Question 1

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

Accepted Answer

A) Engine tune-up. 
B) Parking. 
C) Interest on automobile loan. 
D) MACRS depreciation. 
E) None of these. 
A) Engine tune-up. 
B) Parking. 
C) Interest on automobile loan. 
D) MACRS depreciation. 
E) None of these.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

If a business retains someone to provide services,that person may either be an employee or be self-employed (i.e.,independent contractor).
a.What are the tax advantages to the business of having the service provider classified as self-employed?
b.What are the advantages and disadvantages to the service provider of self-employed status?

Accepted Answer

The answer of If a business retains someone to provide...

Question 4

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 5

Which,if any,of the following is an advantage of using the simplified method for determining the office in the home deduction?

Accepted Answer

A) No depreciation on the personal residence has to be computed. 
B) The exclusive use requirement does not have to be met. 
C) Allows the expense to be classified as a deduction for AGI. 
D) Can also be used for a residence that is rented (not owned) by the taxpayer. 
E) None of these. 
A) No depreciation on the personal residence has to be computed. 
B) The exclusive use requirement does not have to be met. 
C) Allows the expense to be classified as a deduction for AGI. 
D) Can also be used for a residence that is rented (not owned) by the taxpayer. 
E) None of these.

Question 6

Rod uses his automobile for both business and personal use and claims the automatic mileage rate for all purposes.During 2017,his mileage was as follows:
​
   
How much can Rod claim for mileage?

Accepted Answer

$5,819 [(8,800 miles × $0.535,

Question 7

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

Accepted Answer

A) Regardless of the amount of a taxpayer's MAGI. 
B) To cover room and board expenses to attend college. 
C) To a married taxpayer filing a separate return. 
D) Even if a taxpayer does claim the standard deduction. 
E) None of these. 
A) Regardless of the amount of a taxpayer's MAGI. 
B) To cover room and board expenses to attend college. 
C) To a married taxpayer filing a separate return. 
D) Even if a taxpayer does claim the standard deduction. 
E) None of these.

Question 8

Match the statements that relate to each other. (Note: Choice L may be used more than once.)
a.Cover charge paid to entertain client at a night club.
b.Deductible even if taxpayer does not take the new job
c.Company picnic sponsored by employer
d.Use of Federal per diem allowance to substantiate meals while in travel status
e.Does not have to be job related
f.Can include cost of car insurance and automobile club dues
g.Distribution from plan is taxable
h.Distribution from plan is not taxable
i.Expatriate (U.S. person who is employed overseas) returns home to retire
j.Taxpayer moves to a new residence 55 miles closer to his present job
k.Country club membership fee
l.Correct match not provided
-Distance test (for moving expenses) not satisfied

Accepted Answer

The answer of Match the statements that relate to each...

Question 9

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 10

Alfredo,a self-employed patent attorney,flew from his home in Chicago to Miami,had lunch alone at the airport,conducted business in the afternoon,and returned to Chicago in the evening.His expenses were as follows:
​
   
What is Alfredo's deductible expense for the trip?

Accepted Answer

$1,002 ($900 + $60 +

Question 11

Logan,Caden,and Olivia are three unrelated parties who claim the standard deduction.All are married and attend Citron University and each pays tuition of $6,100.Of this payment,Logan can claim a deduction of $4,000; Caden a deduction of $2,000; and Olivia no deduction at all.Explain.

Accepted Answer

The most apparent explanation is the lim

Question 12

Regarding the new simplified method of computing the office in the home deduction,comment on the following independent factors.
a. Taxpayer has set aside 400 square feet for use as an office.
b. Taxpayer has repainted and recarpeted the office area.
c. In past years, taxpayer has always taken the deduction using the regular (actual expense) method.
d. The net income from the business is not large.

Accepted Answer

The answer of Regarding the new simplified method of computing...

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

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

Accepted Answer

A) $3,500. 
B) $4,500. 
C) $5,500. 
D) $6,000. 
E) None of these. 
A) $3,500. 
B) $4,500. 
C) $5,500. 
D) $6,000. 
E) None of these.

Question 16

A participant has an adjusted basis of $0 in any nondeductible contributions to a traditional IRA.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 19

Isabella is a dental hygienist who works for five different dentists.She spends one day a week (i.e.,Monday through Friday) with each.All of the dentists except Dr.Stanki (the Wednesday assignment) treat her as an employee.Dr.Stanki,however,classifies her as being self-employed.Comment on this discrepancy in treatment.

Accepted Answer

Unless Isabella's Wednesday duties are s

Question 20

A taxpayer just changed jobs and incurred unreimbursed moving expenses.
a.What are his (or her) options if an income tax return has to be filed before the time test is met?
b.What happens if the moving expense deduction has been claimed and the time test is not later satisfied?

Accepted Answer

The answer of A taxpayer just changed jobs and incurred...

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

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

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

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

Which,if any,of the following is an advantage of using the simplified method for determining the office in the home deduction?

Rod uses his automobile for both business and personal use and claims the automatic mileage rate for all purposes.During 2017,his mileage was as follows: ​ How much can Rod claim for mileage?

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

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

Alfredo,a self-employed patent attorney,flew from his home in Chicago to Miami,had lunch alone at the airport,conducted business in the afternoon,and returned to Chicago in the evening.His expenses were as follows: ​ What is Alfredo's deductible expense for the trip?

Logan,Caden,and Olivia are three unrelated parties who claim the standard deduction.All are married and attend Citron University and each pays tuition of $6,100.Of this payment,Logan can claim a deduction of $4,000; Caden a deduction of $2,000; and Olivia no deduction at all.Explain.

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

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

A participant has an adjusted basis of $0 in any nondeductible contributions to a traditional IRA.

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

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

A taxpayer just changed jobs and incurred unreimbursed moving expenses. a.What are his (or her) options if an income tax return has to be filed before the time test is met? b.What happens if the moving expense deduction has been claimed and the time test is not later satisfied?

An Introduction to Taxation and Understanding the Federal 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 Nontaxable Exchanges

Property Transactions, capital Gains and Losses, sec1231, 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 Reorganization

Partnerships

S Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

Filters

Rod uses his automobile for both business and personal use and claims the automatic mileage rate for all purposes.During 2017,his mileage was as follows: How much can Rod claim for mileage?

Alfredo,a self-employed patent attorney,flew from his home in Chicago to Miami,had lunch alone at the airport,conducted business in the afternoon,and returned to Chicago in the evening.His expenses were as follows: What is Alfredo's deductible expense for the trip?

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