mega sample test questions ch 9

mega sample test questions ch 9 - mega sample test...

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mega sample test questions ch 9 True/False Indicate whether the statement is true or false. ____ 1. In some cases it may be appropriate for a taxpayer to report work-related expenses by using both Form 2106 and Schedule C. ____ 2. Unfortunately, the IRS will not issue advanced rulings as to whether a worker’s status is that of an employee or an independent contractor. ____ 3. A statutory employee is a common law employee and is subject to income tax withholdings. ____ 4. For tax purposes, a statutory employee is treated the same as a common law employee. ____ 5. A common law employee who chooses the standard deduction will be unable to claim any unreimbursed work-related expenses as a deduction. ____ 6. After she finishes working at her main job, Jean returns home, has dinner, then drives to her second job. Jean may deduct the mileage between her first and second jobs. ____ 7. After the automatic mileage rate has been set by the IRS for a year, it can later be changed. ____ 8. In choosing between the actual expense method and the automatic mileage method, a taxpayer should con- sider the cost of insurance on the automobile. ____ 9. Amy lives and works in St. Louis. In the morning she flies to Boston, has a three-hour business meeting, and returns to St. Louis that evening. For tax purposes, Amy was not away from home. ____ 10. Janet, who lives and works in Newark, travels to Atlanta for a Thursday-Friday 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. ____ 11. The tax law specifically provides that a taxpayer cannot be temporarily away from home for any period of employment that exceeds one year. ____ 12. A taxpayer who lives and works in Tulsa travels to Buffalo for five days. If three days are spent on business and two days are spent on visiting relatives, only 60% of the airfare is deductible. ____ 13. Tired of her 60 mile daily commute, Margaret purchases a condo that is only five miles from her job. Mar- garet’s moving expenses to her new condo are allowed and can be claimed by her as a deduction. ____ 14. In November 2010, Katie incurs unreimbursed moving expenses to accept a new job. Katie can deduct any of these expenses when she timely files her 2010 income tax return even though she has not yet satisfied the 39- week time test. ____ 15. In May 2010, after 11 months on a new job, Ken is fired after he assaults a customer. Ken must include in his gross income for 2010 any deduction for moving expenses he may have claimed on his 2009 tax return.
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____ 16. Alexis (a CPA and JD) sold her public accounting practice in Des Moines and accepted a job with the Seattle office of a national law firm. Her moving expenses are not deductible because she has changed employment status (i.e., went from self-employed to employee) and changed occupations (i.e., practice of public account- ing to practice of law). ____ 17.
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mega sample test questions ch 9 - mega sample test...

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