Question 1

A moving expense deduction is not allowed if at the time of the move the taxpayer did not have a job at the new location.

Accepted Answer

A) True 
 B)False

Question 2

If a business retains someone to provide services,that person may either be an employee or be self-employed (i.e. ,independent contractor).

Accepted Answer

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

Question 3

In contrasting the reporting procedures of employees and self-employed persons regarding job-related transactions,which of the following items involve self-employed?

Accepted Answer

A) Form 2106. 
B) Schedule C of Form 1040. 
C) Form W-2. 
D) Schedule A of Form 1040. 
E) None of the above. 
A) Form 2106. 
B) Schedule C of Form 1040. 
C) Form W-2. 
D) Schedule A of Form 1040. 
E) None of the above.

Question 4

In the case of an office in the home deduction,the exclusive business use test does not apply when the home is used as a daycare center.

Accepted Answer

A) True 
 B)False

Question 5

Distributions from a Roth IRA that are subject to taxation are treated first as from earnings and last as from contributions.

Accepted Answer

A) True 
 B)False

Question 6

One indicia of independent contractor (rather than employee)status is when the individual performing the services is paid based on time spent (rather than tasks performed).

Accepted Answer

A) True 
 B)False

Question 7

Ramon and Ingrid work in the field of public relations and incur sizable entertainment expenses.Ramon is employed by a consumer products company,while Ingrid is a self-employed consultant.Regarding the tax treatment of the entertainment expenses,when would:

Accepted Answer

The answer of Ramon and Ingrid work in the field...

Question 8

If an individual is ineligible to make a deductible contribution to a traditional IRA,nondeductible contributions can be made to a traditional IRA.

Accepted Answer

A) True 
 B)False

Question 9

Statutory employees:

Accepted Answer

A) Report their expenses on Form 2106. 
B) Include common law employees. 
C) Are subject to income tax withholdings. 
D) Claim their expenses as deductions from AGI. 
E) None of the above. 
A) Report their expenses on Form 2106. 
B) Include common law employees. 
C) Are subject to income tax withholdings. 
D) Claim their expenses as deductions from AGI. 
E) None of the above.

Question 10

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

Accepted Answer

A) $53. 
B) $73. 
C) $78. 
D) $98. 
E) None of the above. 
A) $53. 
B) $73. 
C) $78. 
D) $98. 
E) None of the above.

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Brian makes gifts as follows:
   * Includes $2 for engraving
Presuming adequate substantiation and no reimbursement,how much may Brian deduct?

Accepted Answer

$52 ($27 + $25).The deduction for Mr.Bro

Question 15

In terms of income tax treatment,what is the difference between common law and statutory employees?

Accepted Answer

Although subject to Social Security tax,

Question 16

Regarding § 222 (qualified higher education deduction for tuition and related expenses),comment on the following:

Accepted Answer

The answer of Regarding § 222 (qualified higher education deduction...

Question 17

Unfortunately,the IRS will not issue advanced rulings as to whether a worker's status is that of an employee or an independent contractor.

Accepted Answer

A) True 
 B)False

Question 18

The work-related expenses of an independent contractor will be subject to the 2%-of-AGI floor.

Accepted Answer

A) True 
 B)False

Question 19

If the cost of uniforms is deductible,their maintenance cost (e.g. ,laundry,dry cleaning,alterations)also is deductible.

Accepted Answer

A) True 
 B)False

Question 20

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 avoid the self-employment tax. 
B) To claim unreimbursed work-related expenses as a deduction for AGI. 
C) To avoid the cutback adjustment on unreimbursed business entertainment expenses. 
D) To avoid the 2%-of-AGI floor on unreimbursed work-related expenses. 
E) None of the above. 
A) To avoid the self-employment tax. 
B) To claim unreimbursed work-related expenses as a deduction for AGI. 
C) To avoid the cutback adjustment on unreimbursed business entertainment expenses. 
D) To avoid the 2%-of-AGI floor on unreimbursed work-related expenses. 
E) None of the above.

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

A moving expense deduction is not allowed if at the time of the move the taxpayer did not have a job at the new location.

If a business retains someone to provide services,that person may either be an employee or be self-employed (i.e. ,independent contractor).

In contrasting the reporting procedures of employees and self-employed persons regarding job-related transactions,which of the following items involve self-employed?

In the case of an office in the home deduction,the exclusive business use test does not apply when the home is used as a daycare center.

Distributions from a Roth IRA that are subject to taxation are treated first as from earnings and last as from contributions.

One indicia of independent contractor (rather than employee)status is when the individual performing the services is paid based on time spent (rather than tasks performed).

Ramon and Ingrid work in the field of public relations and incur sizable entertainment expenses.Ramon is employed by a consumer products company,while Ingrid is a self-employed consultant.Regarding the tax treatment of the entertainment expenses,when would:

If an individual is ineligible to make a deductible contribution to a traditional IRA,nondeductible contributions can be made to a traditional IRA.

Statutory employees:

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

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.

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

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

Brian makes gifts as follows: * Includes $2 for engraving Presuming adequate substantiation and no reimbursement,how much may Brian deduct?

In terms of income tax treatment,what is the difference between common law and statutory employees?

Regarding § 222 (qualified higher education deduction for tuition and related expenses),comment on the following:

Unfortunately,the IRS will not issue advanced rulings as to whether a worker's status is that of an employee or an independent contractor.

The work-related expenses of an independent contractor will be subject to the 2%-of-AGI floor.

If the cost of uniforms is deductible,their maintenance cost (e.g. ,laundry,dry cleaning,alterations)also is deductible.

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

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

Part 1--Property Transactions: Determination of Gain or Loss,basis Considerations,and Nontaxable Exchanges

Part 2--Property Transactions: Determination of Gain or Loss,basis Considerations,and Nontaxable Exchanges

Property Transactions: Capital Gains and Losses,1231,and Recapure Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

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

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

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