Questions from Federal Taxation


Q: Explain the difference in the of tax treatment business and nonbusiness bad

Explain the difference in the of tax treatment business and nonbusiness bad debts.

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Q: What accounting method must be used to account for bad debts that

What accounting method must be used to account for bad debts that result from the sale of merchandise or the provision of services?

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Q: Explain how the tax benefit rule may apply to bad debt deductions

Explain how the tax benefit rule may apply to bad debt deductions.

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Q: What activities qualify for the qualified production activities deduction?

What activities qualify for the qualified production activities deduction?

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Q: Explain how a taxpayer determines qualified production activities income and how a

Explain how a taxpayer determines qualified production activities income and how a taxpayer calculates their qualified production activities deduction.

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Q: Are sales taxes deductible? Explain.

Are sales taxes deductible? Explain.

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Q: Are all legal fees paid by a taxpayer deductible? Explain.

Are all legal fees paid by a taxpayer deductible? Explain.

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Q: Why are deductions for adjusted gross income "better" than deductions

Why are deductions for adjusted gross income "better" than deductions from adjusted gross income?

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Q: What is an accountable employee expense reimbursement plan? What is the

What is an accountable employee expense reimbursement plan? What is the significance of such a plan?

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Q: Why are self-employed taxpayers allowed to deduct their medical insurance

Why are self-employed taxpayers allowed to deduct their medical insurance premiums and self-employment tax for adjusted gross income?

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