Question 1

Myra's classification of those who work for her as independent contractors is being questioned by the IRS. It is the position of the IRS that these workers are really employees. What type of factors can Myra utilize to justify her classification?

Accepted Answer

Myra needs to show that she has a reason...

Question 2

Tammy has $200,000 of QBI from her neighborhood clothing store a sole proprietorship) . Tammy's proprietorship paid $30,000 in W-2 wages and has $20,000 of qualified property. Tammy's spouse earned $50,000 of wages as an employee, they earned $20,000 of interest income during the year, and will be filing jointly. What is their QBI deduction for 2018?

Accepted Answer

A)   $-0-.
B)   $40,000.
C)   $50,000.
D)   $54,000.
E)   None of the above.F) A) and B)
G) A) and E)

Question 3

James has a job that compels him to go to many different states during the year. It is possible that James was never away from his tax home during the year.

Accepted Answer

A) True 
 B)False

Question 4

Isabella is a dental hygienist who works for five different dentists. She spends one day a week i.e., Monday through Friday) with each. All of the dentists except Dr. Stanki the Wednesday assignment) treat her as an employee. Dr. Stanki, however, classifies her as being self-employed. Comment on this discrepancy in treatment.

Accepted Answer

Unless Isabella's Wednesday duties are s...

Question 5

There are three limitations on the qualified business income deduction. An overall limitation based on modified taxable income), another that applies to high income taxpayers, and a third that applies to certain types of services businesses.

Accepted Answer

A) True 
 B)False

Question 6

Allowing for the overall limitation 50% reduction for meals) , which of the following trips, if any, will qualify for the travel expense deduction?

Accepted Answer

A)   Dr. Jones, a self-employed general dentist, attends a two-day seminar on developing a dental practice.
B)   Dr. Brown, a self-employed surgeon, attends a two-day seminar on financial planning.
C)   Paul, a romance language high school teacher, spends summer break in France, Portugal, and Spain improving his language skills.
D)   Myrna went on a two-week vacation in Boston. While there, she visited her employer's home office to have lunch with former co-workers.
E)   All of these.F) A) and E)
G) None of the above

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 E)
G) C) and D)

Question 9

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

Accepted Answer

A)   Contributions to a Coverdell Education Savings Account CES
A)  .
B)   Contributions to a qualified tuition program § 529 plan) .
C)   Job hunting expense of FBI agent who applies for the job of city manager of Beaumont TX) .
D)   Contribution to a traditional IRA.
E)   None of these.F) A) and B)
G) A) and E)

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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?

Accepted Answer

A)   The appropriate Federal per diem amount.
B)   $75 per day.
C)   All expenses up to $25 per day.
D)   The per diem rate established by the state in which they live.
E)   None of the above.F) A) and B)
G) D) and E)

Question 12

A "qualified trade or business" includes any trade or business including providing services as an employee.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)   Safety shoes purchased by an 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 non-employed retiree.
E)   None of these.F) A) and E)
G) A) and D)

Question 14

Which of the following miscellaneous expenses is deductible in 2018?

Accepted Answer

A)   Unreimbursed employee business expenses.
B)   Job hunting expenses.
C)   Union dues.
D)   Losses from Ponzi-type investment schemes.
E)   All of the above expenses are miscellaneous itemized deductions.F) D) and E)
G) B) and E)

Question 15

One indicator 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 16

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 17

A taxpayer who claims the standard deduction may be able to claim an office in the home deduction.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Beginning in 2018, the moving expense deduction has been eliminated for all taxpayers.

Accepted Answer

A) True 
 B)False

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

There are three limitations on the qualified business income deduction. An overall limitation based on modified taxable income), another that applies to high income taxpayers, and a third that applies to certain types of services businesses.

Correct Answer
verified

One indicator 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

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

Correct Answer
verified

Correct Answer
verified
Unless Isabella's Wednesday duties are s...
View Answer

Correct Answer
verified

Allowing for the overall limitation 50% reduction for meals) , which of the following trips, if any, will qualify for the travel expense deduction?

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

A taxpayer who claims the standard deduction may be able to claim an office in the home deduction.

Correct Answer
verified

Myra's classification of those who work for her as independent contractors is being questioned by the IRS. It is the position of the IRS that these workers are really employees. What type of factors can Myra utilize to justify her classification?

Correct Answer
verified
Myra needs to show that she has a reason...
View Answer

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

Correct Answer
verified

James has a job that compels him to go to many different states during the year. It is possible that James was never away from his tax home during the year.

Correct Answer
verified

Beginning in 2018, the moving expense deduction has been eliminated for all taxpayers.

Correct Answer
verified

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

Correct Answer
verified

Which of the following miscellaneous expenses is deductible in 2018?

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

A "qualified trade or business" includes any trade or business including providing services as an employee.

Correct Answer
verified

Which, if any, of the following expenses 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

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

There are three limitations on the qualified business income deduction. An overall limitation based on modified taxable income), another that applies to high income taxpayers, and a third that applies to certain types of services businesses.

Correct AnswerverifiedShow Answer

One indicator 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

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedUnless Isabella's Wednesday duties are s...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Allowing for the overall limitation 50% reduction for meals) , which of the following trips, if any, will qualify for the travel expense deduction?

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

A taxpayer who claims the standard deduction may be able to claim an office in the home deduction.

Correct AnswerverifiedShow Answer

Myra's classification of those who work for her as independent contractors is being questioned by the IRS. It is the position of the IRS that these workers are really employees. What type of factors can Myra utilize to justify her classification?

Correct AnswerverifiedMyra needs to show that she has a reason...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

James has a job that compels him to go to many different states during the year. It is possible that James was never away from his tax home during the year.

Correct AnswerverifiedShow Answer

Beginning in 2018, the moving expense deduction has been eliminated for all taxpayers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following miscellaneous expenses is deductible in 2018?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

A "qualified trade or business" includes any trade or business including providing services as an employee.

Correct AnswerverifiedShow Answer

Which, if any, of the following expenses 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

Correct Answer
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Correct Answer
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Correct Answer
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Unless Isabella's Wednesday duties are s...
View Answer

Correct Answer
verified

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Correct Answer
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Correct Answer
verified
Myra needs to show that she has a reason...
View Answer

Correct Answer
verified

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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Correct Answer
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Correct Answer
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