Chapter 4 Quiz.pdf - 1 DRILL.deductions.from.gross.income...

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1. DRILL.deductions.from.gross.income2. DRILL.rules.for.standard.deductionIndicate whether the following statements are "True" or "False" regarding deductions from gross income.a. Nonbusiness expenses are expenses incurred in connection with an income-producing activity that doesnot qualify as a trade or business. Such expenses are deductions for adjusted gross income.b. As a general rule, personal expenditures are disallowed as deductions in arriving at taxable income.c. AGI is an important subtotal that serves as the basis for computing percentage limitations on certainitemized deductions.d. In lieu of claiming itemized deductions, taxpayers will use the standard deduction.Tax Drill - Rules for Standard DeductionIndicate whether the following statements are "True" or "False" regarding the standard deduction.a.The standard deduction is the sum of two components: the basic standard deduction and the additionalstandard deduction.b.Certain taxpayers are not allowed to claim any standard deduction, and the standard deduction is limitedfor others.c.Taxpayers are allowed to deduct the lesser of itemized deductions or the standard deduction. The choice3. DRILL.dependents4. DRILL.dependency.testsTax Drill - Deductions from Gross IncomeIndicate whether the following statements are "True" or "False" regarding deductions from gross income.a. Nonbusiness expenses are expenses incurred in connection with an income-producing activity that doesnot qualify as a trade or business. Such expenses are deductions for adjusted gross income.b. As a general rule, personal expenditures are disallowed as deductions in arriving at taxable income.c. AGI is an important subtotal that serves as the basis for computing percentage limitations on certainitemized deductions.d. In lieu of claiming itemized deductions, taxpayers will use the standard deduction.Tax Drill - Rules for Standard DeductionIndicate whether the following statements are "True" or "False" regarding the standard deduction.a.The standard deduction is the sum of two components: the basic standard deduction and the additionalstandard deduction.b.Certain taxpayers are not allowed to claim any standard deduction, and the standard deduction is limitedfor others.c.Taxpayers are allowed to deduct the lesser of itemized deductions or the standard deduction. The choice

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