Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

On their birthdays,Lily sends gift certificates (each valued at $25) to Caden (a key client) and to each of Caden's two minor children.Lily can deduct only $25 as to these gifts.

Accepted Answer

A) True 
 B)False

Question 3

Compare a § 401(k) plan with an IRA.

Accepted Answer

An instructor can use Concept Summary 19

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The § 222 deduction for tuition and related expenses is available:

Accepted Answer

A) Only if the taxpayer itemizes deductions from AGI. 
B) To deduct that portion of the tuition in excess of that allowed under the lifetime learning credit. 
C) To cover the tuition of a son who does not qualify as taxpayer's dependent. 
D) Only if job related. 
E) None of these. 
A) Only if the taxpayer itemizes deductions from AGI. 
B) To deduct that portion of the tuition in excess of that allowed under the lifetime learning credit. 
C) To cover the tuition of a son who does not qualify as taxpayer's dependent. 
D) Only if job related. 
E) None of these.

Question 6

Madison is an instructor of fine arts at a local community college.If she spends $600 (not reimbursed) on art supplies for her classes,$250 of this amount can be claimed as a deduction for AGI.

Accepted Answer

A) True 
 B)False

Question 7

A taxpayer who claims the standard deduction will not avoid the 2% floor on unreimbursed employee expenses.

Accepted Answer

A) True 
 B)False

Question 8

Rachel is single and has a college degree in finance.She is employed as a loan officer at a bank;her yearly AGI approximates $50,000.During the year,she enrolled in a weekend MBA program and incurred the following nonreimbursed expenses: $4,100 (tuition),$300 (books),$200 (other school supplies),and $200 (transportation to and from campus).Disregarding the 2%-of-AGI limitation,as to the MBA program,Rachel has a:

Accepted Answer

A) Deduction for and deduction from AGI of $0. 
B) Deduction for AGI of $4,000 and deduction from AGI of $800. 
C) Deduction for AGI of $4,000 and deduction from AGI of $700. 
D) Deduction for AGI of $4,100 and deduction from AGI of $700. 
E) None of these. 
A) Deduction for and deduction from AGI of $0. 
B) Deduction for AGI of $4,000 and deduction from AGI of $800. 
C) Deduction for AGI of $4,000 and deduction from AGI of $700. 
D) Deduction for AGI of $4,100 and deduction from AGI of $700. 
E) None of these.

Question 9

Aaron is a self-employed practical nurse who works out of his home.He provides nursing care for disabled persons living in their residences.During the day he drives his car as follows. Miles 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:

Accepted Answer

A) 10 miles. 
B) 12 miles. 
C) 20 miles. 
D) 22 miles. 
E) 32 miles. 
A) 10 miles. 
B) 12 miles. 
C) 20 miles. 
D) 22 miles. 
E) 32 miles.

Question 10

After graduating from college with a degree in chemistry,Alberto obtains a job as a chemist with DuPont.Alberto's job search expenses qualify as deductions.

Accepted Answer

A) True 
 B)False

Question 11

Concerning the deduction for moving expenses,what circumstances,if any,will excuse a taxpayer from meeting the time test of 39 or 78 weeks?

Accepted Answer

The time test will be disregarded if the

Question 12

In terms of meeting the distance test for purposes of deducting moving expenses,which of the following statements is correct?

Accepted Answer

A) The taxpayer's new job location must be at least 50 miles away from the old job. 
B) The taxpayer's new residence must be at least 50 miles away from the new job. 
C) The taxpayer's new residence must be at least 50 miles away from the old residence. 
D) The taxpayer's new job location must be at least 50 miles farther from the old residence than the old residence was to the old job. 
E) None of these. 
A) The taxpayer's new job location must be at least 50 miles away from the old job. 
B) The taxpayer's new residence must be at least 50 miles away from the new job. 
C) The taxpayer's new residence must be at least 50 miles away from the old residence. 
D) The taxpayer's new job location must be at least 50 miles farther from the old residence than the old residence was to the old job. 
E) None of these.

Question 13

For the current year,Wilbur is employed as a deputy sheriff of a county.He has AGI of $50,000 and the following unreimbursed employee expenses: Attendance at a law enforcement conference ($800 for travel and $220 for meals) $1,020 Uniforms (does not include $300 for laundry and dry cleaning) 1,000 Professional dues and journals 300 Contribution to sheriff's reelection campaign (highly recommended by Wilbur's boss) 400 ​ How much of these expenses are allowed as deductions from AGI?

Accepted Answer

$1,510.$910 + $1,300 + $300 = $2,510 - (

Question 14

A taxpayer who lives and works in Tulsa travels to Buffalo for five days.If three days are spent on business and two days are spent on visiting relatives,only 60% of the airfare is deductible.

Accepted Answer

A) True 
 B)False

Question 15

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 ​ Corey's deductible mileage is:

Accepted Answer

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.

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

On their birthdays,Lily sends gift certificates (each valued at $25) to Caden (a key client) and to each of Caden's two minor children.Lily can deduct only $25 as to these gifts.

Compare a § 401(k) plan with an IRA.

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

The § 222 deduction for tuition and related expenses is available:

Madison is an instructor of fine arts at a local community college.If she spends $600 (not reimbursed) on art supplies for her classes,$250 of this amount can be claimed as a deduction for AGI.

A taxpayer who claims the standard deduction will not avoid the 2% floor on unreimbursed employee expenses.

After graduating from college with a degree in chemistry,Alberto obtains a job as a chemist with DuPont.Alberto's job search expenses qualify as deductions.

Concerning the deduction for moving expenses,what circumstances,if any,will excuse a taxpayer from meeting the time test of 39 or 78 weeks?

In terms of meeting the distance test for purposes of deducting moving expenses,which of the following statements is correct?

A taxpayer who lives and works in Tulsa travels to Buffalo for five days.If three days are spent on business and two days are spent on visiting relatives,only 60% of the airfare is deductible.

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 Corey's deductible mileage is:

An Introduction to Taxation and Understanding the Tax Law

Working With the Tax Law

Computing the Tax

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

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, basis Considerations, and Nontaxabl

Property Transactions: Capital Gains and Losses, section 1231 and Recapture Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

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

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

On their birthdays,Lily sends gift certificates (each valued at $25) to Caden (a key client) and to each of Caden's two minor children.Lily can deduct only $25 as to these gifts.

Compare a § 401(k) plan with an IRA.

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

The § 222 deduction for tuition and related expenses is available:

Madison is an instructor of fine arts at a local community college.If she spends $600 (not reimbursed) on art supplies for her classes,$250 of this amount can be claimed as a deduction for AGI.

A taxpayer who claims the standard deduction will not avoid the 2% floor on unreimbursed employee expenses.

After graduating from college with a degree in chemistry,Alberto obtains a job as a chemist with DuPont.Alberto's job search expenses qualify as deductions.

Concerning the deduction for moving expenses,what circumstances,if any,will excuse a taxpayer from meeting the time test of 39 or 78 weeks?

In terms of meeting the distance test for purposes of deducting moving expenses,which of the following statements is correct?

A taxpayer who lives and works in Tulsa travels to Buffalo for five days.If three days are spent on business and two days are spent on visiting relatives,only 60% of the airfare is deductible.

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 ​ Corey's deductible mileage is:

An Introduction to Taxation and Understanding the Tax Law

Working With the Tax Law

Computing the Tax

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

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, basis Considerations, and Nontaxabl

Property Transactions: Capital Gains and Losses, section 1231 and Recapture Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

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 Corey's deductible mileage is: