Multiple Choice
Bruce is employed as an executive and his wife, Marie, is a self-employed realtor. Besides Bruce's salary, Bruce and Marie own a warehouse that they rent to a local business for storage. This year they paid $1,250 for electric service in the warehouse. Marie also paid self-employment tax of $6,200 and Bruce had $7,000 of Social Security taxes withheld from his pay. Marie paid $45 fee to rent a safe deposit box to store records associated with her realty operation. Which of the following is a true statement?
A) One-half of the social security tax is deductible for AGI.
B) Only the electric bill is deductible for AGI.
C) The self-employment tax is not deductible.
D) The safe deposit fee and the electric bill are deductible for AGI.
E) None of these is true.
Correct Answer:
Verified
Correct Answer:
Verified
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