Question 1

Qualified moving expenses of an employee that are not reimbursed are a deduction for AGI.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following expenses, if any, qualify as deductible?

Accepted Answer

A)  Contributions to a Coverdell Education Savings Account (CES
A)  .
B)  Contributions to a qualified tuition program (§ 529 plan) .
C)  Job-hunting expense of FBI agent who applies for the job of city manager of Beaumont, TX.
D)  Contribution to a traditional IRA.
E)  None of these.F) None of the above
G) A) and E)

Question 3

Bob lives and works in Newark, NJ.He travels to London for a three-day business meeting after which he spends three days touring Scotland.All of his airfare is deductible.

Accepted Answer

A) True 
 B)False

Question 4

In contrasting the reporting procedures of employees and self-employed persons regarding job-related transactions, which of the following items involve people who are self-employed?

Accepted Answer

A)  Schedule C (Form 1040) .
B)  Form W-4.
C)  Form W-2.
D)  Schedule A (Form 1040) .
E)  None of these.F) B) and C)
G) A) and D)

Question 5

A U.S.citizen is always required to include in gross income the salary and wages earned while working in a foreign country even if the foreign country taxes the income.

Accepted Answer

A) True 
 B)False

Question 6

Sarah's employer pays the hospitalization insurance premiums for a policy that covers all employees and retired former employees.After Sarah retires, the hospital insurance premiums paid for her by her employer can be excluded from her gross income.

Accepted Answer

A) True 
 B)False

Question 7

For self-employed taxpayers, travel expenses are deductions for AGI.

Accepted Answer

A) True 
 B)False

Question 8

Jordan performs services for Ryan.Which of the following factors, if any, indicates that Jordan is an independent contractor rather than an employee?

Accepted Answer

A)  Ryan sets the work schedule.
B)  Ryan provides the tools used.
C)  Jordan follows a specific set of instructions from Ryan to complete tasks.
D)  Jordan is paid based on tasks performed.
E)  None of these.F) D) and E)
G) A) and B)

Question 9

A U.S.citizen who works in France from February 1, 2019 until January 31, 2020 is eligible for the foreign earned income exclusion in 2019 and 2020.

Accepted Answer

A) True 
 B)False

Question 10

In choosing between the actual expense method and the automatic mileage method, a taxpayer should consider the cost of insurance on the automobile.

Accepted Answer

A) True 
 B)False

Question 11

Amy lives and works in St.Louis.In the morning she flies to Boston, has a three-hour business meeting, and returns to St.Louis that evening.For tax purposes, Amy was away from home.

Accepted Answer

A) True 
 B)False

Question 12

Only self-employed individuals are required to make estimated tax payments.

Accepted Answer

A) True 
 B)False

Question 13

Marvin lives with his family in Alabama.He has two jobs: one in Alabama and one in North Carolina.His tax home is where he lives (Alabama).

Accepted Answer

A) True 
 B)False

Question 14

Louise works in a foreign branch of her employer's business.She earned $5,000 per month throughout the relevant period.Which of the following is correct?

Accepted Answer

A)  If Louise worked in the foreign branch from May 1, 2018 until October 31, 2019, she may exclude $40,000 from gross income in 2018 and exclude $50,000 in 2019.
B)  If Louise worked in the foreign branch from May 1, 2018 until October 31, 2019, she cannot exclude anything from gross income because she was not present in the country for 330 days in either year.
C)  If Louise began work in the foreign country on May 1, 2018, she must work through November 30, 2019 in order to exclude $55,000 from gross income in 2019 but none in 2018.
D)  Louise will not be allowed to exclude any foreign earned income because she made less than $105,900.
E)  None of these.F) A) and E)
G) A) and B)

Question 15

Which of the following factors, if any, is not a characteristic of independent contractor status?

Accepted Answer

A)  Work-related expenses are reported on Schedule A (Form 1040) .
B)  Receipt of a Form 1099 reporting payments received.
C)  Workplace fringe benefits are not available.
D)  Services are performed for more than one party.
E)  None of these is correct.F) A) and B)
G) C) and E)

Question 16

A taxpayer who claims the standard deduction may be able to claim an office in the home deduction.

Accepted Answer

A) True 
 B)False

Question 17

A taxpayer who maintains an office in the home to conduct his only business will not have nondeductible commuting expenses.

Accepted Answer

A) True 
 B)False

Question 18

A qualified trade or business includes any trade or business including providing services as an employee.

Accepted Answer

A) True 
 B)False

Question 19

A taxpayer who uses the automatic mileage method to compute auto expenses can also deduct the business portion of tolls and parking.

Accepted Answer

A) True 
 B)False

Question 20

Employees of the Valley Country Club are allowed to use the golf course without charge before and after working hours on Mondays when the number of players on the course is at its lowest.Tom, an employee of the country club, played 40 rounds of golf during the year at no charge when the nonemployee charge was $20 per round.

Accepted Answer

A)  Tom must include $800 in gross income.
B)  Tom is not required to include anything in gross income because it is a de minimis fringe benefit.
C)  Tom is not required to include the $800 in gross income because the use of the course was a gift.
D)  Tom is not required to include anything in gross income because this is a no-additional-cost service fringe benefit.
E)  None of these.F) A) and B)
G) C) and D)

Exam 11: Individuals As Employees and Proprietors

A U.S.citizen is always required to include in gross income the salary and wages earned while working in a foreign country even if the foreign country taxes the income.

Correct Answer
verified

A taxpayer who maintains an office in the home to conduct his only business will not have nondeductible commuting expenses.

Correct Answer
verified

Sarah's employer pays the hospitalization insurance premiums for a policy that covers all employees and retired former employees.After Sarah retires, the hospital insurance premiums paid for her by her employer can be excluded from her gross income.

Correct Answer
verified

A taxpayer who claims the standard deduction may be able to claim an office in the home deduction.

Correct Answer
verified

Which of the following expenses, if any, qualify as deductible?

Correct Answer
verified

Louise works in a foreign branch of her employer's business.She earned $5,000 per month throughout the relevant period.Which of the following is correct?

Correct Answer
verified

Amy lives and works in St.Louis.In the morning she flies to Boston, has a three-hour business meeting, and returns to St.Louis that evening.For tax purposes, Amy was away from home.

Correct Answer
verified

Correct Answer
verified

Bob lives and works in Newark, NJ.He travels to London for a three-day business meeting after which he spends three days touring Scotland.All of his airfare is deductible.

Correct Answer
verified

Jordan performs services for Ryan.Which of the following factors, if any, indicates that Jordan is an independent contractor rather than an employee?

Correct Answer
verified

In contrasting the reporting procedures of employees and self-employed persons regarding job-related transactions, which of the following items involve people who are self-employed?

Correct Answer
verified

For self-employed taxpayers, travel expenses are deductions for AGI.

Correct Answer
verified

A U.S.citizen who works in France from February 1, 2019 until January 31, 2020 is eligible for the foreign earned income exclusion in 2019 and 2020.

Correct Answer
verified

A taxpayer who uses the automatic mileage method to compute auto expenses can also deduct the business portion of tolls and parking.

Correct Answer
verified

A qualified trade or business includes any trade or business including providing services as an employee.

Correct Answer
verified

Which of the following factors, if any, is not a characteristic of independent contractor status?

Correct Answer
verified

Marvin lives with his family in Alabama.He has two jobs: one in Alabama and one in North Carolina.His tax home is where he lives (Alabama).

Correct Answer
verified

Qualified moving expenses of an employee that are not reimbursed are a deduction for AGI.

Correct Answer
verified

Only self-employed individuals are required to make estimated tax payments.

Correct Answer
verified

In choosing between the actual expense method and the automatic mileage method, a taxpayer should consider the cost of insurance on the automobile.

Correct Answer
verified

Exam 11: Individuals As Employees and Proprietors

A U.S.citizen is always required to include in gross income the salary and wages earned while working in a foreign country even if the foreign country taxes the income.

Correct AnswerverifiedShow Answer

A taxpayer who maintains an office in the home to conduct his only business will not have nondeductible commuting expenses.

Correct AnswerverifiedShow Answer

Sarah's employer pays the hospitalization insurance premiums for a policy that covers all employees and retired former employees.After Sarah retires, the hospital insurance premiums paid for her by her employer can be excluded from her gross income.

Correct AnswerverifiedShow Answer

A taxpayer who claims the standard deduction may be able to claim an office in the home deduction.

Correct AnswerverifiedShow Answer

Which of the following expenses, if any, qualify as deductible?

Correct AnswerverifiedShow Answer

Louise works in a foreign branch of her employer's business.She earned $5,000 per month throughout the relevant period.Which of the following is correct?

Correct AnswerverifiedShow Answer

Amy lives and works in St.Louis.In the morning she flies to Boston, has a three-hour business meeting, and returns to St.Louis that evening.For tax purposes, Amy was away from home.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Bob lives and works in Newark, NJ.He travels to London for a three-day business meeting after which he spends three days touring Scotland.All of his airfare is deductible.

Correct AnswerverifiedShow Answer

Jordan performs services for Ryan.Which of the following factors, if any, indicates that Jordan is an independent contractor rather than an employee?

Correct AnswerverifiedShow Answer

In contrasting the reporting procedures of employees and self-employed persons regarding job-related transactions, which of the following items involve people who are self-employed?

Correct AnswerverifiedShow Answer

For self-employed taxpayers, travel expenses are deductions for AGI.

Correct AnswerverifiedShow Answer

A U.S.citizen who works in France from February 1, 2019 until January 31, 2020 is eligible for the foreign earned income exclusion in 2019 and 2020.

Correct AnswerverifiedShow Answer

A taxpayer who uses the automatic mileage method to compute auto expenses can also deduct the business portion of tolls and parking.

Correct AnswerverifiedShow Answer

A qualified trade or business includes any trade or business including providing services as an employee.

Correct AnswerverifiedShow Answer

Which of the following factors, if any, is not a characteristic of independent contractor status?

Correct AnswerverifiedShow Answer

Marvin lives with his family in Alabama.He has two jobs: one in Alabama and one in North Carolina.His tax home is where he lives (Alabama).

Correct AnswerverifiedShow Answer

Qualified moving expenses of an employee that are not reimbursed are a deduction for AGI.

Correct AnswerverifiedShow Answer

Only self-employed individuals are required to make estimated tax payments.

Correct AnswerverifiedShow Answer

In choosing between the actual expense method and the automatic mileage method, a taxpayer should consider the cost of insurance on the automobile.

Correct AnswerverifiedShow Answer

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