1. Which one of the following is not deductible? As part of his business of sell
ID: 2518192 • Letter: 1
Question
1. Which one of the following is not deductible?
As part of his business of selling illegal drugs, Fred paid $200 for supplies to manufacturer the Schedule 1 drug, heroin.
When Army Captain Jones was ordered to move, he paid $400 in moving costs to move 30 miles from his old base to his new base.
Mary paid alimony to her former spouse
Mary’s sustained damage to her house after a tornado and lived in a federally declared disaster area
2.Which one of the following is not a deductible theft loss?
Canada seized Sam’s manufacturing plant located in Canada
Dean paid $10,000 to a person blackmailing him
Carl surrendered his watch to a woman that demanded it at gun point.
Exxon paid a $1,000 ransom to release its CEO from kidnappers
3.Which one of the following is not a deductible medical expense?
Betty paid $200 for a Native American shaman to treat her son’s cancer.
Kim paid a $1,000 fee when he adopted his seeing eye dog
Judy paid $500 to participate in a smoke-cessation program.
Scott paid $300 for meals as part of weight loss program
4.Which one of the following is not deductible?
Alex donated $100 to his state representative’s election campaign
Chris donated an appliance with the FMV of $200 to a local charity
Martha paid parking fees of $300 for her doctor appointments
In 2000, Fred had $100 of gambling losses and $100 of gambling winnings
5.Which one of the following is deductible?
Amy paid her annual CPA license fee of $100
Roger, who works in construction, paid $100 for safety glasses and construction hat
Lisa paid $200 in moving costs when her employer relocated her
Alice, who teaches first grade spent $100 on classroom supplies
Explanation / Answer
1. Mary paid alimony to her former spouse - it is not deductible as not related to business.
2. Carl surrendered his watch to a woman that demanded it at gun point - It is not deductible because it is his personal assets, not business related.
3. Scott paid $300 for meals as part of weight loss program - It is not deductible medical expenses
4.Fred had $100 of gambling losses - gambling losses not deductible
5. All are deductible.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.