FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

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

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

True/False

Review LaterAdd Note

Review Later

In some cases, it may be appropriate for a taxpayer to deduct work-related expenses as both a sole proprietor and an employee.

A) True
B) False

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

For self-employed taxpayers, travel expenses are deductions for AGI.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Corey is the city sales manager for RIBS, a national fast food franchise.Every working day, Corey drives his car as follows: $\begin{array} { l c } & \text { Miles } \\\text { Home to office } & 20 \\\text { Office to RIBS No. } 1 & 15 \\\text { RIBS No. } 1 \text { to No. } 2 & 18 \\\text { RIBS No. } 2 \text { to No. } 3 & 13 \\\text { RIBS No. } 3 \text { to home } & 30\end{array}$ $\begin{array} { l c } & \text { Miles } \\\text { Home to office } & 20 \\\text { Office to RIBS No. } 1 & 15 \\\text { RIBS No. } 1 \text { to No. } 2 & 18 \\\text { RIBS No. } 2 \text { to No. } 3 & 13 \\\text { RIBS No. } 3 \text { to home } & 30\end{array}$ Corey renders an adequate accounting to his employer.As a result, Corey's reimburseable mileage is:

Which of the following expenses, if any, qualify as deductible?

Statutory employees:

Janet works at Green Company's call center.If Janet's compensation is based on the number of calls she handles, she is an independent contractor.

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

Under the deemed substantiation method of accounting for expenses, what is the maximum amount taxpayers are allowed as a deduction without being required to substantiate the amount of the expenses?

Flamingo Corporation furnishes meals at cost to its employees at a cafeteria it maintains.The cost of operating the cafeteria is not subject to the overall limitation (50%).

For tax year 2019, Taylor used the simplified method of determining her office in the home deduction.For 2020, Taylor must continue to use the simplified method and cannot switch to the regular (actual expense) method.

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

Which of the following, if any, is subject to an overall limitation on meals?

Employees who render an adequate accounting to employers and are fully reimbursed will shift the 50% overall limitation on meal expenses to their employer.

Aiden performs services for Lucas.Which of the following factors indicates that Aiden is an employee rather than an independent contractor?

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

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

Ethan, a bachelor with no immediate family, uses Pine Shadows Country Club exclusively for his business entertaining.All of Ethan's annual dues for his club membership are deductible.

Once the actual cost method is used, a taxpayer cannot change to the automatic mileage method in a later year.

By itself, credit card receipts will not constitute adequate substantiation for travel expenses.

Ralph made the following business gifts during the year. $\begin{array}{lr}\text { To Robert (a key client) at Christmas } & \$ 50 \\\text { To Angel (Robert's 8-year old daughter) on her birthday } & 20 \\\text { To Art (Ralph's secretary) on his birthday (\$3 was for gift wrapping) } & 30 \\\text { To Paige (Ralph's boss) at Christmas } & 40\end{array}$ Presuming proper substantiation, Ralph's deduction is: