Raymond Reddington is self-employed and for the current year had self-employment income of $80,000. His self-employment tax is $12,240. Since Raymond is effectively employing himself, he may deduct the $12,240 as a deduction for adjusted gross income.

True

False

Rex coaches the basketball team at Houston High School. In preparation for the state playoffs Rex decided to scout his probable opponent, which was playing in San Antonio. On Friday afternoon, Rex left from school and drove to San Antonio to watch the game. Later that night Rex returned to school to work on plans for the upcoming game. Rex incurred the following costs: transportation, $25; meals, $5. The costs were not reimbursed. Coach Rex may deduct

Be sure to show your work in the Calculations Submission Prompt.

	a.	$20.
	b.	$25.
	c.	$30.
	d.	$29.
	e.	$24.

During the current year, U made a $36,000 contribution to a 529 plan to help cover the cost of an undergraduate degree for D, her 15-year-old daughter. Assume three years later D elects to join the work force when she graduates from high school (rather than attend college) and the entire $45,000 accumulated in the 529 plan is distributed to U. How much is included in U's gross income?

	a.	$36,000
	b.	$45,000
	c.	$9,000
	d.	$0

A sole Proprietors income generally is subject to self employment income tax. Is the deduction for of the self employment tax deducted FOR or FROM AGI? Is it reported on Sch. C?

	a.	From AGI and reported on Sch. C.
	b.	For AGI and reported on Sch. C.
	c.	From AGI and not reported on Sch. C.
	d.	For AGI and not reported on Sch. C.

F has a son, C, who earns a $50,000 salary and has $500 interest income. During 2019 F loaned C $95,000 to go to medical school. Assume interest imputed at the IRS rate is $3,000. Which of the following statements is true about interest deemed earned by F or the amount of taxable gift before the annual exclusion?

	a.	F is charged with a taxable gift of $3,000 before the annual exclusion.
	b.	F is charged with a taxable gift of $95,000 before the annual exclusion.
	c.	F is charged with a taxable gift of $3,000 before the annual exclusion and has no interest income.
	d.	F has interest income of $3,000.
	e.	F has no interest income and no taxable gift of $3,000 before the annual exclusion.