Questions from General Taxation

Q: During the year, Cory purchased a log skidder (7-

During the year, Cory purchased a log skidder (7-year property) for $55,000 for his business. Assume that he has income from his business of $30,000, and he and his wife have combined salaries and wa...

Q: Section 179 expense is available for all of the following business assets

Section 179 expense is available for all of the following business assets except a. Office building. b. Office furniture. c. Computer. d. Delivery truck.

Q: Jordan has two jobs. She works as a night auditor at

Jordan has two jobs. She works as a night auditor at the Moonlight Motel. When her shift at the motel is over, she works as a short-order cook at the Greasy Spoon Restaurant. On a typical day, she dr...

Q: Which of the following is false with respect to the standard mileage

Which of the following is false with respect to the standard mileage rate? a. It can be used if the taxpayer owns the vehicle and uses the standard mileage rate for the first year it was placed in se...

Q: Frank purchased a vehicle for business and personal use. In 2017

Frank purchased a vehicle for business and personal use. In 2017, he used the vehicle 70% for business (11,000 business miles incurred equally throughout the year) and calculated his vehicle expenses...

Q: Jimmy took a business trip from Dallas to Brazil. He was

Jimmy took a business trip from Dallas to Brazil. He was there for a total of seven days, of which two were weekend days. Over the weekend, he spent his time sightseeing and relaxing. His expenses...

Q: Jake runs a business out of his home. He uses 600

Jake runs a business out of his home. He uses 600 square feet of his home exclusively for the business. His home is 2,400 square feet in total. Jake had $27,000 of business revenue and $22,000 of...

Q: Which of the following is not a relevant factor to be considered

Which of the following is not a relevant factor to be considered in deciding whether an activity is profit seeking or a hobby? a. Manner in which the taxpayer carries on the activity. b. Expertise of...

Q: Which of the following individuals can deduct education expenses?

Which of the following individuals can deduct education expenses? a. A real estate broker who attends college to get an accounting degree. b. A CPA who attends a review course to obtain his building...

Q: Annie is self-employed and has $58,000 in

Annie is self-employed and has $58,000 in income from her business. She also has investments that generated dividends of $3,000 and interest of $2,500. What is Annie’s self-employment tax for the ye...