Rajiv,a self-employed consultant,drove his auto 20,000 miles this year,15,000 to meetings with clients and 5,000 for commuting and personal use.The cost of operating the auto for the year was as follows: \[\begin{array} { | l | r | } \hline \text { Gasoline and repairs } & \$ 7,000 \\ \hline \text { Insurance } & 1,000 \\ \hline \text { Depreciation } & 4,000 \\ \hline \end{array}\] Rajiv's AGI is $100,000 before considering the auto costs.Rajiv has used the actual cost method in the past.What is Rajiv's deduction for the use of the auto?

A) $0 B) $9,000 C) $12,000 D) $7,000 A) $0 B) $9,000 C) $12,000 D) $7,000

Exam 23: Business Expenses and Deferred Compensation

Rajiv,a self-employed consultant,drove his auto 20,000 miles this year,15,000 to meetings with clients and 5,000 for commuting and personal use.The cost of operating the auto for the year was as follows: Gasoline and repairs \ 7,000 Insurance 1,000 Depreciation 4,000 Rajiv's AGI is $100,000 before considering the auto costs.Rajiv has used the actual cost method in the past.What is Rajiv's deduction for the use of the auto?

(Multiple Choice)

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Question 101

Characteristics of profit-sharing plans include all of the following with the exception of

(Multiple Choice)

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Question 102

In which of the following situations is the individual more likely to be classified as an independent contractor rather than an employee?

(Multiple Choice)

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Question 103

Travel expenses related to foreign conventions are disallowed unless the meeting is directly related to the taxpayer's business,and it is reasonable for the meeting to be held outside of North America.

(True/False)

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Question 104

Assuming AGI below the threshold,a contributor may make a deductible contribution to a Coverdell Education Savings Account for a qualified designated beneficiary of up to $2,000.

(True/False)

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Question 105

Self-employed individuals are allowed to deduct ordinary,necessary and reasonable expenses incurred in operating the trade or business.These allowable deductions are included in itemized deductions.

(True/False)

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Question 106

Showing 101 - 106 of 106

Characteristics of profit-sharing plans include all of the following with the exception of

In which of the following situations is the individual more likely to be classified as an independent contractor rather than an employee?

Travel expenses related to foreign conventions are disallowed unless the meeting is directly related to the taxpayer's business,and it is reasonable for the meeting to be held outside of North America.

Assuming AGI below the threshold,a contributor may make a deductible contribution to a Coverdell Education Savings Account for a qualified designated beneficiary of up to $2,000.

Self-employed individuals are allowed to deduct ordinary,necessary and reasonable expenses incurred in operating the trade or business.These allowable deductions are included in itemized deductions.

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