1. Which of the following statements is incorrect? A. Qualified job-related expenses (e.g., auto, travel, gift expenses) spent by a self-employed taxpayer are classified as deduction for AGI. B. Only half of the qualified meal expenses can be deductible (*50% rule"). C. Self-employed taxpayers can deduct the amount of contribution on individual retirement account (IRA). The intention of the tax law is to make self-employed taxpayers fairer with employee taxpayers who can exclude contribution to retirement account from gross income. D. In addition to the $0.575 per mile auto expenses, the self-employed taxpayer who chooses the standard mileage method (rather than the actual cost method) can claim deduction on depreciation, gas and oil, repair, insurance, license expenses. E Interest on student loans is a deduction for AGLitem

1. Which of the following statements is incorrect? A. Qualified job-related expenses (e.g., auto, travel, gift expenses) spent by a self-employed taxpayer are classified as deduction for AGI. B. Only half of the qualified meal expenses can be deductible (*50% rule"). C. Self-employed taxpayers can deduct the amount of contribution on individual retirement account (IRA). The intention of the tax law is to make self-employed taxpayers fairer with employee taxpayers who can exclude contribution to retirement account from gross income. D. In addition to the $0.575 per mile auto expenses, the self-employed taxpayer who chooses the standard mileage method (rather than the actual cost method) can claim deduction on depreciation, gas and oil, repair, insurance, license expenses. E Interest on student loans is a deduction for AGLitem

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter12: Tax Credits And Payments

Section: Chapter Questions

Problem 1BCRQ

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Similar questions

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