later year.

Which of the following expenses, if any, are deductible?

The Federal per diem rates that can be used for "deemed substantiated" purposes are the same for all locations in the country.

Every year, Teal Corporation gives each employee a turkey and a bottle of wine during the December holiday season.These gifts are subject to the 50% limitation.

Under the simplified method, the maximum office in the home deduction allowed is the greater of $1,500 or the office square feet × $5.

Mallard Corporation pays for a trip to Aruba for its two top salespersons.This expense is subject to the overall limitation (50%).

For tax purposes, travel is a broader classification than transportation.

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

Both traditional and Roth IRAs possess the advantage of tax-free accumulation of income within the plan.

Robert entertains several of his key clients on January 1 of the current year.Expenses that he paid are as follows: Cab fare \ 60 Cover charge at supper club 200 Dinner at club 800 Tips to waiter 160 Presuming proper substantiation, Robert's deduction is:

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