FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Individuals As Employees and Proprietors

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 91

True/False

Review LaterAdd Note

Review Later

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.

A) True
B) False

Correct Answer

verified

Show Answer

Question 92

True/False

Review LaterAdd Note

Review Later

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

A) True
B) False

Correct Answer

verified

Show Answer

Question 93

Essay

Review LaterAdd Note

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.

A taxpayer who lives and works in Kansas City is sent to Chicago on an eight-day business trip.While in Chicago, taxpayer uses the hotel valet service to have some laundry done.The valet charge is a nondeductible personal travel expense.

Fresh Bakery often has unsold donuts at the end of the day.The bakery allows employees to take the leftovers home.The employees are not required to recognize gross income because the bakery does not incur any additional cost.

Both traditional and Roth IRAs possess the advantage of tax-free accumulation of income within the plan.

The tax law specifically provides that a taxpayer cannot be temporarily away from home for any period of employment that exceeds one year.

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

Elsie lives and works in Detroit.She is the regional sales manager for a national fast-food chain.Due to unusual developments, she is compelled to work six straight weeks in the Cleveland area.Instead of spending the weekend there, she flies home every Friday night and returns early Monday morning.The cost of coming home for the weekend approximates $600.Had she stayed in Cleveland, deductible meals and lodging would have been $700.How much, if any, may Elsie deduct as to each weekend?

Susan generated $55,000 of net earnings from the conduct of a tax preparation business that she operated during the tax-filing season.She also received wages of $77,000 from her full-time job.Compute the self-employment taxes due for 2017.

Under the regular (actual expense) method, the portion of the office in the home deduction that exceeds the income from the business can be carried over to future years.

Qualified moving expenses of an employee that are not reimbursed are a deduction for AGI.

Allowing for the cutback adjustment (50% reduction for meals and entertainment) , which of the following trips, if any, will qualify for the travel expense deduction?

An education expense deduction may be allowed even if the education results in a promotion or pay raise for the employee.

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.