CHAPTER 10-DEDUCTIONS AND LOSSES:
Any personal expenditures not specifically allowed as itemized deductions by the
tax law are nondeductible (unless they are deductible in arriving at AGI).
The election to i
EMPLOYEE AND SELF-EMPLOYEDRELATED EXPENSES
One indicia of independent contractor (rather than employee) status is when the individual
performing the services is paid based on time spent (rather than on tasks performed).
CHAPTER 7-DEDUCTIONS AND LOSSES:
CERTAIN BUSINESS EXPENSES AND LOSSES
James is in the business of debt collection. He purchased a $20,000 account receivable
from Green Corporation for $15,000. During the year, James collected $17,000 in final
CHAPTER 6-DEDUCTIONS AND LOSSES: IN
A taxpayer who claims the standard deduction cannot also deduct expenses that are
classified as deductions from AGI.
Mitch is in the 28% tax bracket. He may receive a different tax benefit fo
CHAPTER 8-DEPRECIATION, COST
RECOVERY, AMORTIZATION, AND
The concept of depreciation assumes that the asset has a determinable
useful life. True False
The basis of cost recovery property must be reduced by the cost recovery allowe