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 1

True/False

Review LaterAdd Note

Review Later

Dana contributes $2,000 too much to a § 401(k) plan which is not returned within 2 1/2 month after the close of the tax year. The employer will have to pay a tax of $200

A) True
B) False

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Which, if any, of the following factors is not a characteristic of independent contractor status?

A) Services are performed for more than one party.
B) Receipt of a Form 1099 reporting payments received.
C) Workplace fringe benefits are not available.
D) Work-related expenses are reported on Form 2106.
E) None of the above.

F) None of the above
G) A) and B)

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

As Christmas presents, Lily sends gift certificates (each valued at $25) to Caden (a key client) and to each of his two minor children.Lily can deduct $75 (3 ´ $25) as to these gifts.

The IRS will not issue advanced rulings as to whether a worker's status is that of an employee or an independent contractor.

Donna, age 27 and unmarried, is an active participant in a qualified retirement plan.Her AGI is $116,000.What amount, if any, may Donna contribute to a Roth IRA in 2012?

The tax law specifically provides that a taxpayer cannot be temporarily away from home for any period of employment that exceeds one year.

Allowing for the cutback adjustment (50% reduction for meals and entertainment) , which of the following trips, if any, will qualify for the travel expense deduction?

Qualified moving expenses include the cost of lodging but not meals during the move.

As to meeting the time test for purposes of deducting moving expenses, which of the following statements is correct?

Distributions from a Roth IRA that are subject to taxation are treated first as from earnings and last as from contributions.

Concerning the deduction for moving expenses, what circumstances, if any, will excuse a taxpayer from meeting the time test of 39 or 78 weeks?

Mallard Corporation furnishes meals at cost to its employees by means of a cafeteria it maintains.The cost of operating the cafeteria is subject to the cutback adjustment.

Frank, a recently retired FBI agent, pays job search expenses to obtain a position with a city police department.Frank's job search expenses do not qualify as deductions.

Under the automatic mileage method, one rate does not cover every type of expense.For 2012, what are the rates for business use, education, moving, charitable, and medical?

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.

In terms of income tax treatment, what is the difference between common law and statutory employees?

Dove Corporation pays for a trip to Jamaica for its two top salespersons.This expense is not subject to the cutback adjustment.

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

Regarding § 222 (qualified higher education deduction for tuition and related expenses), comment on the following:

Christopher just purchased an automobile for $40,000 which he plans to claim 100% as being for business use.In order to take advantage of MACRS and § 179, he plans to use the actual cost method for determining his deduction in the first year.In subsequent years, he will switch to the automatic mileage method.Comment on Christopher's proposed approach.