1. Which of the following statements is incorrect? A. Qualified job-related expenses (e.g., auto, travel, gift expenses) spent by a self-employed taxpayer are classified as deduction for AGI. B. Only half of the qualified meal expenses can be deductible (*50% rule"). C. Self-employed taxpayers can deduct the amount of contribution on individual retirement account (IRA). The intention of the tax law is to make self-employed taxpayers fairer with employee taxpayers who can exclude contribution to retirement account from gross income. D. In addition to the $0.575 per mile auto expenses, the self-employed taxpayer who chooses the standard mileage method (rather than the actual cost method) can claim deduction on depreciation, gas and oil, repair, insurance, license expenses. E Interest on student loans is a deduction for AGLitem
1. Which of the following statements is incorrect? A. Qualified job-related expenses (e.g., auto, travel, gift expenses) spent by a self-employed taxpayer are classified as deduction for AGI. B. Only half of the qualified meal expenses can be deductible (*50% rule"). C. Self-employed taxpayers can deduct the amount of contribution on individual retirement account (IRA). The intention of the tax law is to make self-employed taxpayers fairer with employee taxpayers who can exclude contribution to retirement account from gross income. D. In addition to the $0.575 per mile auto expenses, the self-employed taxpayer who chooses the standard mileage method (rather than the actual cost method) can claim deduction on depreciation, gas and oil, repair, insurance, license expenses. E Interest on student loans is a deduction for AGLitem
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. Which of the following statements is incorrect?
A. Qualified job-related expenses (e.g., auto, travel, gift expenses) spent by a self-employed taxpayer
are classified as deduction for AGI.
B. Only half of the qualified meal expenses can be deductible (*50% rule").
C. Self-employed taxpayers can deduct the amount of contribution on individual retirement account
(IRA). The intention of the tax law is to make self-employed taxpayers fairer with employee
taxpayers who can exclude contribution to retirement account from gross income.
D. In addition to the $0.575 per mile auto expenses, the self-employed taxpayer who chooses the
standard mileage method (rather than the actual cost method) can claim deduction on depreciation,
gas and oil, repair, insurance, license expenses.
E. Interest on studentloans is a deduction for AGI item.
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