Note: Just provide the right answers no need for many information or explanations. 44 a penalty charged by a commercial bank on the early withdrawal of money from a certificate of deposit account can be deducted for adjusted gross income A true B false
Note: Just provide the right answers no need for many information or explanations.
44 a penalty charged by a commercial bank on the early withdrawal of money from a
certificate of deposit account can be deducted for adjusted gross income
A true B false
45 self-employed taxpayers deduct qualified moving expenses for AGI assuming they
pass the distance and employment tests.
A True B false
46 when taxpayer are charged an early withdrawal penalty they reduce the amount of
interest they include in gross income
A True B false
47 Deductible interest includes interest paid on a qualified home equity loan
A True B False
48 A taxpayer is allowed to take an itemized deduction for a loss resulting from
damage to the taxpayers automobile caused by a collision, even if the taxpayer was at
fault
Atrue B false
49 To be deductible as an itemized deduction. Personal property taxes must be ad
valorum taxes
A ture B false
50 When an activity ( excluding horse activities) shows a profit in any three of five
consecutive years, it is assumed to be a business rather than a hobby
A true B false
51 If a taxpayers business expense does not exceed $100, the taxpayer will not be
required to keep supporting documents to verify the deductions claimed.
A true B false
52 When employees drive their personal cars from one job to a second job, they can
take a deduction for the mileage driven between the two jobs.
A True B false
53 taxpayers can deduct costs they pay to tax professional to help them contest
income taxes assessed by the IRS
A true B false
54 cash method taxpayers who prepay expenses to be incurred in a subsequent tax
year are allowed to deduct the expense in the year of payment
A true B false
55 An accrual basis taxpayer in a qualified service business is required to accrue
service revenue that has been earned but not yet collected, even if , based on
experience, it is probably not collectible.
A true Bfalse
56 If a self-employed taxpayer has employees he can establish a SEP plan for himself
without offering the plan to all full-time( eligible employees)
A True B false
57 sole proprietors deduct amount paid to workers classified as independent
contractors as wage expense on schedule C.
A True B false
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