Business deductions must be ordinary, necessary, and reasonable.What is the meaning of ordinary?

Question options:

(SECOND IS INCORRECT)

An ordinary deduction is one that occurs regularly and continuously

An ordinary deduction is one that all practitioners of a trade or business would have

An ordinary deduction is one that a practitioner of a trade or business may reasonably be expected to have given the nature of the business

none of the above

Production of Income (Section 212) expenses include

Question options:

( FIRST IS INCORRECT)

Investment expenses

Expenses related to generating taxable income that are not tied to a trade or business or investment

Expenses related to compliance, planning, or contesting any tax

All of the above

Which of the following attorney's feeswould not bedeductible?

Check all that apply!!

Question options:

Attorney's fee paid by a sole proprietor to assist in collecting delinquent accounts

Attorney's fee paid for preparing a title opinion and handling a closing pursuant to the purchase of a personal residence.

Attorney's fee paid for preparing a title opinion and handling a closing pursuant to the purchase of a rental property.

Attorney's fee paid for the purpose of preparing a Last Will and Testament.

Attorney's fee paid by a landlord to assist in the eviction of tenants

Attorney's fee paid to handle a defense of a business related criminal charge

Sally Mars rents a lake cabin to 10 days of the year and lives in the cabin for 60 days.

Which statement below describes the correct tax treatment of this vacation home?

Question options:

( FIRST IS INCORRECT)

This cabin is a rental property.Expenses must be apportioned between rental and personal use.If the rental expenses exceed the rental revenues, the taxpayer may deduct a loss (subject to the passive activity rules).The taxpayer may deduct the personal portion of the property taxes as an itemized deduction and may also deduct any mortgage interest allocated to the personal portion if the cabin is a second residence.

This cabin is a mixed use property.Expenses must be apportioned between rental and personal use.The rental expenses may only be taken up to rental income. The taxpayer may deduct the personal portion the property taxes as an itemized deduction and may also deduct any mortgage interest allocated to the personal portion if the cabin is a second residence.

The cabin is predominately personal use.The taxpayer does not have to report the rental revenue and doesn't get to deduct any rental expenses.The taxpayer may deduct property taxes and mortgage interest if the cabin qualifies as a second home.

none of the above

Mark Roberts, 45 years old, is an unmarried taxpayer with modified AGI of $85000.He is covered by an employer plan.Which of the following statements about deductible an IRA contributions by Mark is true?

CHECK ALL THAT APPLY!!

Question options:

Mark may make a reduced deductible contribution to a traditional IRA

Mark may make a $6,000 deductible contribution to a traditional IRA

Mark may not make a deductible contribution to a traditional IRA

Mark may make a $6,000 nondeductible contribution to a Roth IRA

George and Janet Morton pay $8,000 of tuition and fees for their daughter, Shauna who attends a local university.George and Janet file a joint return and have a combined modified AGI of $140,000.Regarding the Tuition and Fees deduction, which of the following statements are true?

PICK ALL THAT APPLY!!

Question options:

George and Janet may take an itemized deduction for this expenditure.

George and Janet may take a deduction FOR AGI (an Adjustment to Income).

George and Janet may not take a deduction for this expenditure.

George and Janet may take a $4,000 deduction for this expenditure.

George and Janet may take a $2,000 deduction for this expenditure.

Which of the following business meals are exempt from the 50% cutback of deduction rule?

Pick all that apply!!

Question options:

business meals with current or prospective clients

Meals supplied by the employer on the employer's premises during a staff meeting

From the employer's view, business meals of employees when they are in travel status

Employer provided food at holiday parties or picnics

Greta Thompson is a part-time real estate agent who works as an independent contractor.She drives her personal automobile for 2,000 miles during 2020 for purposes of showing houses.If she uses the standard mileage rate, what is her automobile expense for the year?

Anwer:?