Filters
Question type
Study Flashcards

When using the automatic mileage method, which, if any, of the following expenses also can be claimed?


A) Engine tune-up.
B) Parking.
C) Interest on automobile loan.
D) MACRS depreciation.
E) None of these.

F) None of the above
G) C) and E)

Correct Answer

verifed

verified

Match the statements that relate to each other. (Note: Choice L may be used more than once.) -Mixed use (both business and pleasure) foreign travel


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 year
F) Can include actual cost of parking
G) Payment for services rendered based on tasks performed
H) Excludes use of MACRS depreciation
I) Taxpayer has tools and helper provided for him
J) Transportation must be allocated if taxpayer spends two weeks on business and one week sightseeing
K) Paralegal obtains a law degree
L) Correct match not provided

M) D) and I)
N) A) and B)

Correct Answer

verifed

verified

Match the statements that relate to each other. (Note: Choice L may be used more than once.) -Characteristic of a taxpayer who is self-employed


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 year
F) Can include actual cost of parking
G) Payment for services rendered based on tasks performed
H) Excludes use of MACRS depreciation
I) Taxpayer has tools and helper provided for him
J) Transportation must be allocated if taxpayer spends two weeks on business and one week sightseeing
K) Paralegal obtains a law degree
L) Correct match not provided

M) C) and J)
N) D) and I)

Correct Answer

verifed

verified

How are combined business/pleasure trips treated for travel within the United States as opposed to foreign travel?

Correct Answer

verifed

verified

The major difference is that transportat...

View Answer

An employee can exclude from gross income the value of meals provided by his or her employer whenever:


A) The meal is not extravagant.
B) The meals are provided on the employer's premises for the employer's convenience.
C) There are no places to eat near the work location.
D) The meals are provided for the convenience of the employee.
E) None of these.

F) A) and B)
G) B) and D)

Correct Answer

verifed

verified

The CEO of Cirtronics Inc., discovered that the company's competitor had adopted a cafeteria plan for its employees. The CEO is concerned about retaining his talented employees and would like you to provide a brief explanation as to why a cafeteria plan may be attractive to the company's employees.

Correct Answer

verifed

verified

Cafeteria plans are beneficial where emp...

View Answer

Susan generated $55,000 of net earnings from the conduct of a tax preparation business that she operated during the tax-filing season. She also received wages of $68,300 from her full-time job. Compute the self-employment taxes due for 2016.

Correct Answer

verifed

verified

Self-employment earn...

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).

A) True
B) False

Correct Answer

verifed

verified

The ceiling amounts and percentages for 2016 for the two portions of the self-employment tax are: ā€‹ Social Security portion Medicare portion


A) $118,500; 12.4% Unlimited; 2.9%
B) $118,500; 15.3% Unlimited; 2.9%
C) $117,000; 12.4% Unlimited; 2.9%
D) $117,000; 2.9% Unlimited; 13.3%

E) A) and C)
F) All of the above

Correct Answer

verifed

verified

In which, if any, of the following situations is the automatic mileage available?


A) A limousine to be rented by the owner for special occasions (e.g., weddings, high school proms) .
B) The auto belongs to taxpayer's mother.
C) One of seven cars used to deliver pizzas.
D) MACRS statutory percentage method has been claimed on the automobile.
E) None of these.

F) B) and D)
G) A) and B)

Correct Answer

verifed

verified

In May 2016, after 11 months on a new job, Ken is fired after he assaults a customer. Ken must include in his gross income for 2016 any deduction for moving expenses he may have claimed on his 2015 tax return.

A) True
B) False

Correct Answer

verifed

verified

Julie was suffering from a viral infection that caused her to miss work for 90 days. During the first 30 days of her absence, she received her regular salary of $8,000 from her employer. For the next 60 days, she received $12,000 under an accident and health insurance policy purchased by her employer. The premiums on the health insurance policy were excluded from her gross income. During the last 30 days, Julie received $6,000 on an income replacement policy she had purchased. Of the $26,000 she received, Julie must include in gross income:


A) $0.
B) $6,000.
C) $8,000.
D) $14,000.
E) $20,000.

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

Correct Answer

verifed

verified

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

A) True
B) False

Correct Answer

verifed

verified

In some cases it may be appropriate for a taxpayer to report work-related expenses by using both Form 2106 and Schedule C.

A) True
B) False

Correct Answer

verifed

verified

Dana, age 31 and unmarried, is an active participant in a qualified retirement plan. Her AGI is $120,000. What amount, if any, may Dana contribute to a Roth IRA in 2016?


A) $0
B) $3,225
C) $4,400
D) $5,500
E) None of the above

F) A) and C)
G) B) and D)

Correct Answer

verifed

verified

The employees of Mauve Accounting Services are permitted to use the copy machine for personal purposes, provided the privilege is not abused. Ed is the president of a civic organization and uses the copier to make several copies of the organization's agenda for its meetings. The copies made during the year would have cost $150 at a local office supply.


A) Ed must include $150 in his gross income.
B) Ed may exclude the cost of the copies as a no-additional cost fringe benefit.
C) Ed may exclude the cost of the copies only if the organization is a client of Mauve.
D) Ed may exclude the cost of the copies as a de minimis fringe benefit.
E) None of these.

F) A) and D)
G) B) and D)

Correct Answer

verifed

verified

Brian makes gifts as follows: ā€‹ Brian makes gifts as follows: ā€‹ * Includes $2 for gift wrapping ā€‹ Presuming adequate substantiation and no reimbursement, how much may Brian deduct? * Includes $2 for gift wrapping ā€‹ Presuming adequate substantiation and no reimbursement, how much may Brian deduct?

Correct Answer

verifed

verified

$52 ($27 + $25). The deduction for Mr. B...

View Answer

Match the statements that relate to each other. (Note: Choice L may be used more than once.) -Automatic mileage method


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 year
F) Can include actual cost of parking
G) Payment for services rendered based on tasks performed
H) Excludes use of MACRS depreciation
I) Taxpayer has tools and helper provided for him
J) Transportation must be allocated if taxpayer spends two weeks on business and one week sightseeing
K) Paralegal obtains a law degree
L) Correct match not provided

M) D) and K)
N) D) and J)

Correct Answer

verifed

verified

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


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

F) A) and D)
G) B) and E)

Correct Answer

verifed

verified

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


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 related
F) Can include cost of car insurance and automobile club dues
G) Distribution from plan is taxable
H) Distribution from plan is not taxable
I) Expatriate (U.S. person who is employed overseas) returns home to retire
J) Taxpayer moves to a new residence 55 miles closer to his present job
K) Country club membership fee
L) Correct match not provided

M) A) and E)
N) D) and J)

Correct Answer

verifed

verified

Showing 21 - 40 of 197

Related Exams

Exam 1

Introduction to Taxation

109 Questions

Exam 2

Working With the Tax Law

86 Questions

Exam 3

Tax Determination; Personal and Dependency Exemptions; an Overview of Property Transactions

87 Questions

Exam 4

Gross Income

110 Questions

Exam 5

Business Deductions

208 Questions

Exam 6

Losses and Loss Limitations

143 Questions

Exam 7

Property Transactions: Basis, Gain and Loss, and Nontaxable Exchanges

220 Questions

Exam 8

Property Transactions: Capital Gains and Losses, Section 1231, and Recapture Provisions

140 Questions

Exam 9

Individuals As the Taxpayer

175 Questions

Exam 10

Income, Deductions, and Credits

136 Questions

Exam 12

Corporations: Organization, Capital Structure, and Operating Rules

141 Questions

Exam 13

Corporations: Earnings Profits and Distributions

125 Questions

Exam 14

Partnerships and Limited Liability Entities

120 Questions

Exam 15

S Corporations

145 Questions

Exam 16

Multijurisdictional Taxation

129 Questions

Exam 17

Business Tax Credits and Corporate Alternative Minimum Tax

101 Questions

Exam 18

Comparative Forms of Doing Business

166 Questions

Show Answer