Question 1

Taylor performs services for Jonathan on a regular basis.There exists considerable doubt as to whether Taylor is an employee or an independent contractor.

Accepted Answer

The answer of Taylor performs services for Jonathan on a...

Question 2

Every year,Penguin Corporation gives each employee a fruit basket and a bottle of wine at Christmas.These gifts are not subject to the cutback adjustment.

Accepted Answer

A) True 
 B)False

Question 3

Jacob is a landscape architect who works out of his home.He wonders whether or not he will have nondeductible commuting expenses when he drives to the locations of his clients.Please comment.

Accepted Answer

Jacob has no commuting expense...

Question 4

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

Accepted Answer

The answer of Match the statements that relate to each...

Question 5

Rod uses his automobile for both business and personal use and claims the automatic mileage rate for all purposes.During 2012,his mileage was as follows:
  How much can Rod claim for mileage?

Accepted Answer

$6,313 [(8,800 miles ´ $0.555,...

Question 6

The work-related expenses of an independent contractor will not be subject to the 2%-of-AGI floor.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)   Car registration fees.
B)   Auto insurance.
C)   Interest expense on a car loan (taxpayer is an employee) .
D)   Dues to auto clubs.
E)   None of the above.F) A) and B)
G) A) and C)

Question 8

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

Accepted Answer

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) All of the above
G) None of the above

Question 9

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

Accepted Answer

A)   Engine tune-up.
B)   Parking.
C)   Interest on automobile loan.
D)   MACRS depreciation.
E)   None of the above.F) A) and D)
G) A) and C)

Question 10

Henry entertains several of his key clients on January 1 of the current year.Expenses paid by Henry are as follows:  Presuming proper substantiation,Henry's deduction is:

Accepted Answer

A)   $1,220.
B)   $740.
C)   $640.
D)   $610.
E)   None of the above.F) D) and E)
G) B) and E)

Question 11

For the current year,Horton was employed as a deputy sheriff of a county.He had AGI of $50,000 and the following unreimbursed employee expenses:
  How much of these expenses are allowed as deductions from AGI?

Accepted Answer

$1,400.$1,000 + $1,000 + $400 = $2,400 -...

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)   Work at the new location must involve a full-time job-part-time job will not suffice.
B)   The taxpayer has two years in which to satisfy the 39-weeks or 78-weeks requirement.
C)   The time test is waived for persons whose move follows retirement.
D)   The moving expense deduction cannot be claimed if the taxpayer has not yet met the time test.
E)   None of the above.F) A) and B)
G) A) and C)

Question 15

Qualifying job search expenses are deductible even if the taxpayer does not change jobs.

Accepted Answer

A) True 
 B)False

Question 16

Ralph made the following business gifts during the year.  Presuming proper substantiation,Ralph's deduction is:

Accepted Answer

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

Question 17

In choosing between the actual expense method and the automatic mileage method, a taxpayer should consider the cost of insurance on the automobile.

Accepted Answer

A) True 
 B)False

Question 18

Tired of her 60 mile daily commute,Margaret purchases a condo that is only five miles from her job.Margaret's moving expenses to her new condo are allowed and can be claimed by her as a deduction.

Accepted Answer

A) True 
 B)False

Question 19

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 cutback adjustment on unreimbursed business entertainment expenses.
D)   To avoid the 2%-of-AGI floor on unreimbursed work-related expenses.
E)   None of the above.F) None of the above
G) A) and B)

Question 20

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...

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

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

Correct AnswerverifiedShow Answer

For the current year,Horton was employed as a deputy sheriff of a county.He had AGI of $50,000 and the following unreimbursed employee expenses: How much of these expenses are allowed as deductions from AGI?

Correct Answerverified$1,400.$1,000 + $1,000 + $400 = $2,400 -...View AnswerShow Answer

Taylor performs services for Jonathan on a regular basis.There exists considerable doubt as to whether Taylor is an employee or an independent contractor.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Jacob is a landscape architect who works out of his home.He wonders whether or not he will have nondeductible commuting expenses when he drives to the locations of his clients.Please comment.

Correct AnswerverifiedJacob has no commuting expense...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Ralph made the following business gifts during the year. Presuming proper substantiation,Ralph's deduction is:

Correct AnswerverifiedShow Answer

Qualifying job search expenses are deductible even if the taxpayer does not change jobs.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Rod uses his automobile for both business and personal use and claims the automatic mileage rate for all purposes.During 2012,his mileage was as follows: How much can Rod claim for mileage?

Correct Answerverified$6,313 [(8,800 miles ´ $0.555,...View AnswerShow Answer

Henry entertains several of his key clients on January 1 of the current year.Expenses paid by Henry are as follows: Presuming proper substantiation,Henry's deduction is:

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

In choosing between the actual expense method and the automatic mileage method, a taxpayer should consider the cost of insurance on the automobile.

Correct AnswerverifiedShow Answer

Every year,Penguin Corporation gives each employee a fruit basket and a bottle of wine at Christmas.These gifts are not subject to the cutback adjustment.

Correct AnswerverifiedShow Answer

The work-related expenses of an independent contractor will not be subject to the 2%-of-AGI floor.

Correct AnswerverifiedShow Answer

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

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

Tired of her 60 mile daily commute,Margaret purchases a condo that is only five miles from her job.Margaret's moving expenses to her new condo are allowed and can be claimed by her as a deduction.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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$1,400.$1,000 + $1,000 + $400 = $2,400 -...
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Jacob has no commuting expense...
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$6,313 [(8,800 miles ´ $0.555,...
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Correct Answer
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Myra needs to show that she has a reason...
View Answer

Correct Answer
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Correct Answer
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