Full Answer
Study with Quizlet and memorize flashcards containing terms like Nicole has a weekend home on Pecan Island that she purchased in 2013 for $250,000. Recently, the home was appraised at $260,000. After the appraisal, a hurricane hit Pecan Island, severely damaging Nicole's home. An appraisal placed the value of the home at $140,000 after the hurricane.
Erin's records reflect the following information: Paid $200 dues to a fraternal organization (such as the Elks Club) Donated stock having a fair market value of $3,500 to a qualified charitable organization.
Joe is a self-employed tax attorney who frequently entertains his clients at his country club. Joe's club expenses include the following:
Vanessa owns a houseboat on Lake Las Vegas that she personally uses for 25 days out of the year and rents for 280 days. For tax purposes, the houseboat is classified as
The activity is presumed to be a business. However, the IRS may prove it is a hobby. Vanessa owns a houseboat on Lake Las Vegas that she personally uses for 25 days out of the year and rents for 280 days. For tax purposes, the houseboat is classified as.
Joe is a self-employed tax attorney who frequently entertains his clients at his country club. Joe's club expenses include the following:
A) Independent contractors pay Social Security and Medicare tax of 15.3%. Independent contractors are responsible for their own Social Security taxes and Medicare taxes which are paid as a "self employment" tax in addition to income taxes.
Ron has accepted a temporary assignment of one year or less so the living expenses are deductible. He is an employee so the deductible expenses will be subject to the 2% of AGI floor.
Tyler is covered under a qualified retirement plan at his job and earned $175,000 in 2014. Connie is employed as a lab technician and earned $30,000 but is not covered under a qualified retirement plan. They file a joint return; have interest and dividend income of $30,000.
D) Alison is an employee who is required to travel to company facilities throughout the U.S. in the conduct of her management responsibilities. She is not reimbursed by her employer.
Under a nonaccountable plan, the employee must include reimbursements in income. The qualifying expenditure can be deducted as an itemized deduction, but entertainment expense is reduced by 50% and then the 2% of AGI floor will apply to his total miscellaneous deductions.
Joe is a self-employed tax attorney who frequently entertains his clients at his country club. Joe's club expenses include the following:
Vanessa owns a houseboat on Lake Las Vegas that she personally uses for 25 days out of the year and rents for 280 days. For tax purposes, the houseboat is classified as
The activity is presumed to be a business. However, the IRS may prove it is a hobby. Vanessa owns a houseboat on Lake Las Vegas that she personally uses for 25 days out of the year and rents for 280 days. For tax purposes, the houseboat is classified as.