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

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Question 51

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Match the statements that relate to each other.(Note: Choice L may be used more than once. ) -Cutback adjustment does not apply

A) Cover charge paid to entertain client at a night club.
B) Deductible even if taxpayer does not take the new job
C) Company picnic sponsored by employer
D) Use of Federal per diem allowance to substantiate meals while in travel status
E) Does not have to be job related
F) Can include cost of car insurance and automobile club dues
G) Distribution from plan is taxable
H) Distribution from plan is not taxable
I) Expatriate (U.S.person who is employed overseas) returns home to retire
J) Taxpayer moves to a new residence 55 miles closer to his present job
K) Country club membership fee
L) Correct match not provided

M) B) and K)
N) C) and D)

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Question 52

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Nicole just retired as a partner in a Philadelphia law firm.She moved to San Francisco where she took a job as an adjunct professor at a local law school.Can Nicole deduct her moving expenses? Explain

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She can deduct her moving expe...

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Question 53

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Bob lives and works in Newark,NJ.He travels to London for a three-day business meeting,after which he spends three days touring Scotland.All of his air fare is deductible.

Lily went from her office in Portland to Lisbon on business.While there,she spent part of the time on vacation.How much of the air fare of $5,000 can she deduct based on the following assumptions: a.Lily was gone five days (i.e. ,three business and two personal). b.Lily was gone five weeks (i.e. ,four business and one personal). c.Lily was gone five weeks (i.e. ,three business and two personal).

Match the statements that relate to each other.(Note: Choice L may be used more than once. ) -Education expense that is not deductible to maintain or improve existing skills

Sue performs services for Lynn.Regarding this arrangement,use the legend provided to classify each statement. -Sue has unreimbursed expenses.

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.

Meg teaches the fifth grade at a local school.During the year,she spends $1,200 for school supplies for use in her classroom.On her income tax return,some of this expense is not reported and the balance is deducted in two different places.Explain what has probably happened.

A taxpayer who maintains an office in the home to conduct his only business will not have nondeductible commuting expense.

Under the regular (actual expense)method,the portion of the office in the home deduction that exceeds the income from the business can be carried over to future years.

Jake performs services for Maude.If Maude provides the helper and tools,this is indicative of independent contractor (rather than employee)status.

If an individual is subject to the direction or control of another only to the extent of the end result but not as to the means of accomplishment,an employer-employee relationship does not exist.

Janet,who lives and works in Newark,travels to Atlanta for a Thursday-Friday business conference.She stays over after the conference and visits relatives and friends on Saturday.Under certain circumstances,the meals and lodging expenses for Saturday can be considered as business related.

Tired of renting,Dr.Smith buys the academic robes she will wear at her college's graduation procession.The cost of this attire does not qualify as a uniform expense.

Match the statements that relate to each other.(Note: Choice L may be used more than once. ) -Mixed use (both business and pleasure) domestic travel.

Isabella is a dental hygienist who works for five different dentists.She spends one day a week (i.e. ,Monday through Friday)with each.All of the dentists except Dr.Stanki (the Wednesday assignment)treat her as an employee.Dr.Stanki,however,classifies her as being self-employed.Comment on this discrepancy in treatment.

Noah moved from Delaware to Arizona to accept a better job.He incurred the following unreimbursed moving expenses: What is Noah's moving expense deduction?

A taxpayer who lives and works in Kansas City is sent to Chicago on an eight-day business trip.While in Chicago,taxpayer uses the hotel valet service to have some laundry done.The valet charge is a nondeductible personal travel expense.

Match the statements that relate to each other.(Note: Choice L may be used more than once. ) -Club dues not deductible

Under the automatic mileage method,one rate does not cover every type of expense.For 2014,what are the rates for business use,education,moving,charitable,and medical?