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

For the current year,Horton was employed as a deputy sheriff of a county.He had AGI of $50,000 and the following unreimbursed employee expenses: How much of these expenses are allowed as deductions from AGI?

Match the statements that relate to each other.(Note: Choice L may be used more than once.)

The work-related expenses of an independent contractor will not be subject to the 2%-of-AGI floor.

Myra's classification of those who work for her as independent contractors is being questioned by the IRS.It is the position of the IRS that these workers are really employees.What type of factors can Myra utilize to justify her classification?

Every year,Penguin Corporation gives each employee a fruit basket and a bottle of wine at Christmas.These gifts are not subject to the cutback adjustment.

Jacob is a landscape architect who works out of his home.He wonders whether or not he will have nondeductible commuting expenses when he drives to the locations of his clients.Please comment.

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

Tired of her 60 mile daily commute,Margaret purchases a condo that is only five miles from her job.Margaret's moving expenses to her new condo are allowed and can be claimed by her as a deduction.

Ralph made the following business gifts during the year. Presuming proper substantiation,Ralph's deduction is:

Rod uses his automobile for both business and personal use and claims the automatic mileage rate for all purposes.During 2012,his mileage was as follows: How much can Rod claim for mileage?

Henry entertains several of his key clients on January 1 of the current year.Expenses paid by Henry are as follows: Presuming proper substantiation,Henry's deduction is:

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

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.

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

Qualifying job search expenses are deductible even if the taxpayer does not change jobs.

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

In choosing between the actual expense method and the automatic mileage method, a taxpayer should consider the cost of insurance on the automobile.

Taylor performs services for Jonathan on a regular basis.There exists considerable doubt as to whether Taylor is an employee or an independent contractor.

In some cases it may be appropriate for a taxpayer to report work-related expenses by using both Form 2106 and Schedule C.

As to meeting the time test for purposes of deducting moving expenses,which of the following statements is correct?