Exam 16: Tax Deductions and Travel Expenses for Employees and Self-Employed Individuals

Juanita knits blankets as a hobby and sells them. In the current year, she earns $5,000 from her blanket sales and incurs expenses of $600. On her tax return, she should

A couple will be getting divorced in 2019, resulting in the payment of alimony. Alimony paid in 2019 will be

The following individuals maintained offices in their home: (1) Dr. Austin is a self- employed surgeon who performs surgery at four hospitals. He uses his home for administrative duties as he does not have an office in any of the hospitals. (2) June, who is a self- employed plumber, earns her living in her customer's homes. She maintains an office at where she bills clients and does other paperwork related to her plumbing business. (3) Cassie is an employed as a sales representative of Montgomery Products, an out- of- town company which not have a local office. She uses an extra room in her home to plan her sales calls, write up orders and store inven The use of this room in her home is a required part of the job., and this work is the only use of this room. Who is entitled to a home office deduction?

Examples of the Exempt Model include deductible IRAs, H.R. 10 (Keogh) plans, Sec. 401(k) plans, and tax deferred annuities.

A partnership is generally required to use the tax year of one or more partners who own more than a 50% interest in partnership profits and capital.

Which of the following expenditures will qualify as a research expenditure for purposes of the research credit?

A sole proprietor will not be allowed to deduct current home office expenses to the extent that they create or increase a loss from her business.

Interest on Series E and Series EE U.S. savings bonds need not be reported until the bonds mature.

A tax case cannot be appealed when initiated in the

A taxpayer has a gain on Sec. 1245 property. None of the gain will be treated as Sec. 1231 gain unless the sale price exceeds the original cost.

Internal Revenue Code Section 61 provides an inclusive list of all possible items taxed under the Code.

When property is contributed to a partnership, the partnership's basis in the property is the same as that of the transferor partner even if gain is recognized on the transfer.

The requirements for a payment to be considered as alimony include all of the following except

Charlie is claimed as a dependent by his parents in 2018. He received $8,000 during the year from a part- time acting job, which was his only income. What is his standard deduction?

If a loss is disallowed under Section 267, a gain on a subsequent sale of the property by the related purchaser may be offset by the previously unrecognized loss.

Jesse installed solar panels in front of his office building in 2017. The panels are not attached to the building. After using the solar panels for 13 months, Jesse decided to replace them with a newer model to obtain a greater savings on electricity costs. Jesse sold the old solar panels for an amount greater than his original purchase price. What tax issues should be considered with purchase, use and sale of the original solar panels?

At her employer's request, Kim moves from Albany to Chicago. She incurs $20,000 of costs to move her household goods and to travel to the new location, plus $8,000 of temporary living expenses because the new home was not ready when she needed to start work. Her employer reimburses her the full $28,000 cost associated with the move. She cannot deduct the moving costs, but she is not economically impacted because she is fully reimbursed.

A married couple need not live together to file a joint return.

Identify which of the following statements is true.

Coretta sold the following securities during 2018: What is Coretta's net capital gain or loss result for the year?