In July 2020, Mark moved from Smithfield, North Carolina, where he was stationed in the military, to San Diego, California, his new base. He drove his car from North Carolina to California. The total mileage is 3,824 miles. He paid $180 for parking and tolls, $680 for lodging, and $300 for meals during the trip. What amount of the moving expenses can Rick deduct as an adjustment to income on his 2020 tax return if he chooses to use the standard mileage rate?

a. $1,745

b. $1,510

c. $1,595

d. $1,260

Which of the following situations would allow a taxpayer to exclude the cancelation of debt income from qualified principal residence indebtedness?

a. The taxpayer was insolvent immediately prior to the cancelation of debt and the debt was for the taxpayers main home.

b. The taxpayer was insolvent immediately after the cancelation of debt and the debt was for the taxpayers main home.

c. The taxpayer must have filed bankruptcy in tax year 2020 and included the qualified principal residence indebtedness on his main home in the bankruptcy.

d. The taxpayer was insolvent immediately prior to and after the cancelation debt and the debt was for the taxpayers main home.

Hercules is a mechanic. He works full-time for a repair shop during the day. Hercules has developed a clientele over the years who bring their vehicles to him for repair work in the evenings and weekends. He realizes that accepting money for his services causes tax implications; therefore, he needs to maintain records. Which of the following best describes the records Hercules must keep to substantiate income?

Select one:

a. Cash, invoices, cash register receipts for all income, bank deposit slips, canceled checks, credit card charge receipts, reporting documents such as Forms 1099-MISC or 1099-K, inventory, rent, bank statements.

b. Cash, invoices, register receipts showing all income, bank deposit slips, canceled checks, credit card charge slips, reporting documents such as Forms 1099-MISC, or 1099-K.

c. Cash, invoices, cash register receipts for all income, bank deposit slips, canceled checks, and credit card charge slips.

d. Forms 1099-MISC or 1099-K, bank deposit slips, credit card charge slips.

Usif and Tarina have the following items for the tax year. What will be their deductible contributions on Schedule A?

• Cash (church receipt and acknowledgment letter received) $ 2,589
• Cash (Salvation Army, no receipt or bank record) $10
• Cash (Fraternal Order of Police no receipt) 75
• Cash (Neighborhood fundraiser for a childs medical procedure) 50
• Check (St. Judes for childhood cancer) 100

Select one:

a. $2,824

b. $2,689

c. $2,739

d. $2,749