Question 1

In connection with the office in the home deduction, comment on the following:

Accepted Answer

The answer of In connection with the office in the...

Question 2

Beth, age 51, has a traditional deductible IRA with an account balance of $221,419 of which $160,400 represents contributions and $61,019 represents earnings.In 2012, she converts her traditional IRA into a Roth IRA.What amount, if any, must Beth include in her gross income in 2012?

Accepted Answer

A)  $0.
B)  $61,019.
C)  $160,400.
D)  $221,419.
E)  None of the above.F) None of the above
G) A) and B)

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

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 5

A participant, who is age 38, in a cash or deferred arrangement plan [§ 401(k) ] may contribute up to what amount in 2012?

Accepted Answer

A)  $12,000.
B)  $16,500.
C)  $17,000.
D)  $17,500.
E)  None of the above.F) C) and D)
G) A) and E)

Question 6

Once the actual cost method is used, a taxpayer cannot change to the automatic mileage method in a later year.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  Avoids the cutback adjustment as to business meals.
B)  All of the self-employment tax is deductible for income tax purposes.
C)  Work-related expenses are not subject to the 2%-of-AGI floor.
D)  A Schedule C does not have to be filed.
E)  None of the above.F) A) and C)
G) A) and B)

Question 8

Kay, a single individual, participates in her employer's SIMPLE § 401(k)  plan.The plan permits participants to contribute a percentage of their salary.Kay elects to contribute 5% of her annual salary of $111,000 to the plan.On what amount of her salary does Kay pay income taxes in 2012?

Accepted Answer

A)  $5,550.
B)  $11,500.
C)  $105,450.
D)  $111,000.
E)  None of above.F) None of the above
G) C) and E)

Question 9

One indicia of independent contractor (rather than employee) status is when the individual performing the services is paid based on time spent (rather than on tasks performed).

Accepted Answer

A) True 
 B)False

Question 10

In choosing between the actual expense method and the automatic mileage method, a taxpayer should consider the cost of insurance on the automobile.

Accepted Answer

A) True 
 B)False

Question 11

An individual, age 40, who is not subject to the phase-out provision may contribute a deductible amount to a Roth IRA up to $5,000 per year in 2012.

Accepted Answer

A) True 
 B)False

Question 12

During the year, Walt went from Louisville to Hawaii 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:

Accepted Answer

A)  $5,500.
B)  $4,800.
C)  $3,900.
D)  $3,200.
E)  None of the above.F) B) and E)
G) None of the above

Question 13

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.F) None of the above
G) A) and D)

Question 14

In some cases it may be appropriate for a taxpayer to report work-related expenses by using both Form 2106 and Schedule
C.

Accepted Answer

A) True 
 B)False

Question 15

Qualifying job search expenses are deductible even if the taxpayer does not change jobs.

Accepted Answer

A) True 
 B)False

Question 16

How are combined business/pleasure trips treated for travel within the United States as opposed to foreign travel?

Accepted Answer

The major difference is that transportat...

Question 17

If an individual is ineligible to make a deductible contribution to a traditional IRA, nondeductible contributions of any amount can be made to a traditional IRA.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

She can deduct her moving expe...

Question 20

Brian makes gifts as follows:
  * Includes $2 for engraving
Presuming adequate substantiation and no reimbursement, how much may Brian deduct?

Accepted Answer

$52 ($27 + $25).The deduction for Mr.Bro...

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

In connection with the office in the home deduction, comment on the following:

Correct AnswerverifiedShow Answer

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?

Correct Answerverified$11,500 ($4,000 + $500 + $7,00...View AnswerShow Answer

Qualifying job search expenses are deductible even if the taxpayer does not change jobs.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In some cases it may be appropriate for a taxpayer to report work-related expenses by using both Form 2106 and Schedule C.

Correct AnswerverifiedShow Answer

One indicia of independent contractor (rather than employee) status is when the individual performing the services is paid based on time spent (rather than on tasks performed).

Correct AnswerverifiedShow Answer

A participant, who is age 38, in a cash or deferred arrangement plan [§ 401(k) ] may contribute up to what amount in 2012?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Kay, a single individual, participates in her employer's SIMPLE § 401(k) plan.The plan permits participants to contribute a percentage of their salary.Kay elects to contribute 5% of her annual salary of $111,000 to the plan.On what amount of her salary does Kay pay income taxes in 2012?

Correct AnswerverifiedShow Answer

In choosing between the actual expense method and the automatic mileage method, a taxpayer should consider the cost of insurance on the automobile.

Correct AnswerverifiedShow Answer

Once the actual cost method is used, a taxpayer cannot change to the automatic mileage method in a later year.

Correct AnswerverifiedShow Answer

If an individual is ineligible to make a deductible contribution to a traditional IRA, nondeductible contributions of any amount can be made to a traditional IRA.

Correct AnswerverifiedShow Answer

Brian makes gifts as follows: * Includes $2 for engraving Presuming adequate substantiation and no reimbursement, how much may Brian deduct?

Correct Answerverified$52 ($27 + $25).The deduction for Mr.Bro...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

During the year, Walt went from Louisville to Hawaii 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:

Correct AnswerverifiedShow Answer

An individual, age 40, who is not subject to the phase-out provision may contribute a deductible amount to a Roth IRA up to $5,000 per year in 2012.

Correct AnswerverifiedShow Answer

Beth, age 51, has a traditional deductible IRA with an account balance of $221,419 of which $160,400 represents contributions and $61,019 represents earnings.In 2012, she converts her traditional IRA into a Roth IRA.What amount, if any, must Beth include in her gross income in 2012?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShe can deduct her moving expe...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

How are combined business/pleasure trips treated for travel within the United States as opposed to foreign travel?

Correct AnswerverifiedThe major difference is that transportat...View AnswerShow Answer

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$11,500 ($4,000 + $500 + $7,00...
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$52 ($27 + $25).The deduction for Mr.Bro...
View Answer

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She can deduct her moving expe...
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The major difference is that transportat...
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