Question 1

Concerning the deduction for moving expenses, what circumstances, if any, will excuse a taxpayer from meeting the time test of 39 or 78 weeks?

Accepted Answer

The time test will be disregarded if the...

Question 2

Match the statements that relate to each other. (Note: Choice L may be used more than once.) 
-Keogh (H.R. 10)  plans

Accepted Answer

A)  Cover charge paid to entertain client at a night club.
B)  Deductible even if taxpayer does not take the new job
C)  Company picnic sponsored by employer
D)  Use of Federal per diem allowance to substantiate meals while in travel status
E)  Does not have to be job relatedF) Can include cost of car insurance and automobile club duesG) Distribution from plan is taxableH) Distribution from plan is not taxableI) Expatriate (U.S. person who is employed overseas)  returns home to retireJ) Taxpayer moves to a new residence 55 miles closer to his present jobK) Country club membership feeL) Correct match not providedM) B) and I)
N) C) and G) G

Question 3

Match the statements that relate to each other. (Note: Choice L may be used more than once.) 
-Deductible moving expense

Accepted Answer

A)  Must involve the same trade or business
B)  Must be for the convenience of the employer
C)  Meals while in route
D)  Lodging while in route
E)  Out-of-town job assignment lasts for more than one yearF) Can include actual cost of parkingG) Payment for services rendered based on tasks performedH) Excludes use of MACRS depreciationI) Taxpayer has tools and helper provided for himJ) Transportation must be allocated if taxpayer spends two weeks on business and one week sightseeingK) Paralegal obtains a law degreeL) Correct match not providedM) B) and F)
N) D) and I)

Question 4

Match the statements that relate to each other. (Note: Choice L may be used more than once.) 
-Club dues not deductible

Accepted Answer

A)  Cover charge paid to entertain client at a night club.
B)  Deductible even if taxpayer does not take the new job
C)  Company picnic sponsored by employer
D)  Use of Federal per diem allowance to substantiate meals while in travel status
E)  Does not have to be job relatedF) Can include cost of car insurance and automobile club duesG) Distribution from plan is taxableH) Distribution from plan is not taxableI) Expatriate (U.S. person who is employed overseas)  returns home to retireJ) Taxpayer moves to a new residence 55 miles closer to his present jobK) Country club membership feeL) Correct match not providedM) A) and H)
N) A) and E) K

Question 5

Match the statements that relate to each other. (Note: Choice L may be used more than once.) 
-Tax home has changed

Accepted Answer

A)  Must involve the same trade or business
B)  Must be for the convenience of the employer
C)  Meals while in route
D)  Lodging while in route
E)  Out-of-town job assignment lasts for more than one yearF) Can include actual cost of parkingG) Payment for services rendered based on tasks performedH) Excludes use of MACRS depreciationI) Taxpayer has tools and helper provided for himJ) Transportation must be allocated if taxpayer spends two weeks on business and one week sightseeingK) Paralegal obtains a law degreeL) Correct match not providedM) A) and G)
N) C) and H)

Question 6

Qualifying job search expenses are deductible even if the taxpayer does not change jobs.

Accepted Answer

A) True 
 B)False

Question 7

Eileen lives and works in Mobile. She travels to Rome for an eight-day business meeting, after which she spends two days touring Italy. All of Eileen's airfare is deductible.

Accepted Answer

A) True 
 B)False  True

Question 8

The de minimis fringe benefit:

Accepted Answer

A)  Exclusion applies only to property received by the employee.
B)  Can be provided on a discriminatory basis.
C)  Exclusion is limited to $250 per year.
D)  Exclusion applies to employee discounts.
E)  None of these.F) B) and E)
G) B) and D)

Question 9

Under the actual cost method, which, if any, of the following expenses will not be allowed?

Accepted Answer

A)  Car registration fees.
B)  Auto insurance.
C)  Interest expense on a car loan (taxpayer is an employee) .
D)  Dues to auto clubs.
E)  All of these will be allowed.F) D) and E)
G) A) and B)

Question 10

Generally, a U.S. citizen is 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 11

Sue performs services for Lynn. Regarding this arrangement, use the legend provided to classify each statement.
-Sue does not work for other parties.

Accepted Answer

A)  Indicates employee status.
B)  Indicates independent contractor status.C) A) and B)
D) undefined

Question 12

The First Chance Casino has gambling facilities, a bar, a restaurant, and a hotel. All employees are allowed to obtain food from the restaurant at no charge during working hours. In the case of the employees who operate the gambling facilities, bar, and restaurant, 60% of all of Casino's employees, the meals are provided for the convenience of the Casino. However, the hotel workers, demanded equal treatment and therefore were also allowed to eat in the restaurant at no charge while they are at work. Which of the following is correct?

Accepted Answer

A)  All the employees are required to include the value of the meals in their gross income.
B)  Only the restaurant employees may exclude the value of their meals from gross income.
C)  Only the employees who work in gambling, the bar, and the restaurant may exclude the meals from gross income.
D)  All of the employees may exclude the value of the meals from gross income.
E)  None of these.F) None of the above
G) A) and C)

Question 13

Merrill is a participant in a SIMPLE § 401(k)  plan, and he elects to contribute 4% of his $40,000 compensation to the account, while his employer contributes 3%. What amount will vest immediately, if any?

Accepted Answer

A)  $0
B)  $1,200
C)  $1,600
D)  $2,800
E)  None of aboveF) A) and C)
G) C) and E)

Question 14

An education expense deduction may be allowed even if the education results in a promotion or pay raise for the employee.

Accepted Answer

A) True 
 B)False

Question 15

Under the regular (actual expense) method, the portion of the office in the home deduction that exceeds the income from the business can be carried over to future years.

Accepted Answer

A) True 
 B)False

Question 16

For the current year, Wilbur is employed as a deputy sheriff of a county. He has AGI of $50,000 and the following unreimbursed employee expenses:
​
  
How much of these expenses are allowed as deductions from AGI?

Accepted Answer

$1,510. $910 + $1,300 + $300 = $2,510 - ...

Question 17

Noah moved from Delaware to Arizona to accept a better job. He incurred the following unreimbursed moving expenses:
​
​
  
What is Noah's moving expense deduction?

Accepted Answer

$10,400 ($3,000 + $400 + $7,00...

Question 18

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 air fare is deductible.

Accepted Answer

A) True 
 B)False

Question 19

Match the statements that relate to each other. (Note: Choice L may be used more than once.) 
-Time test (for moving expenses)  waived

Accepted Answer

A)  Cover charge paid to entertain client at a night club.
B)  Deductible even if taxpayer does not take the new job
C)  Company picnic sponsored by employer
D)  Use of Federal per diem allowance to substantiate meals while in travel status
E)  Does not have to be job relatedF) Can include cost of car insurance and automobile club duesG) Distribution from plan is taxableH) Distribution from plan is not taxableI) Expatriate (U.S. person who is employed overseas)  returns home to retireJ) Taxpayer moves to a new residence 55 miles closer to his present jobK) Country club membership feeL) Correct match not providedM) D) and J)
N) C) and E)

Question 20

Madison is an instructor of fine arts at a local community college. If she spends $600 (not reimbursed) on art supplies for her classes, $250 of this amount can be claimed as a deduction for AGI.

Accepted Answer

A) True 
 B)False

Exam 11: Individuals As Employees and Proprietors

Concerning the deduction for moving expenses, what circumstances, if any, will excuse a taxpayer from meeting the time test of 39 or 78 weeks?

Correct Answer
verified
The time test will be disregarded if the...
View Answer

Match the statements that relate to each other. (Note: Choice L may be used more than once.) -Keogh (H.R. 10) plans

Correct Answer
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G

Match the statements that relate to each other. (Note: Choice L may be used more than once.) -Deductible moving expense

Correct Answer
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Match the statements that relate to each other. (Note: Choice L may be used more than once.) -Club dues not deductible

Correct Answer
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K

Match the statements that relate to each other. (Note: Choice L may be used more than once.) -Tax home has changed

Correct Answer
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Qualifying job search expenses are deductible even if the taxpayer does not change jobs.

Correct Answer
verified

Eileen lives and works in Mobile. She travels to Rome for an eight-day business meeting, after which she spends two days touring Italy. All of Eileen's airfare is deductible.

Correct Answer
verified
True

The de minimis fringe benefit:

Correct Answer
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Under the actual cost method, which, if any, of the following expenses will not be allowed?

Correct Answer
verified

Generally, a U.S. citizen is 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

Sue performs services for Lynn. Regarding this arrangement, use the legend provided to classify each statement. -Sue does not work for other parties.

Correct Answer
verified

Correct Answer
verified

Merrill is a participant in a SIMPLE § 401(k) plan, and he elects to contribute 4% of his $40,000 compensation to the account, while his employer contributes 3%. What amount will vest immediately, if any?

Correct Answer
verified

An education expense deduction may be allowed even if the education results in a promotion or pay raise for the employee.

Correct Answer
verified

Under the regular (actual expense) method, the portion of the office in the home deduction that exceeds the income from the business can be carried over to future years.

Correct Answer
verified

For the current year, Wilbur is employed as a deputy sheriff of a county. He has AGI of $50,000 and the following unreimbursed employee expenses: How much of these expenses are allowed as deductions from AGI?

Correct Answer
verified
$1,510. $910 + $1,300 + $300 = $2,510 - ...
View Answer

Noah moved from Delaware to Arizona to accept a better job. He incurred the following unreimbursed moving expenses: What is Noah's moving expense deduction?

Correct Answer
verified
$10,400 ($3,000 + $400 + $7,00...
View 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 air fare is deductible.

Correct Answer
verified

Match the statements that relate to each other. (Note: Choice L may be used more than once.) -Time test (for moving expenses) waived

Correct Answer
verified

Madison is an instructor of fine arts at a local community college. If she spends $600 (not reimbursed) on art supplies for her classes, $250 of this amount can be claimed as a deduction for AGI.

Correct Answer
verified

Exam 11: Individuals As Employees and Proprietors

Concerning the deduction for moving expenses, what circumstances, if any, will excuse a taxpayer from meeting the time test of 39 or 78 weeks?

Correct AnswerverifiedThe time test will be disregarded if the...View AnswerShow Answer

Match the statements that relate to each other. (Note: Choice L may be used more than once.) -Keogh (H.R. 10) plans

Correct AnswerverifiedG

Match the statements that relate to each other. (Note: Choice L may be used more than once.) -Deductible moving expense

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. (Note: Choice L may be used more than once.) -Club dues not deductible

Correct AnswerverifiedK

Match the statements that relate to each other. (Note: Choice L may be used more than once.) -Tax home has changed

Correct AnswerverifiedShow Answer

Qualifying job search expenses are deductible even if the taxpayer does not change jobs.

Correct AnswerverifiedShow Answer

Eileen lives and works in Mobile. She travels to Rome for an eight-day business meeting, after which she spends two days touring Italy. All of Eileen's airfare is deductible.

Correct AnswerverifiedTrue

The de minimis fringe benefit:

Correct AnswerverifiedShow Answer

Under the actual cost method, which, if any, of the following expenses will not be allowed?

Correct AnswerverifiedShow Answer

Generally, a U.S. citizen is 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

Sue performs services for Lynn. Regarding this arrangement, use the legend provided to classify each statement. -Sue does not work for other parties.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Merrill is a participant in a SIMPLE § 401(k) plan, and he elects to contribute 4% of his $40,000 compensation to the account, while his employer contributes 3%. What amount will vest immediately, if any?

Correct AnswerverifiedShow Answer

An education expense deduction may be allowed even if the education results in a promotion or pay raise for the employee.

Correct AnswerverifiedShow Answer

Under the regular (actual expense) method, the portion of the office in the home deduction that exceeds the income from the business can be carried over to future years.

Correct AnswerverifiedShow Answer

For the current year, Wilbur is employed as a deputy sheriff of a county. He has AGI of $50,000 and the following unreimbursed employee expenses: ​ How much of these expenses are allowed as deductions from AGI?

Correct Answerverified$1,510. $910 + $1,300 + $300 = $2,510 - ...View AnswerShow Answer

Noah moved from Delaware to Arizona to accept a better job. He incurred the following unreimbursed moving expenses: ​ ​ What is Noah's moving expense deduction?

Correct Answerverified$10,400 ($3,000 + $400 + $7,00...View AnswerShow 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 air fare is deductible.

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. (Note: Choice L may be used more than once.) -Time test (for moving expenses) waived

Correct AnswerverifiedShow Answer

Madison is an instructor of fine arts at a local community college. If she spends $600 (not reimbursed) on art supplies for her classes, $250 of this amount can be claimed as a deduction for AGI.

Correct AnswerverifiedShow Answer

Correct Answer
verified
The time test will be disregarded if the...
View Answer

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G

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K

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True

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

For the current year, Wilbur is employed as a deputy sheriff of a county. He has AGI of $50,000 and the following unreimbursed employee expenses: How much of these expenses are allowed as deductions from AGI?

Correct Answer
verified
$1,510. $910 + $1,300 + $300 = $2,510 - ...
View Answer

Noah moved from Delaware to Arizona to accept a better job. He incurred the following unreimbursed moving expenses: What is Noah's moving expense deduction?

Correct Answer
verified
$10,400 ($3,000 + $400 + $7,00...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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