deductions∶employeeandself-employed-relatedexpenses(编辑修改稿)

deductions∶employeeandself-employed-relatedexpenses(编辑修改稿)内容摘要：

J: 1 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 4. Arnold performs services for Jake. If Jake provides a helper and tools, this is indicative of independent contractor (rather than employee) status. ANS: F Since Jake provides the helper and tools, Arnold probably is an employee. PTS: 1 DIF: 1 REF: p. 93 OBJ: 1 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 5. A statutory employee is not a mon law employee and is not subject to ine tax withholdings. ANS: T A statutory employee is not subject to ine tax withholdings and is not a mon law employee. PTS: 1 DIF: 1 REF: p. 94 OBJ: 1 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min Deductions: Employee and SelfEmployedRelated Expenses 97 tax purposes, a statutory employee is treated differently than a mon law employee. ANS: T Among other differences, statutory employees claim these expenses as deductions for AGI on Schedule C. PTS: 1 DIF: 1 REF: p. 94 OBJ: 1 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 7. A mon law employee who chooses the standard deduction will be unable to claim any unreimbursed workrelated expenses as a deduction. ANS: F Some of an employee’s workrelated expenses are deductions for AGI (., moving expenses, educator teaching supplies). PTS: 1 DIF: 1 REF: p. 914 | p. 925 OBJ: 4 | 7 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 8. The workrelated expenses of an independent contractor will not be subject to the 2%ofAGI floor. ANS: T The expenses are deductions for AGI. Only certain itemized deductions are subject to the 2% limitation. PTS: 1 DIF: 1 REF: p. 939 OBJ: 1 | 11 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 9. After he finishes working at his main job, Bill returns home, has dinner, then drives to his second job. Bill may deduct the mileage between his home and the second job. ANS: F The deduction is based on the mileage between the first and the second job. PTS: 1 DIF: 1 REF: Example 5 OBJ: 2 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 10. Once the IRS has determined the automatic mileage rate for a year, it cannot be later changed. ANS: F Because of rising fuel costs, the IRS raised the rate by 8 cents in midyear 2020. PTS: 1 DIF: 1 REF: p. 96 OBJ: 2 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 2 min 11. In choosing between the actual expense method and the automatic mileage method, a taxpayer should consider the cost of insurance on the automobile. 98 2020 Comprehensive Volume/Test Bank ANS: T If taxpayer lives and works in a metropolitan area and a significant mute is involved, car insurance premiums could be quite costly. PTS: 1 DIF: 1 REF: p. 97 | p. 939 OBJ: 2 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 2 min 12. A taxpayer who uses the automatic mileage method to pute auto expenses can also deduct the business portion of parking. ANS: T Such cost is deductible under both methods. PTS: 1 DIF: 1 REF: p. 96 OBJ: 2 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 2 min 13. Once the automatic mileage method is used, a taxpayer cannot for a later year change to the actual cost method. ANS: F A change is permitted if appropriate adjustment for depreciation deemed claimed is made. PTS: 1 DIF: 1 REF: Example 9 OBJ: 2 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 2 min 14. For tax purposes, ―travel‖ is a broader classification than ―transportation.‖ ANS: T Travel expenses include transportation expenses and meals and lodging while away from home in the pursuit of a trade or business. PTS: 1 DIF: 1 REF: p. 98 OBJ: 2 | 3 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 2 min 15. Amy lives and works in St. Louis. In the morning she flies to Boston, has a threehour business meeting, and returns to St. Louis that evening. For tax purposes, Amy was away from home. ANS: F The absence must be a period substantially longer than an ordinary day’s work and must require rest. PTS: 1 DIF: 1 REF: p. 98 OBJ: 3 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 2 min 16. Ja, who lives and works in Newark, travels to Atlanta for a ThursdayFriday business conference. She stays over after the conference and visits relatives and friends on Saturday. Under certain circumstances, the meals and lodging expenses for Saturday can be considered as business related. ANS: T PTS: 1 DIF: 1 REF: Tax in the News on p. 99 OBJ: 3 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min Deductions: Employee and SelfEmployedRelated Expenses 99 17. Marvin lives with his family in Alabama. He has two jobs: one in Alabama and one in North Carolina. Marvin’s tax home is where he lives (Alabama). ANS: F Marvin’s tax home is where his principal job is located. This is determined by considering numerous factors, among which are the level of ine earned and the amount of time spent. Thus, it is incorrect to resolve the tax home issue without more facts. PTS: 1 DIF: 1 REF: Example 13 OBJ: 3 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 18. A taxpayer who lives and works in Kansas City is sent to Chicago on an eightday business trip. While in Chicago, taxpayer uses the hotel valet service to have some laundry done. The valet charge is a deductible travel expense. ANS: T Valet service is part of the travel expense deduction. PTS: 1 DIF: 1 REF: p. 98 OBJ: 3 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 2 min 19. The tax law specifically provides that a taxpayer cannot be temporarily away from home for any period of employment that exceeds one year. ANS: T PTS: 1 DIF: 1 REF: 167。 162(a) | p. 99 OBJ: 3 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 2 min 20. A taxpayer who lives and works in Tulsa tra。