QUESTION NO 12:

Brad is a programming analyst and has always been an employee. He decided that he would like to try working on his own as an Independent Contractor for a change. He has spoken to his supervisor and he has offered him an agreement allowing him to perform some work for his former company - while doing work for additional companies. He is now wondering if he will still be considered an employee.Which of the following statements is inconsistent as a qualification for an Independent Contractor?

a) The taxpayer should set his own hours and work schedule. b) The taxpayer is responsible for having his own tools or equipment. c) The taxpayer usually works for more than one individual or company. d) The taxpayer receives training from the employer.

QUESTION NO 16:

All of the following statements regarding rental real estate activities are correct, except for:

a) Rental real estate activities are generally considered passive activities. b) Losses from passive activities are subject to the at-risk rules. c) Generally, losses from rental real estate activities cannot be deducted unless a taxpayer has income from other passive activities. d) Rental losses less than $25,000 are not subject to the passive loss rules.

QUESTION NO 21:

Jill became disabled after a car accident a few years ago. She is a seamstress and is fortunate her employer has allowed her to continue to work from home. Jill is wondering if she qualifies as a Statutory Employee due to the strict tax guidelines. Which of the following occupational groups fails to meet the qualifications of a Statutory Employee?

a) Agent drivers or commission drivers limited to those who distribute meat, vegetables, fruit, baked goods, beverages (other than milk products), or laundry and dry-cleaning services. b) Individuals who work at home for one employer making clothing, needle crafts, bedspreads, etc. c) A traveling salesperson who sells for one principal employer. d) Real estate agents.