The following expenses are non-deductible, except: * Premiums paid for life insurance of an officer where the taxpayer-business is the beneficiaryExpenses of non-profit organizations from their exempt operations.Expenses of enterprises registered with PEZA which enjoys special tax privilegePremiums paid for the life insurance of an officer where the beneficiary is the officer himself or his heirs.

Nonprofit organization is the business that has been granted tax-exempt status by the Internal…

Answered: The following expenses are…

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The following expenses are non-deductible, except:

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 15MCQ

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Question

The following expenses are non-deductible, except: *

Premiums paid for life insurance of an officer where the taxpayer-business is the beneficiary
Expenses of non-profit organizations from their exempt operations.
Expenses of enterprises registered with PEZA which enjoys special tax privilege
Premiums paid for the life insurance of an officer where the beneficiary is the officer himself or his heirs.

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Data table Income: Gross profit from manufacturing operations $ 290,000 Dividends received from 25%-owned domestic corporation 26,000 Interest income: Corporate bonds 16,000 Municipal bonds 9,000 Proceeds from life insurance policy on key employee 60,000 Section 1231 gain on sale of land 7,000 Expenses: Administrative expenses 90,000 Bad debts 10,000 Depreciation: Financial accounting 65,000 Taxable income 84,000 Alternative depreciation system (for E & P) 52,000 NOL carryover 42,000 Charitable contributions: Current year (cash) 28,000 Charitable contributions: Current year (cash) 28,000 Carryover from last year 6,500 Capital loss on sale of stock 1,100 Penalty on late payment of federal taxes 650
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