TRUE OR FALSE Interest on loan to purchase office equipment may be deducted as an expenses or capitalized at the option of the taxpayer
Q: f a business owner paid for the business expenses with their personal account, and those expenses…
A: Business expenses are the rightful expenses which can be deducted on tax return as these expenses…
Q: the income is derived solely and exclusively from emoluments, from which tax at source is deducted…
A: Tax at source refers to the system in which taxes are withheld or deducted by the payer of income…
Q: enses from gross income. a. Both statements are true b. Both statements are false c. Only statement…
A: Taxpayer refers to the person or the entity who is liable to pay the desired tax amount to the…
Q: In Jamaica Lump sum payments in respect of the termination of employment of a person may be relieved…
A: Lump sum payments paid to an employee by an employer as a form of reward in regard for the services…
Q: TRUE OR FALSE? By forfeiture, the proceeds of the property sold are applied to satisfy the tax…
A: The tax liability is the liability which is upon the shoulders of the person who is known as the…
Q: Identify a false statement: a. If taxpayer derives income from employment only, any other income…
A: Taxable income refers to the income on which the taxpayer is liable to pay tax to the collecting…
Q: The object of distraint may either be personal and/or real properties of a delinquent taxpayer
A: Delinquent taxpayers are those taxpayers who did not pay the amount of taxes due till the deadlines.…
Q: Can Employee's expenses (Unreimbursed) be itemized
A: Unreimbursed expenses are defined as those expenses that are not given to you by employers. These…
Q: What consequences does a taxpayer face when one of several activities is no longer a passive…
A: When a taxpayer is involved in several activities and one of them is no longer considered a passive…
Q: The use of the earned income credit could result in a taxpayer receiving a refund even though the…
A: Earned Income Credit(EIC) is a type of tax credit available to U.S. Citizens that earn low income…
Q: Taxes are: Retroactive Prospective Only proportional Personal to the taxpayer
A: Taxes are only proportional
Q: a. Define the term constructive receipt. Explain its importance. b. Explain three restrictions on…
A: Receipts - The act of transferring anything of value from one party to another is acknowledged in…
Q: Which of the following is deductible from gross income? O Loss from a business receivable from a…
A: Gross income : It is the income which is taxable before allowing any deductions. Deduction are…
Q: Ordinary and necessary trade or business expenses used to generate tax-exempt income would be…
A: Deductible business expenses are expenses that a business incurs in order to earn income or conduct…
Q: at income be recognized when it is made available to the cash basis taxpayer even though there are…
A: The correct answer is True Explanation: ruling is applicable only to the taxpayer who would…
Q: True or false: After calculating your income taxes, you may find yourself owing to the IRS instead…
A: A tax is a governmental organization's mandatory financial obligation or another form of levy…
Q: Which of the following should not be claimed as deductions from gross income? A. Interest payment…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The maximum business expense deduction for gifts to customers and clients is?
A: The maximum business expense deduction allowed is $25 per person in case of gifts given to our…
Q: Which of the following is correct? a. A person with vatable sales or receipts not exceeding the…
A: Value-added tax: The value-added tax refers to an indirect tax or sales tax that lived on the…
Q: Under the cash method of tax accounting, tax deductions are taken when: a, Expenditures are made…
A: Answer: Under the cash method of tax accounting, tax deductions are taken when expenditures are…
Q: Deductions are allowed to: Employed taxpayers Individual taxpayers only Corporate…
A: Deduction refers to the claim to reduce the overall taxable income of the tax payer.
Q: statements is true? A.Deductions are not allowed unless there is a specific law authorizing the…
A:
Q: Constructive receipt means the taxpayer has:
A: Taxation refers to the process of recording, calculating, and reporting taxes owed to government…
Q: Research in detail regarding the following topics 1. Adoption Tax Credit 2. Non Business…
A: The tax credits are the amount that decreases the income tax liability of the taxpayer by allowing…
Q: TRUE OR FALSE Illegal expenses
A: Illegal expenses incurred in operating a legitimate business are deductible from gross income…
Q: Which of the following may be a current liability? Withheld Income Taxes Deposits Received from…
A: The liabilities are classified as current liabilities and long term liabilities.
Q: An employer invests money to establish a fund of money to pay future nonqualified deferred…
A: future nonqualified deferred compensation plan benefits received by an employee is not exempt from…
Q: Taxpayers report taxable rental income and all deductible rental expenses on schedule c (form 1040)…
A: Form 1040 consider being a man tax return form for business like sole proprietorship where they…
Q: The QBI deduction will reduce both the income tax and self-employment taxes owed by a self-employed…
A: Answer: False.
Q: Which of the following statements regarding the home office deduction is true? In order to qualify…
A: As long as they comply with IRS standards and maintain appropriate records, small company owners and…
Q: You are self-employed. Your business earns income during the period. You are subject to which of the…
A: Working for oneself rather than for an employer is referred to as self-employment. Self-employed…
Q: In addition to the basic tax assessed on the taxpayer, the following civil penalties will also be…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Discuss the definition of a trade or business. Why does it matter whether a taxpayer is classified…
A: Business is the operation carried by sole owner or partners that include trade and commerce and they…
Q: All expenses incurred while traveling away from a tax home during a business trip are deductible…
A: Expenses incurred in relation to business will be allowed as deductible.
Q: A cash basis taxpayer can defer income by not depositing a year-end bonus. True False
A: Cash-basis taxpayers are those who, for income tax purposes, report their income and expenses on a…
Q: 1.) Passive incomes of resident citizen derived from abroad is a.subject to final tax b.Tax exempt…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: remedy in recovering the overwithholding? a. Claim the overwithholding as tax credit for the year b.…
A: Tax is a liability for the company calculated on the income earned by the company and paid to the…
Q: Which of the following items is exempt from including into the assessable income for salaries tax…
A: Correct option is D. End of contract gratuities Explanation:
Q: Which of the following types of income are not considered self-employment income? Select one: a.…
A: Self-employment income refers to the income earned by way of trade or business income wherein the…
Q: Tax withheld from an independent contractor is known as: a. Social Security Tax b. Federal income…
A: The independent contractor is liable to pay self employed tax that includes social security tax.
Q: mpted by law or statute and it does not me on for services constitutes compensation in e as long as…
A: Compensation income refers to the form of income gained by an entity that arises out of an…
Q: Employees are subject to FUTA taxes, which are not deducted from their pay. A. True B, False
A: This question deals with Employees are subject to FUTA taxes,
Q: Unemployment taxes used to provide funds for previously employed people who are temporarily…
A: The statement is asking whether unemployment taxes are used to provide funds for people who were…
Q: Which of the followings is included in taxpayer’s gross income (i.e., taxable)?
A: 1. a) Compensatory damage payments received from physical injury by accident caused by other party…
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- Personal expenses are deductions: a. for AGI b. always deductible. c. Deductions from AGI d. non of the above.3. Which one of the following are valid deductible educational expenses? A. Professional development courses required by an employer for retaining a position. B. A tax seminar attended for reasons unrelated to one’s present job. C. A college or vocational course necessary to be considered for a job. D. A professional continuing education program that qualified the taxpayer for a new job.A taxpayer must report the full amount of gambling winnings on Schedule 1, line 8. How are gambling losses reported? Select one: a. On Schedule 1, line 22 Ob. On Schedule A, line 16, limited to gambling winnings included on Schedule 1 OC. Subtracted from gambling winnings before reporting on Schedule 1, line 8 Od. On Form 1040, line Ba as an adjustment to income
- Section 162 provides the general rule that expenses incurred in a trade or business are deductible. Reg. §1.162-5 elaborates on the deductibility of A.Travel expenses. B.Expenses of farmers. C.Repairs. D. Expenses for education1. Bad debt is an expense in the books of accounts when a provision is made for it. Such amount should likewise be deducted from gross income to arrive at taxable income. 2. The phrase "actually charged off from taxpayer's book of accounts" means that the amount of money lent by the taxpayer (in the course of his business, trade or profession) to his debtor that had been recorded in the books of account as receivable has actually become worthless as of the end of the taxable year, and that the said receivable has been cancelled and written off from the said taxpayer's books of accounts. A= 1st statement is true, second statement is false. B= 1st statement is false, second statement is true. C= Both statements are false. D= Both statement are true. с B OA DWhich item does NOT result in the recording of a liability? O a. Reasonably Possible Contingent Loss O b. Compensated Absences O c. Payroll Accrued O d. Employer Tax Accrued O e. Customer Deposits
- alculator Which of the following is not a preparer penalty? a.Tax preparers may be assessed a penalty for endorsing or cashing a refund check issued to a taxpayer. b.Tax preparers may be assessed a penalty for failing to give the taxpayer the preparer's workpapers. c.Tax preparers may be assessed a penalty for failing to keep a copy of the prepared return. d.Tax preparers may be assessed a penalty for failing to sign a tax return.A landlord who receives prepaid rent is required to report that amount as gross income when the payment is received. Why would Congress choose to do this? What problem does this create for the taxpayer? C O A. Congress taxes prepaid rental income due to the concern that taxpayers who spend the money will be unable to pay the tax when t comes due. The problem created for taxpayers is that they are taxed before they incur related expenses, such as repairs, insurance, and depreciation. Therefore, there is a mismatching of revenue and expense. O B. O C. Congress taxes prepaid rental income to collect more taxes from a taxpayer by increasing their tax bracket with the additional income. The problem this causes for the taxpayer is inconsistent taxable income from year to year and increases the risk of an audit. O D. Congress taxes prepaid rental income due to numerous landlords not reporting this income in the following tax year. The problem created for taxpayers is that they are taxed…When a taxpayer has more than one business location, including the home, how can he determine which location is the principal place of business?