Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 3, Problem 21MCQ
To determine
Concept Introduction:
Deductions are the allowances given to the taxpayer as a deduction from the gross income to calculate the taxable income. Every deduction has some conditions and limits of the amount. Deductions can be for business or personal expenses.
To choose:The taxpayer qualified for a home office deduction.
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Students have asked these similar questions
In which of the following situations may the taxpayer take an education expense on Schedule C?
a.John, a plumber by trade, is taking classes to qualify as an electrician so he may take on more complex contractor jobs.
b.Henry, a self-employed administrative assistant, is taking an advanced Word computer program class through an adult school program.
c.Ann Marie, a hostess at a restaurant, is taking a review course in order to pass the certified financial planner examination.
d.Barbie, a salesperson, is flying on numerous commercial airplanes in order to observe the flight attendants so that she may improve her public relations skills.
Which of the following statements regarding deductions for home office expenses is true?
A.Deductions may be taken only if the home office is used for the taxpayer’s main business.
B.Deductions may be claimed for regular use of a part of the home that is also used regularly by other family members for meals or homework.
C.Deductions may be claimed if the taxpayer chooses to work from home in the evenings after spending the day in his office provided by his employer.
D.Deductions may be taken if the home office is used regularly for meeting clients or customers in the normal course of the taxpayer’s business.
Which one of the following taxpayers is potentially eligible for a qualified business income deduction? Select all that apply.
Question 25 options:
A shareholder of General Electric
A sole proprietor operating a restaurant
Jennifer, owner of a winery operated as an S corporation
The Red Cross.
Alan, an employee of BigCo.
Chapter 3 Solutions
Income Tax Fundamentals 2020
Ch. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Which of the following formulas represents the...Ch. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Heather drives her minivan 953 miles for business...Ch. 3 - Prob. 8MCQCh. 3 - Prob. 9MCQCh. 3 - Under the high-low method, the federal per diem...
Ch. 3 - Prob. 11MCQCh. 3 - Prob. 12MCQCh. 3 - Prob. 13MCQCh. 3 - Prob. 14MCQCh. 3 - Prob. 15MCQCh. 3 - Prob. 16MCQCh. 3 - Prob. 17MCQCh. 3 - Prob. 18MCQCh. 3 - Prob. 19MCQCh. 3 - Prob. 20MCQCh. 3 - Prob. 21MCQCh. 3 - Prob. 22MCQCh. 3 - Prob. 23MCQCh. 3 - Stewie, a single taxpayer, operates an activity as...Ch. 3 - Prob. 2PCh. 3 - Lawrence owns a small candy store that sells one...Ch. 3 - Business with gross receipts of $25 million or...Ch. 3 - Teresa is a civil engineer who uses her automobile...Ch. 3 - Prob. 7PCh. 3 - Martha is a self-employed tax accountant who...Ch. 3 - Prob. 9PCh. 3 - Go to the U.S. General Services Administration...Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Marty is a sales consultant. Marty incurs the...Ch. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Cooper and Brandy are married and file a joint...Ch. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Cindy operates a computerized engineering drawing...Ch. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Lew is a practicing CPA who decides to raise...
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