Question 4 of 20.

Which taxpayer would be allowed to deduct vehicle expenses on Form 1040 using the standard mileage rate?

Jerome is a working partner in CBA partnership. Jerome sometimes uses his personal vehicle to visit clients. CBA has an accountable reimbursement plan.

Allison owns a mobile dog grooming business. She drives the company van to her clients homes to provide her services. She is a sole proprietor and does not have an accountable reimbursement plan.

Meli owns 50% of NTH, an S corporation. She drives a company vehicle to meet with clients.

Roger owns 100% of RTBR, a C corporation. He sometimes uses his personal vehicle to visit with clients. RTBR does not have an accountable plan but reimburses Roger for his mileage.

Question 5 of 20.

Parker and Gina, a married couple, have decided to start an interior design business. They have fomed an LLC and do not live in a community property state. Which type of business entity is NOT available for their business?

C corporation.

Partnership.

Qualified Joint Venture.

S corporation.

Question 6 of 20.

Zoe is a 50% owner of Hats by Zoe, an S corporation. She receives wages for services to the S corporation. Which tax documents should she receive from Hats by Zoe?

Schedule K-1 (Form 1120-S) for her share of income and deductions and Form 1099-DIV for her wages.

Schedule K-1 (Form 1120-S) for her share of income and deductions and Form W-2 for her services.

Form W-2 for her wages and Form 1099-DIV for her share of income.

Form 1099-NEC for her wages and Form 1099-DIV for her share of income.