FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Individuals As Employees and Proprietors

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

During the year, John a self-employed management consultant) went from Milwaukee to Alaska on business.Preceding a five-day business meeting, he spent four days vacationing at the beach.Excluding the vacation costs, his expenses for the trip are: Presuming no reimbursement, deductible expenses are:

A) $3,200.
B) $3,900.
C) $4,500.
D) $5,500.
E) None of these.

F) None of the above
G) B) and C)

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

When contributions are made to a traditional IRA, they are deductible by the participant.Later distributions from the IRA upon retirement are fully taxed.

A) True
B) False

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

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.

Eileen lives and works in Mobile.She travels to Rome for an eight-day business meeting, after which she spends two days touring Italy.All of Eileen's airfare is deductible.

After the automatic mileage rate has been set by the IRS for a year, it cannot later be changed by the IRS.

The Royal Motor Company manufactures automobiles.Non-management employees of the company can buy a new automobile for Royal's cost plus 2%.The automobiles are sold to dealers at cost plus 20%.Generally, management employees of Local Dealer, Inc., are allowed to buy a new automobile from the company at the dealer's cost.Which of the following statements is correct?

Which, if any, of the following factors is a characteristic of independent contractor status?

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

Sue files a Schedule SE with her Form 1040.

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

An employee can exclude from gross income the value of meals provided by his or her employer whenever:

A U.S.citizen who works in France from February 1, 2018 until January 31, 2019 is eligible for the foreign earned income exclusion in 2018 and 2019.

One of the purposes of the qualified business income deduction was to reduce the taxes on businesses who are operating in non-corporate business forms e.g., sole proprietors, partnerships, and S corporations).

Every year, Teal Corporation gives each employee a turkey and a bottle of wine at the December holiday season.These gifts are subject to the 50% limitation.

Matilda works for a company with 1,000 employees.The company has a hospitalization insurance plan that covers all employees.However, the employee must pay the first $3,000 of his or her medical expenses each year.Each year, the employer contributes $1,500 to each employee's health savings account HSA) .Matilda's employer made the contributions in 2017 and 2018, and the account earned $100 interest in 2018.At the end of 2018, Matilda withdrew $3,100 from the account to pay the deductible portion of her medical expenses for the year and other medical expenses not covered by the hospitalization insurance policy.As a result, Matilda must include in her 2018 gross income:

Amy lives and works in St.Louis.In the morning she flies to Boston, has a three-hour business meeting, and returns to St.Louis that evening.For tax purposes, Amy was away from home.

Qualified moving expenses of an employee that are not reimbursed are a deduction for AGI.

Beginning in 2018, the moving expense deduction has been eliminated for all taxpayers.

In contrasting the reporting procedures of employees and self-employed persons regarding job-related transactions, which of the following items involve self-employed?

The tax law specifically provides that a taxpayer cannot be temporarily away from home for any period of employment that exceeds one year.