Question 1

The Federal per diem rates that can be used for "deemed substantiated" purposes are not the same for all locations in the country.

Accepted Answer

A) True 
 B)False

Question 2

In terms of IRS attitude, what do the following expenses have in common?

Accepted Answer

The answer of In terms of IRS attitude, what do...

Question 3

Marcie moved from Oregon to West Virginia to accept a better job.She incurred the following unreimbursed moving expenses:
   What is Nicole's moving expense deduction?

Accepted Answer

$11,500 ($4,000 + $500 + $7,00

Question 4

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

Accepted Answer

Although subject to Social Security tax,

Question 5

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 6

Kelly, an unemployed architect, moves from Boston to Phoenix to accept a job as a chef at a restaurant.Kelly's moving expenses are not deductible because her new job is in a different trade or business.

Accepted Answer

A) True 
 B)False

Question 7

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. 
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.

Question 8

There is no cutback adjustment for meals and entertainment as to employees who are subject to regulation by the U.S.Department of Transportation.

Accepted Answer

A) True 
 B)False

Question 9

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.

Accepted Answer

A) True 
 B)False

Question 10

Alexis (a CPA and JD) sold her public accounting practice in Des Moines and accepted a job with the Seattle office of a national accounting firm.Her moving expenses are not deductible because she has changed employment status (i.e., went from self-employed to employee).

Accepted Answer

A) True 
 B)False

Question 11

The § 222 deduction for tuition and related expenses is available:

Accepted Answer

A) Only if the taxpayer itemizes deductions from AGI. 
B) To deduct that portion of the tuition in excess of that allowed under the lifetime learning credit. 
C) To cover the tuition of a son who does not qualify as taxpayer's dependent. 
D) Even if not job related. 
E) None of the above. 
A) Only if the taxpayer itemizes deductions from AGI. 
B) To deduct that portion of the tuition in excess of that allowed under the lifetime learning credit. 
C) To cover the tuition of a son who does not qualify as taxpayer's dependent. 
D) Even if not job related. 
E) None of the above.

Question 12

Madison is an instructor of fine arts at a local community college.If she spends $600 (not reimbursed) on art supplies for her classes, $250 of this amount can be claimed as a deduction for AGI.

Accepted Answer

A) True 
 B)False

Question 13

If a taxpayer does not own a home but rents an apartment, the office in the home deduction is not available.

Accepted Answer

A) True 
 B)False

Question 14

A taxpayer who claims the standard deduction will not avoid the 2% floor on unreimbursed employee expenses.

Accepted Answer

A) True 
 B)False

Question 15

Due to a merger, Allison transfers from Miami to Chicago.Under a new job description, she is reclassified from employee to independent contractor status.Her moving expenses, which are not reimbursed, are as follows:   Allison's deductible moving expense is:

Accepted Answer

A) $0. 
B) $5,900. 
C) $6,100. 
D) $8,900. 
E) $9,300. 
A) $0. 
B) $5,900. 
C) $6,100. 
D) $8,900. 
E) $9,300.

Question 16

At age 65, Camilla retires from her job in Boston and moves to Florida.As a retiree, she is not subject to the time test in deducting her moving expenses.

Accepted Answer

A) True 
 B)False

Question 17

Samuel, age 53, has a traditional deductible IRA with an account balance of $112,000.Of this amount, $82,000 represents contributions and $30,000 represents earnings.In 2012, he converts his traditional IRA into a Roth IRA.What amount must Samuel include in his gross income, if any, in 2012?

Accepted Answer

$112,000.The entire amount of

Question 18

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 19

Ramon and Ingrid work in the field of public relations and incur sizable entertainment expenses.Ramon is employed by a consumer products company, while Ingrid is a self-employed consultant.Regarding the tax treatment of the entertainment expenses, when would:

Accepted Answer

The answer of Ramon and Ingrid work in the field...

Question 20

For the spousal IRA provision to apply, a joint return must be filed.

Accepted Answer

A) True 
 B)False

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

The Federal per diem rates that can be used for "deemed substantiated" purposes are not the same for all locations in the country.

In terms of IRS attitude, what do the following expenses have in common?

Marcie moved from Oregon to West Virginia to accept a better job.She incurred the following unreimbursed moving expenses: What is Nicole's moving expense deduction?

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

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.

Kelly, an unemployed architect, moves from Boston to Phoenix to accept a job as a chef at a restaurant.Kelly's moving expenses are not deductible because her new job is in a different trade or business.

A worker may prefer to be classified as an employee (rather than an independent contractor) for which of the following reasons:

There is no cutback adjustment for meals and entertainment as to employees who are subject to regulation by the U.S.Department of Transportation.

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.

Alexis (a CPA and JD) sold her public accounting practice in Des Moines and accepted a job with the Seattle office of a national accounting firm.Her moving expenses are not deductible because she has changed employment status (i.e., went from self-employed to employee).

The § 222 deduction for tuition and related expenses is available:

Madison is an instructor of fine arts at a local community college.If she spends $600 (not reimbursed) on art supplies for her classes, $250 of this amount can be claimed as a deduction for AGI.

If a taxpayer does not own a home but rents an apartment, the office in the home deduction is not available.

A taxpayer who claims the standard deduction will not avoid the 2% floor on unreimbursed employee expenses.

Due to a merger, Allison transfers from Miami to Chicago.Under a new job description, she is reclassified from employee to independent contractor status.Her moving expenses, which are not reimbursed, are as follows: Allison's deductible moving expense is:

At age 65, Camilla retires from her job in Boston and moves to Florida.As a retiree, she is not subject to the time test in deducting her moving expenses.

Samuel, age 53, has a traditional deductible IRA with an account balance of $112,000.Of this amount, $82,000 represents contributions and $30,000 represents earnings.In 2012, he converts his traditional IRA into a Roth IRA.What amount must Samuel include in his gross income, if any, in 2012?

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?

Ramon and Ingrid work in the field of public relations and incur sizable entertainment expenses.Ramon is employed by a consumer products company, while Ingrid is a self-employed consultant.Regarding the tax treatment of the entertainment expenses, when would:

For the spousal IRA provision to apply, a joint return must be filed.

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Computing the Tax

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges-Part 1

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges-Part 2

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

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S: Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

Income Taxation of Trusts and Estates

Filters