MLM Directory

Help me with these expenses and tax questions cuz i have no clue how to answer.?

2.Earl Entertains several of his clients on January 1 of the current year. Expenses are as follows: Cab Fare $50 Cover Charge at supper club $120 Dinner at club$420 Tips to waiter$ 100 a.$310 b.$345 c.$370 d.$430 e.None of the above 3.Iris, a calendar year cash basis taxpayer, owns and operates several TV rental outlets in Florida, and wants to expand to other states. During 2009, she spends $14,000 to investigate TV rental stores in South Carolina and $9,000 to investigate TV rental stores in Georgia. She acquires the South Carolina operations, but not the outlets in Georgia, As to these expenses, Iris should: a.Expense $23,000 for 2009 b.Capitalize $14,000 and not deduct $9,000 c.Expense $9,000 for 2009 and capitalize $14,000 d.Capitalize $23,000 e.None of the above 4.In 2010, rick had the following insured personal casualty losses ( all arising from one casualty). Rick aslo had $18,000 AGI for the year Fair Market Value Insurance Asset Adjusted BasisBefore AfterRecovery A$1,200$1,100 $300$100 B$3,000$2,000 -0- $500C$700 $900 -0- $200 Rick’s casualty loss deduction is: a.$400 b.$600 c.$800 d.$1000 E. $1,400 5.Which of the following items would be an itemized deduction on Schedule A of Form 1040 not subject to the 2%-of-AGI floor? a.Professional dues paid by an accountant (employed by Ford Motor Co.) to the National Association of Accountants. b.Gambling Losses to the extent of gambling winnings c.Job hunting costs d.Tax Return preparation fees e.None of the above 6.Phil is advised by his family physician that his dependent son, Tony, needs surgery for a benign tumor in his leg, Phil and his son travel to Rochester, Minnesota, for in-patient treatment at the Mayo Clinic, which specializes in this type of surgery. Phil incurred the following costs: -Round-trip airfare ($375 each)$750 -Phil’s hotel in Rochester for four nights ($105 per night)$420 -Phil’s meals while in Rochester$150 -Tony’s medical treatment$1,500 -Tony’s Presciption medicine$300 Compute Phil’s medical expenses for the trip 9 before the 7.5% floor) a.$2,525 b.$2,545 c.$2,825 d.$2,900 e.None of the above 7.A participant, who is age 38, in a cash or deferred arrangement plan [401k] may contribute up to what amount in 2009? a.$12,000 b.$15,500 c.$16,500 d.$20,500 e.None of the above 8.Which, if any, of the following expenses is subject to the 2%-of-AGI floor? a.Union dues of an employed machinist b.Moving expenses (not reimbursed by employer) c.Teaching supplies (up to 250) purchased by a fifth grade teacher d.Gambling losses ( to the extent of gambling gains) e.None of the above 9.Harry divorced Wanda during the year. He incurred the following legal expenses as itemized on the bill from his attorney -Fees related to property division$500 -Fees related to the determination of dependency exemption $150 -General legal fees incident to divorce$900 How much can Harry deduct? a.$0 b.$150 c.$650 d.$1,550 e.None of the above 10.Which of the following is not relevant in deciding whether an activity is profit-seeking of a hobby? a.The time and effort expended b.The expertise of the taxpayers or their advisers c.The history of income or losses from the activity d.The tax benefits of the activity to the taxpayer e.All of the above factors are to be considered 11.During the current year, Hugh, a self-employed individual, paid the following amounts: -Real estate Tax on Iowa Residence $3,800 -State income Tax$1,750 -Real estate taxes on land in Puerto Rico (held as an investment)$1,100 -Gift Tax paid on gift to daughter$1,200 -State Occupational license fee$300 -Property tax on value of his automobile (used 100% for business) $475 What is the Max amount Hugh can claim as taxes in itemizing deductions from AGI? a.$6,600 b.$6,650 c.$7,850 d.$8,625 e.None of the above 12.Trade and business expenses should be treated as: a.A Deduction from AGI subject to the 2%-of-AGI floor b.A deduction from AGI not subject to the 2%-of-AGI floor c.Deductible for AGI d.An itemized deduction if not reimbursed e.None of the above

Public Comments

1. Go to irs. gov and look up the info.