Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1-Steve works as an AR clerk for Veston Corp. At Veston, he is required to work from 9 p.m. to 5 p.m. Monday through Friday

image text in transcribed

1-Steve works as an AR clerk for Veston Corp. At Veston, he is required to work from 9 p.m. to 5 p.m. Monday through Friday and is provided a computer/computer software/training for performing his duties. Veston reimburses Steve for all business expenses, and his contract indicates that his work period is indefinite. Steve also provides accounting services to two other firms during the week. Steve does not receive fringe benefits from Veston and does not have a contract with the company. Veston has classified Steve as an independent contractor? Would the IRS have a problem with this categorization? What are the factors the IRS would consider in making this decision? 2-Steve is a lawyer who utilizes a home office for administrative purposes. He has no other location where he conducts these business activities. When he is not using his home office, his family utilizes the room for recreation and entertainment. Steve would like to deduct maintenance costs associated with the home office plus an allocable share of depreciation, property taxes, and insurance associated with the home. Will Steve be able to deduct any of these home office expenses? What advice would you give to Steve if he would like to deduct all of these expenses? Assuming he is eligible for a home office deduction and his total home office expenses (both direct and indirect) are $5,000, would you recommend the simple method or the actual cost deducting home office expenses? Why? ethod of 1-Steve works as an AR clerk for Veston Corp. At Veston, he is required to work from 9 p.m. to 5 p.m. Monday through Friday and is provided a computer/computer software/training for performing his duties. Veston reimburses Steve for all business expenses, and his contract indicates that his work period is indefinite. Steve also provides accounting services to two other firms during the week. Steve does not receive fringe benefits from Veston and does not have a contract with the company. Veston has classified Steve as an independent contractor? Would the IRS have a problem with this categorization? What are the factors the IRS would consider in making this decision? 2-Steve is a lawyer who utilizes a home office for administrative purposes. He has no other location where he conducts these business activities. When he is not using his home office, his family utilizes the room for recreation and entertainment. Steve would like to deduct maintenance costs associated with the home office plus an allocable share of depreciation, property taxes, and insurance associated with the home. Will Steve be able to deduct any of these home office expenses? What advice would you give to Steve if he would like to deduct all of these expenses? Assuming he is eligible for a home office deduction and his total home office expenses (both direct and indirect) are $5,000, would you recommend the simple method or the actual cost deducting home office expenses? Why? ethod of

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

Journal entry worksheet 42 13 LLY 5 T 6 7 8 >

Answered: 1 week ago