Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

____ 4. Stephanie is self-employed. In 2019 she drove 1,000 miles for business out of a total 10,000 miles for the year. Her auto expenses

____ 4. Stephanie is self-employed. In 2019 she drove 1,000 miles for business out of a total 10,000 miles for the year. Her auto expenses for the year were: gasoline - $500; insurance - $1,000; repairs - $200; business parking - $400. How much is her automobile deduction if she uses the standard mileage method?

a. $580

b. $980

c. $2,680

d. $2,100

e. $210

f. $0.

____ 5. An aggressive young attorney is an employee of a small law firm that provides him with an adequate office. He uses the den in his home to prepare legal briefs and review legal documents related to his employment. Assuming the attorney lives near the firm's office and he always has easy access to the office, which of the following statements most accurately describes the deductibility of the home office expenses incurred by the attorney?

a. If the den is used exclusively for business purposes, the expenses are deductible.

b. If the den is used exclusively for business purposes on a regular basis, the expenses are deductible.

c. If the den is used exclusively for business purposes on a regular basis to work for and see clients, the expenses are deductible.

d. In this situation, the expenses are not deductible.

e. The home office deduction was completely eliminated as a result of the Tax Cuts and Jobs Act of 2017.

____ 6. T's employer provides an office for her in its downtown headquarters. Which of the following statements is true?

a. T maintains an office in her home that she uses to conduct work related to her rental property. Even though the rental activities may be considered a business, no deduction can be allowed because T's principal business is that of being an employee and its primary location is downtown.

b. T regularly meets with clients of her employer's business in her home office, which is exclusively used for such purpose. T is entitled to the home office deduction without further inquiry.

c. T maintains a home office that is exclusively used on a regular basis to conduct work regarding her investment portfolio. No deduction is allowed.

d. None of the statements above are true.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Accounting Information Systems

Authors: George H. Bodnar, William S. Hopwood

8th Edition

0130861774, 9780130861771

More Books

Students also viewed these Accounting questions

Question

How can a tapered part be turned on a lathe?

Answered: 1 week ago

Question

98 Give the characteristics of a hypergeometric distribution.

Answered: 1 week ago

Question

Describe five career management practices

Answered: 1 week ago