Question 1

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 2

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

Accepted Answer

A)  Parking fines incurred during business use of a car. 
B)  Interest expense on a car loan (taxpayer is self-employed). 
C)  Auto insurance. 
D)  Auto club dues. 
E)  None of the above. 
A)  Parking fines incurred during business use of a car. 
B)  Interest expense on a car loan (taxpayer is self-employed). 
C)  Auto insurance. 
D)  Auto club dues. 
E)  None of the above.

Question 3

Felicia, a recent college graduate, is employed as an accountant by an oil company. She would like to continue her education and obtain a law degree. Discuss Felicia's tax status if she attends a local law school on a:
a. Part-time basis.
b. Full-time basis.

Accepted Answer

a. Regarding the usual education expense

Question 4

Sue performs services for Lynn. Regarding this arrangement, use the legend provided to classify each statement.
a. Indicates employee status.
b. Indicates independent contractor status.
-The services are performed at Sue's premises.

Accepted Answer

The answer of Sue performs services for Lynn. Regarding this...

Question 5

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 6

Which is not an advantage of a § 401(k) plan over a traditional IRA?

Accepted Answer

A)  Deduction limitation. 
B)  Early withdrawal option without penalty. 
C)  Loans from the plan. 
D)  Record keeping. 
E)  All of the above are advantages of § 401(k) plan. 
A)  Deduction limitation. 
B)  Early withdrawal option without penalty. 
C)  Loans from the plan. 
D)  Record keeping. 
E)  All of the above are advantages of § 401(k) plan.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A taxpayer who claims the standard deduction may be able to claim an office in the home deduction.

Accepted Answer

A) True 
 B)False

Question 9

Arnold is employed as an assistant manager in the furniture division of a national chain of department stores. He is a recent college graduate with a degree in marketing. During 2018, he enrolls in the evening MBA program of a local university and incurs the following expenses: tuition, $4,200? books and computer supplies, $800? transportation expense to and from the university, $450? and meals while on campus, $400. Arnold is single and his annual AGI is $64,000. As to these expenses, what is Arnold's deduction for AGI?

Accepted Answer

$4,000. Although the

Question 10

How are combined business/pleasure trips treated for travel within the United States as opposed to foreign travel?

Accepted Answer

The major difference is that transportat

Question 11

Contributions to a Roth IRA can be made up to the due date (excluding extensions) of the taxpayer's income tax return.

Accepted Answer

A) True 
 B)False

Question 12

Lloyd, a practicing CPA, pays tuition to attend law school. Since a law degree involves education leading to a new trade or business, the tuition is not deductible.

Accepted Answer

A) True 
 B)False

Question 13

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

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

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

Felicia, a recent college graduate, is employed as an accountant by an oil company. She would like to continue her education and obtain a law degree. Discuss Felicia's tax status if she attends a local law school on a: a. Part-time basis. b. Full-time basis.

Sue performs services for Lynn. Regarding this arrangement, use the legend provided to classify each statement. a. Indicates employee status. b. Indicates independent contractor status. -The services are performed at Sue's premises.

Which is not an advantage of a § 401(k) plan over a traditional IRA?

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

A taxpayer who claims the standard deduction may be able to claim an office in the home deduction.

How are combined business/pleasure trips treated for travel within the United States as opposed to foreign travel?

Contributions to a Roth IRA can be made up to the due date (excluding extensions) of the taxpayer's income tax return.

Lloyd, a practicing CPA, pays tuition to attend law school. Since a law degree involves education leading to a new trade or business, the tuition is not deductible.

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

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, Section 1231, and Recapture Provisions

Taxing Business Income

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

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

Filters

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

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

Felicia, a recent college graduate, is employed as an accountant by an oil company. She would like to continue her education and obtain a law degree. Discuss Felicia's tax status if she attends a local law school on a: a. Part-time basis. b. Full-time basis.

Sue performs services for Lynn. Regarding this arrangement, use the legend provided to classify each statement. a. Indicates employee status. b. Indicates independent contractor status. -The services are performed at Sue's premises.

Which is not an advantage of a § 401(k) plan over a traditional IRA?

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

A taxpayer who claims the standard deduction may be able to claim an office in the home deduction.

How are combined business/pleasure trips treated for travel within the United States as opposed to foreign travel?

Contributions to a Roth IRA can be made up to the due date (excluding extensions) of the taxpayer's income tax return.

Lloyd, a practicing CPA, pays tuition to attend law school. Since a law degree involves education leading to a new trade or business, the tuition is not deductible.

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

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, Section 1231, and Recapture Provisions

Taxing Business Income

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

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

Filters