Question 1

Felicia, a recent college graduate, is employed as an accountant by an oil company. She would like to continue her education and obtain a law degree. Discuss Felicia's tax status if she attends a local law school on a:
a. Part-time basis.
b. Full-time basis.

Accepted Answer

a. Regarding the usual education expense...

Question 2

On their birthdays, Lily sends gift certificates (each valued at $25) to Caden (a key client) and to each of Caden's two minor children. Lily can deduct only $25 for these gifts.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

If an individual is subject to the direction or control of another only to the extent of the end result but not as to the means of accomplishment, an employer-employee relationship does not exist.

Accepted Answer

A) True 
 B)False

Question 5

Ralph made the following business gifts during the year.   To Robert (a key client)  at Christmas$50To Angel (Robert’s 8-year old daughter)  on her birthday 20To Ast (Ralph’s secretary)  on his birthday ( $ 3 was for gift wrapping)  30To Paige (Ralph’s boss)  at Christmas 40\begin{array} { l  } 	ext { To Robert (a key client)  at Christmas} &\$50\ 	ext {To Angel (Robert&#x27;s 8-year old daughter)  on her birthday } &20\ 	ext {To Ast (Ralph&#x27;s secretary)  on his birthday (  \$ 3  was for gift wrapping)  } &30\ 	ext {To Paige (Ralph&#x27;s boss)  at Christmas } &40\\end{array} To Robert (a key client)  at ChristmasTo Angel (Robert’s 8-year old daughter)  on her birthday To Ast (Ralph’s secretary)  on his birthday ( $ 3 was for gift wrapping)  To Paige (Ralph’s boss)  at Christmas ​$50203040​ 
 Presuming proper substantiation, Ralph's deduction is:

Accepted Answer

A)   $0.
B)   $53.
C)   $73.
D)   $78.
E)   $98. F) A) and B)
G) C) and E)

Question 6

Under the actual expense method, which of the following expenses, if any, will not be allowed?

Accepted Answer

A)   Parking fines incurred during business use of a car.
B)   Interest expense on a car loan (taxpayer is self-employed) .
C)   Auto insurance.
D)   Auto club dues.
E)   None of the above.F) D) and E)
G) B) and E)

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

Under the actual expense method, which of the following expenses, if any, will not be allowed?

Correct Answer
verified

If an individual is subject to the direction or control of another only to the extent of the end result but not as to the means of accomplishment, an employer-employee relationship does not exist.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

On their birthdays, Lily sends gift certificates (each valued at $25) to Caden (a key client) and to each of Caden's two minor children. Lily can deduct only $25 for these gifts.

Correct Answer
verified

Felicia, a recent college graduate, is employed as an accountant by an oil company. She would like to continue her education and obtain a law degree. Discuss Felicia's tax status if she attends a local law school on a: a. Part-time basis. b. Full-time basis.

Correct Answer
verified
a. Regarding the usual education expense...
View Answer

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

Under the actual expense method, which of the following expenses, if any, will not be allowed?

Correct AnswerverifiedShow Answer

If an individual is subject to the direction or control of another only to the extent of the end result but not as to the means of accomplishment, an employer-employee relationship does not exist.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

On their birthdays, Lily sends gift certificates (each valued at $25) to Caden (a key client) and to each of Caden's two minor children. Lily can deduct only $25 for these gifts.

Correct AnswerverifiedShow Answer

Felicia, a recent college graduate, is employed as an accountant by an oil company. She would like to continue her education and obtain a law degree. Discuss Felicia's tax status if she attends a local law school on a: a. Part-time basis. b. Full-time basis.

Correct Answerverifieda. Regarding the usual education expense...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. Regarding the usual education expense...
View Answer