13. Which of the following statements does not apply to the deduction for student loan interest?

a. The student loan interest deduction is a deduction for AGI.

b. The deduction is available only for the first 60 months of interest payments.

c. Acceptable educational expenses include tuition, books, supplies, and room and board.

d. An interest deduction phase-out may apply.

e. None of the above.

18. A tax attorney uses a country club to entertain clients and spends the following amounts: annual dues, $1,000; personal meals, $1,500; business meals, $2,500. He uses the country club 30% for business. What is the deductible expense? Show your work for partial credit

a. $750

b. $1,050

c. $1,250

d. $375

e. None of the above. The amount is $__________

19. Which of the following items is not a miscellaneous itemized deduction?

a. Safe-deposit box for investments

b. Hobby expenses

c. Investment advice

d. Property tax on a rental property

e. All of the above are miscellaneous itemized deductions

20. Ray's employer sends him on a domestic business trip. Ray is gone for 5 days and is reimbursed for his airfare and a $330 a day per diem for meals and lodging ($80 and $250, respectively). The per diem amount does not exceed the federal per diem rate. Ray's actual cost for meals and lodging for the 5 days is $1,500. Which of the following accurately describes how Ray should treat his reimbursement and travel expenses?

a. Ray must return the excess of the $1,650 per diem ($330 x 5) over his $1,500 of actual costs.

b. Ray is taxed on the excess of the $1,650 per diem over the $1,500 of actual costs.

c. Ray deducts $200 for meals as a miscellaneous itemized deduction.

d. Ray's reimbursement is not taxable.

e. None of the above.