Homework 9

1. Mason performs services for Isabella. In determining whether Mason is an employee or an independent contractor, comment on the relevance of each of the factors listed below.

1. Mason performs services only for Isabella and does not work for anyone else
2. Mason sets his own work schedule
3. Mason reports his job-related expenses on a Schedule C
4. Mason Obtained his job skills from Isabellas training program
5. Mason performs the services at Isabellas business location
6. Mason is paid on time worked rather than on task performed

2. Milton is a resident of Mobile (Alabama) and is employed by Scaup Corporation. Because Scaup closed its Mobile office, Milton no longer has any nondeductible commuting expenses although he continues to work for Scaup. Explain why?

4. Dr Werner is a full-time professor of accounting at Pelican University. During the year, he teaches continuing education programs for CPA groups in several cities. He also serves as an expert witness in numerous lawsuits involving accounting fraud. Comment on the possible tax treatment of Dr. Werners job-related expenses.

6. In connection with 222 (deduction for qualified tuition and related expenses), comment on the relevance of the following:

1. The standard deduction is claimed
2. Enrollment at a college does not require the payment of a student activity fee
3. Miscellaneous itemized deductions are not allowed
4. The taxpayer is married and files a separate return
5. A father pays the tuition on behalf of a daughter who does not qualify as his dependent
6. The taxpayer is single and has MAGI of $80 001
7. The lifetime learning credit is claimed
8. The taxpayers, a CPA, pays for tuition and course materials to attend law school.

7. In each of the following situations, indicate whether the 50% reduction for meals applies.

1. Each year, the employer awards its top salesperson an all-expense-paid trip to Jamaica
2. The employer has a cafeteria for its employees where meals are furnished at cost.
3. The employer sponsors an annual Labor Day picnic for its employees
4. Every Christmas, the employer gives each employee a fruitcake
5. The taxpayer gives business gifts to her clients at Christmas.