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1. Helen is a nurse and takes night classes at the community college. Which of the following is an incorrect statement concerning education expenses as

1. Helen is a nurse and takes night classes at the community college. Which of the following is

an incorrect statement concerning education expenses as deductible employee business

expenses?

a) Only tuition and fees are qualifying education expenses.

b) Education that qualifies the taxpayer for his first job in that field is not deductible.

c) Education that enables the taxpayer to change jobs is not deductible.

d) Education must be required by the employer or the law to keep one's salary, status, or

job, or maintain or improve skills required in his present job to be deductible.

2. Jackie is a sales representative for a cosmetic manufacturing company. During the year, she

drove 25,000 miles in total, of which 18,000 miles were for business use. She is reimbursed

under her employer's accountable plan at 30 cents per mile. Jackie wants to use the standard

mileage rate for the auto expenses if she can claim the expenses. What amount, if any, can

Jackie claim as unreimbursed employee business expenses on Form 2106 and Schedule A?

a) $5,875

b) $9,630

c) $4,230

d) $ 0

Al's father and mother were placed in a nursing home. They gave him the family farm before

their admission. The farm has been in the family for as long as his father can remember. His

father has no idea what the original purchase price of the farm was. Al's parents have made

the following improvements to the land while it was in their possession.

Installed fencing $ 6,000

Built 2 new barns $45,000

Installed a new well $ 2,250

Addition to the house $35,000

Paved driveway $ 1,100

Installed storm windows $ 3,000

The farm's Fair Market Value was $335,000 at the time of changing hands. What is Al's basis

in the farm?

a) $ 0

b) $ 83,000

c) $ 92,350

d) $335,000

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