Both employees and self-employedindividual taxpayers must use Schedule A of Form
ID: 2444287 • Letter: B
Question
Both employees and self-employedindividual taxpayers must use Schedule A of Form 1040 to reporttheir business-related expenses.
For tax purposes, a statutoryemployee is treated differently than a common lawemployee.
A taxpayer who uses the automaticmileage method to compute auto expenses can also deduct thebusiness portion of automobile club dues.
An airline pilot for AmericanAirlines who pays his own travel expenses.
Meals provided at cost to employeesby a cafeteria funded by the employer.
Fourth of July company picnic foremployees.
Business gifts of $25 (orless).
None of the above.
Carl entertains one of his clientson January 1 of the current year. Expenses paid by Carl areas follows:
Cab fare
$ 42
Cover charge at supperclub
120
Dinner at club
360
Tips to waiter
80
Presuming proper substantiation,Carl’s deduction is:
$241.
$262.
$301.
$322.
None of the above.
Rick made the following giftsduring the year:
To Helen, a key client ($2 of theamount listed was for gift wrapping)
$42
To Matt, Rick’s secretary, onMatt’s birthday
24
To Irene, Rick’s boss, atChristmas
26
Presuming proper substantiation,Rick’s deduction is:
$49.
$51.
Both employees and self-employedindividual taxpayers must use Schedule A of Form 1040 to reporttheir business-related expenses.
True
False
For tax purposes, a statutoryemployee is treated differently than a common lawemployee.
True
False
A taxpayer who uses the automaticmileage method to compute auto expenses can also deduct thebusiness portion of automobile club dues.
True
False
Which, ifany, of the following is subject to the cutbackadjustment?
An airline pilot for AmericanAirlines who pays his own travel expenses.
Meals provided at cost to employeesby a cafeteria funded by the employer.
Fourth of July company picnic foremployees.
Business gifts of $25 (orless).
None of the above.
Carl entertains one of his clientson January 1 of the current year. Expenses paid by Carl areas follows:
Cab fare
$ 42
Cover charge at supperclub
120
Dinner at club
360
Tips to waiter
80
Presuming proper substantiation,Carl’s deduction is:
$241.
$262.
$301.
$322.
None of the above.
Rick made the following giftsduring the year:
To Helen, a key client ($2 of theamount listed was for gift wrapping)
$42
To Matt, Rick’s secretary, onMatt’s birthday
24
To Irene, Rick’s boss, atChristmas
26
Presuming proper substantiation,Rick’s deduction is:
$49.
$51.
$75
$92
None of theabove.
Explanation / Answer
A taxpayer who uses the automaticmileage method to compute auto expenses can also deduct thebusiness portion of automobile club dues.
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