Question 1

Match the statements that relate to each other.(Note: Choice L may be used more than once. ) 
-Qualified tuition and related expenses (under § 222)

Accepted Answer

A)  Cover charge paid to entertain client at a night club.
B)  Deductible even if taxpayer does not take the new job
C)  Company picnic sponsored by employer
D)  Use of Federal per diem allowance to substantiate meals while in travel status
E)  Does not have to be job relatedF) Can include cost of car insurance and automobile club duesG) Distribution from plan is taxableH) Distribution from plan is not taxableI) Expatriate (U.S.person who is employed overseas) returns home to retireJ) Taxpayer moves to a new residence 55 miles closer to his present jobK) Country club membership feeL) Correct match not providedM) E) and I)
N) B) and G)

Question 2

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 3

Flamingo Corporation furnishes meals at cost to its employees by means of a cafeteria it maintains.The cost of operating the cafeteria is not subject to the cutback adjustment.

Accepted Answer

A) True 
 B)False

Question 4

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).

Accepted Answer

A) True 
 B)False

Question 5

Brian makes gifts as follows:
Recipient Cost of Gift
Mr.Brown (a client)$27*
Mrs.Brown (Mr.Brown's wife)  15
Ms.Smith (Brian's receptionist)  30
Mr.Jones (Brian's boss)  40
*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 6

In connection with the office in the home deduction,comment on the following:
a.Mixed use (i.e. ,business and personal)of the portion of the home allocated to business.
b.The difference between direct and indirect expenses for deduction purposes.
c.The classification of the expense (i.e. ,dfor or dfrom AGI).

Accepted Answer

l.In most cases,mixed use of the portion...

Question 7

During 2014,Eva used her car as follows: 12,000 miles (business),1,400 miles (commuting),and 4,000 miles (personal).In addition,she spent $440 for tolls (business)and $620 for parking (business).If Eva uses the automatic mileage method,what is the amount of her deduction?

Accepted Answer

$7.780.(12,000 miles...

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Sick of her 65 mile daily commute,Edna purchases a condo that is only four miles from her job.Edna's moving expenses to her new condo are not allowed and cannot be claimed by her as a deduction.

Accepted Answer

A) True 
 B)False

Question 10

Sue performs services for Lynn.Regarding this arrangement,use the legend provided to classify each statement.
-Sue charges by the hour for her work.

Accepted Answer

A)  Indicates employee status.
B)  Indicates independent contractor status.C) A) and B)
D) undefined

Question 11

Match the statements that relate to each other.(Note: Choice L may be used more than once. ) 
-Nondeductible moving expense

Accepted Answer

A)  Must involve the same trade or business
B)  Must be for the convenience of the employer
C)  Meals while in route
D)  Lodging while in route
E)  Out-of-town job assignment lasts for more than one yearF) Can include actual cost of parkingG) Payment for services rendered based on tasks performedH) Excludes use of MACRS depreciationI) Taxpayer has tools and helper provided for himJ) Transportation must be allocated if taxpayer spends two weeks on business and one week sightseeingK) Paralegal obtains a law degreeL) Correct match not providedM) F) and I)
N) H) and K)

Question 12

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.

Accepted Answer

Jacob has no commuting expense...

Question 13

The § 222 deduction for tuition and related expenses is available:

Accepted Answer

A)  Only if the taxpayer itemizes deductions from AGI.
B)  To deduct that portion of the tuition in excess of that allowed under the lifetime learning credit.
C)  To cover the tuition of a son who does not qualify as taxpayer's dependent.
D)  Only if job related.
E)  None of these.F) A) and D)
G) B) and C)

Question 14

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

Accepted Answer

A)  Avoids the cutback adjustment as to business meals.
B)  All of the self-employment tax is deductible for income tax purposes.
C)  Work-related expenses are not subject to the 2%-of-AGI floor.
D)  A Schedule C does not have to be filed.
E)  None of these.F) C) and D)
G) A) and C)

Question 15

If a taxpayer does not own a home but rents an apartment,the office in the home deduction is not available.

Accepted Answer

A) True 
 B)False

Question 16

Kelly,an unemployed architect,moves from Boston to Phoenix to accept a job as a chef at a restaurant.Kelly's moving expenses are not deductible because her new job is in a different trade or business.

Accepted Answer

A) True 
 B)False

Question 17

Match the statements that relate to each other.(Note: Choice L may be used more than once. ) 
-Deductible moving expense

Accepted Answer

A)  Must involve the same trade or business
B)  Must be for the convenience of the employer
C)  Meals while in route
D)  Lodging while in route
E)  Out-of-town job assignment lasts for more than one yearF) Can include actual cost of parkingG) Payment for services rendered based on tasks performedH) Excludes use of MACRS depreciationI) Taxpayer has tools and helper provided for himJ) Transportation must be allocated if taxpayer spends two weeks on business and one week sightseeingK) Paralegal obtains a law degreeL) Correct match not providedM) E) and F)
N) D) and L)

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

Sue performs services for Lynn.Regarding this arrangement,use the legend provided to classify each statement. -Sue charges by the hour for her work.

Correct Answer
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Correct Answer
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l.In most cases,mixed use of the portion...
View Answer

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

Correct Answer
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Flamingo Corporation furnishes meals at cost to its employees by means of a cafeteria it maintains.The cost of operating the cafeteria is not subject to the cutback adjustment.

Correct Answer
verified

Sick of her 65 mile daily commute,Edna purchases a condo that is only four miles from her job.Edna's moving expenses to her new condo are not allowed and cannot be claimed by her as a deduction.

Correct Answer
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Match the statements that relate to each other.(Note: Choice L may be used more than once. ) -Nondeductible moving expense

Correct Answer
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During 2014,Eva used her car as follows: 12,000 miles (business),1,400 miles (commuting),and 4,000 miles (personal).In addition,she spent $440 for tolls (business)and $620 for parking (business).If Eva uses the automatic mileage method,what is the amount of her deduction?

Correct Answer
verified
$7.780.(12,000 miles...
View Answer

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

Correct Answer
verified

If a taxpayer does not own a home but rents an apartment,the office in the home deduction is not available.

Correct Answer
verified

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.

Correct Answer
verified

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.

Correct Answer
verified
Jacob has no commuting expense...
View Answer

Match the statements that relate to each other.(Note: Choice L may be used more than once. ) -Deductible moving expense

Correct Answer
verified

Kelly,an unemployed architect,moves from Boston to Phoenix to accept a job as a chef at a restaurant.Kelly's moving expenses are not deductible because her new job is in a different trade or business.

Correct Answer
verified

Brian makes gifts as follows: Recipient ^Cost^of^Gift Mr.Brown (a client)^$27* Mrs.Brown (Mr.Brown's wife)¹⁵ Ms.Smith (Brian's receptionist)³⁰ Mr.Jones (Brian's boss)⁴⁰ *Includes $2 for engraving Presuming adequate substantiation and no reimbursement,how much may Brian deduct?

Correct Answer
verified
$52 ($27 + $25).The deduction for Mr.Bro...
View Answer

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).

Correct Answer
verified

The § 222 deduction for tuition and related expenses is available:

Correct Answer
verified

Match the statements that relate to each other.(Note: Choice L may be used more than once. ) -Qualified tuition and related expenses (under § 222)

Correct Answer
verified

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

Sue performs services for Lynn.Regarding this arrangement,use the legend provided to classify each statement. -Sue charges by the hour for her work.

Correct AnswerverifiedShow Answer

Correct Answerverifiedl.In most cases,mixed use of the portion...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Flamingo Corporation furnishes meals at cost to its employees by means of a cafeteria it maintains.The cost of operating the cafeteria is not subject to the cutback adjustment.

Correct AnswerverifiedShow Answer

Sick of her 65 mile daily commute,Edna purchases a condo that is only four miles from her job.Edna's moving expenses to her new condo are not allowed and cannot be claimed by her as a deduction.

Correct AnswerverifiedShow Answer

Match the statements that relate to each other.(Note: Choice L may be used more than once. ) -Nondeductible moving expense

Correct AnswerverifiedShow Answer

During 2014,Eva used her car as follows: 12,000 miles (business),1,400 miles (commuting),and 4,000 miles (personal).In addition,she spent $440 for tolls (business)and $620 for parking (business).If Eva uses the automatic mileage method,what is the amount of her deduction?

Correct Answerverified$7.780.(12,000 miles...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

If a taxpayer does not own a home but rents an apartment,the office in the home deduction is not available.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedJacob has no commuting expense...View AnswerShow Answer

Match the statements that relate to each other.(Note: Choice L may be used more than once. ) -Deductible moving expense

Correct AnswerverifiedShow Answer

Kelly,an unemployed architect,moves from Boston to Phoenix to accept a job as a chef at a restaurant.Kelly's moving expenses are not deductible because her new job is in a different trade or business.

Correct AnswerverifiedShow Answer

Brian makes gifts as follows: Recipient Cost of Gift Mr.Brown (a client)$27* Mrs.Brown (Mr.Brown's wife) 15 Ms.Smith (Brian's receptionist) 30 Mr.Jones (Brian's boss) 40 *Includes $2 for engraving Presuming adequate substantiation and no reimbursement,how much may Brian deduct?

Correct Answerverified$52 ($27 + $25).The deduction for Mr.Bro...View AnswerShow Answer

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).

Correct AnswerverifiedShow Answer

The § 222 deduction for tuition and related expenses is available:

Correct AnswerverifiedShow Answer

Match the statements that relate to each other.(Note: Choice L may be used more than once. ) -Qualified tuition and related expenses (under § 222)

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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l.In most cases,mixed use of the portion...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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$7.780.(12,000 miles...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Jacob has no commuting expense...
View Answer

Correct Answer
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Correct Answer
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Brian makes gifts as follows: Recipient ^Cost^of^Gift Mr.Brown (a client)^$27* Mrs.Brown (Mr.Brown's wife)¹⁵ Ms.Smith (Brian's receptionist)³⁰ Mr.Jones (Brian's boss)⁴⁰ *Includes $2 for engraving Presuming adequate substantiation and no reimbursement,how much may Brian deduct?

Correct Answer
verified
$52 ($27 + $25).The deduction for Mr.Bro...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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