Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Question
Chapter 3, Problem 9MCQ
To determine
Concept Introduction:
Deductions are the allowance 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 expenses not included in travel expense.
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Students have asked these similar questions
Which of the following is a deductible expense for an individual taxpayer?
A) Rent payments for personal use
B) Mortgage interest on a vacation home
C) Childcare expenses while working
D) Personal clothing purchases
What are allowable deductions against gross income for purposes of computing regular income tax?
Business expenses
Family support
Personal expenses by the taxpayer
Expenses of employment
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.
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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Similar questions
- The maximum business expense deduction for gifts to customers and clients is?arrow_forwardSelect all of the following that qualify as Exclusions from Income that can be excluded in determining Gross Income. Gifts Inheritances Pensions Proceeds from Life Insurance Wages Workers Compensation Benefits Dividends Alimony Forgiven Debtsarrow_forward-Which of the following should not be claimed as deductions from gross income? * interest payment on loans for the purchase of machinery and equipment used inbusiness. salaries and bonuses paid to employees. discounts given to senior citizens on certain goods and services. advertising expense to maintain some form of goodwill for the taxpayer’s business.arrow_forward
- Which of the following is a test used to determine a taxpayer's tax home? The main place of business, if the taxpayer has two or more places of business. The place where the taxpayer lived when he started the job. The place to which the taxpayer intends to return after traveling. The place at which the taxpayer makes the most money, regardless of any other considerations.arrow_forwardWhich of the following categories represent Deductions for AGIarrow_forwardFor an accrual basis taxpayer, which of the following statements is TRUE regarding prepaid income? a.Group of answer choices b.Prepaid dues & subscriptions are recognized immediately c.Prepaid rent is recognized immediately d.Prepaid royalties are recognized when earned e.Prepaid interest is recognized as it is earnedarrow_forward
- In computing the taxable gross income of a taxpayer engaged in business and/or profession, what is deducted from his total sales or revenue? a. Non-taxable business income b. Cost of goods sold or services rendered c. Both a and b d. Allowable deductionsarrow_forwardIn choosing between taking the standard deduction and itemizing deductions from AGI, what effect, if any, does each of the following have? The age of the taxpayer(s). The health (i.e., physical condition) of the taxpayer. Whether taxpayers rent or own their residence. Taxpayer’s filing status (e.g., single, married, filing jointly). Whether married taxpayers decide to file separate returns. The number of dependents the taxpayer can claim.arrow_forwardWhich of the following does NOT apply to both a W−2 and a W−3? A. Reports the total amount of wages, tips and compensation paid to the employee B. Employees use both forms to prepare their personal tax returns. C. Sent to the Social Security Administration D. Reports the total OASDI and Medicare taxes withheldarrow_forward
- Which of the following is not subject to self-employment tax? a. Gain on the sale of real estate held for investment b. Net earnings of a self-employed lawyer c. Distributive share of earnings of a partnership d. Net earnings of the owner of a shoe store e. Net earnings of the owner of a dry cleanerarrow_forwardvj subject-Accountingarrow_forwardExplain the rules governing the deductibility of expenses for self-employed persons in Mauritius, give examples to support your explanation.arrow_forward
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