Which of the following statement is wrong with respect to deductible expenses incurred by an individual taxpayer?

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter15: Taxing Business Income
Section: Chapter Questions
Problem 12DQ
icon
Related questions
Question

9. Which of the following statement is wrong with respect to deductible expenses incurred by an individual taxpayer?

a. A resident citizen of the Philippines who is earning business income abroad, aside from his income in the Philippines, is entitled to claim the 40% optional standard deduction as a deduction from his gross income within and without the Philippines. 

b. A nonresident citizen of the Philippines who is earning income as an overseas Filipino worker abroad is entitled to claim the expenses incurred therein as a deduction from total gross income. 

c. A resident citizen of the Philippines who is earning business income abroad is entitled to claim the expenses incurred abroad as a deduction from his gross income. 

d. A mixed income earner is entitled to claim only the 40% optional standard deduction as a deduction from the business and/or professional income, to the exclusion of the compensation income. 

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage