Question 1

Robert entertains several of his key clients on January 1 of the current year.Expenses that he paid are as follows:   Cab fare $60 Cover charge at supper club 200 Dinner at club 800 Tips to waiter 160\begin{array} { l r } 	ext { Cab fare } & \$ 60 \	ext { Cover charge at supper club } & 200 \	ext { Dinner at club } & 800 \	ext { Tips to waiter } & 160\end{array} Cab fare  Cover charge at supper club  Dinner at club  Tips to waiter ​$60200800160​  Presuming proper substantiation, Robert's deduction is:

Accepted Answer

A)  $610.
B)  $640.
C)  $740.
D)  $1,220.
E)  None of these. F) D) and E)
G) A) and C)

Question 2

Mallard Corporation pays for a trip to Aruba for its two top salespersons.This expense is subject to the overall limitation (50%).

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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 claim unreimbursed work-related expenses as a deduction for AGI.
B)  To avoid the self-employment tax.
C)  To avoid the overall limitation (50%)  on unreimbursed business entertainment expenses.
D)  To avoid the limitations on unreimbursed work-related expenses.
E)  None of these.F) B) and C)
G) A) and D)

Question 5

Which of the following expenses, if any, are deductible?

Accepted Answer

A)  Safety shoes purchased by a plumber employed by a company.
B)  Bottled water purchased by a gig driver for passengers.
C)  Unreimbursed employee expenses.
D)  Tax return preparation fee paid by a nonemployed retiree.
E)  None of these.F) A) and D)
G) All of the above

Question 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

A taxpayer who uses the automatic mileage method for the business use of an automobile can change to the actual cost method in a later year.

Accepted Answer

A) True 
 B)False

Question 9

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 10

The Federal per diem rates that can be used for "deemed substantiated" purposes are the same for all locations in the country.

Accepted Answer

A) True 
 B)False

Question 11

For tax purposes, travel is a broader classification than transportation.

Accepted Answer

A) True 
 B)False

Question 12

Every year, Teal Corporation gives each employee a turkey and a bottle of wine during the December holiday season.These gifts are subject to the 50% limitation.

Accepted Answer

A) True 
 B)False

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

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

Correct Answer
verified

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

Correct Answer
verified

A taxpayer who uses the automatic mileage method for the business use of an automobile can change to the actual cost method in a later year.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Mallard Corporation pays for a trip to Aruba for its two top salespersons.This expense is subject to the overall limitation (50%).

Correct Answer
verified

The Federal per diem rates that can be used for "deemed substantiated" purposes are the same for all locations in the country.

Correct Answer
verified

Every year, Teal Corporation gives each employee a turkey and a bottle of wine during the December holiday season.These gifts are subject to the 50% limitation.

Correct Answer
verified

Which of the following expenses, if any, are deductible?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

For tax purposes, travel is a broader classification than transportation.

Correct Answer
verified

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A taxpayer who uses the automatic mileage method for the business use of an automobile can change to the actual cost method in a later year.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Mallard Corporation pays for a trip to Aruba for its two top salespersons.This expense is subject to the overall limitation (50%).

Correct AnswerverifiedShow Answer

The Federal per diem rates that can be used for "deemed substantiated" purposes are the same for all locations in the country.

Correct AnswerverifiedShow Answer

Every year, Teal Corporation gives each employee a turkey and a bottle of wine during the December holiday season.These gifts are subject to the 50% limitation.

Correct AnswerverifiedShow Answer

Which of the following expenses, if any, are deductible?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

For tax purposes, travel is a broader classification than transportation.

Correct AnswerverifiedShow Answer

Correct Answer
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