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 41

True/False

Review LaterAdd Note

Review Later

A taxpayer who uses the automatic mileage method to compute auto expenses can also deduct the business portion of tolls and parking.

A) True
B) False

Correct Answer

verified

Show Answer

Question 42

True/False

Review LaterAdd Note

Review Later

At age 65,Camilla retires from her job in Boston and moves to Florida.As a retiree,she is not subject to the time test in deducting her moving expenses.

A) True
B) False

Correct Answer

verified

Show Answer

Question 43

True/False

Review LaterAdd Note

Madison is an instructor of fine arts at a local community college.If she spends $600 (not reimbursed)on art supplies for her classes,some of this amount can be claimed as a deduction for AGI.

Tickets to a theater performance or sporting event can be treated as either business entertainment or a business gift if the taxpayer does not accompany the client to the event.

Which,if any,of the following expenses are not subject to the 2%-of-AGI floor?

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.

A taxpayer who always claims the standard deduction (i.e.,does not itemize his or her deductions from AGI)will not be able to receive a tax benefit from any education expenses incurred.

Tom owns and operates a lawn maintenance company.He does not concern himself with employment taxes because he considers all the persons who work for him to be independent contractors.He bases this assumption of the fact that several of his friends who operate similar businesses follow the same approach.Comment on Tom's situation.

Tired of renting,Dr.Smith buys the academic robes she will wear at her college's graduation procession.The cost of this attire qualifies as a uniform expense.

If a business retains someone to provide services,that person may either be an employee or be self-employed (i.e.,independent contractor).

A participant who is at least age 59 1/2 can make a tax-free qualified withdrawal from a Roth IRA after a five-year holding period.

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.

In contrasting the reporting procedures of employees and self-employed persons regarding job-related transactions,which of the following items involve self-employed?

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

Travel status requires that the taxpayer be away from home overnight.

Corey performs services for Sophie.Which,if any,of the following factors indicate that Corey is an independent contractor,rather than an employee?

Clint uses his automobile for both business and personal use and claims the automatic mileage rate for all purposes.During 2011,his mileage was as follows: How much can Clint claim for mileage?

Jana has $335,000 of earned income in 2011.Calculate the amount she can contribute to a SEP.

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