Which of the following is NOT a from AGI deduction?

A.	Standard deduction

B.	Itemized deduction

C.	Personal exemption

D.	None of these. All of these are from AGI deductions

The relationship requirement for qualifying relative requires the potential qualifying relative to have a family relationship with the taxpayer. T or F

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In year 1, the Bennetts' 25-year-old daughter, Jane, is a full-time student at an out-of-state university but she plans to return home after the school year ends. In previous years, Jane has never worked and her parents have always been able to claim her as a dependent. In year 1, a kind neighbor offers to pay for all of Jane's educational and living expenses. Which of the following statements is most accurate regarding whether Jane's parents would be allowed to claim an exemption for Jane in year 1 assuming the neighbor pays for all of Jane's support?

A.	No, Jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative.

B.	Yes, because she is a full-time student and does not provide more than half of her own support, Jane is considered her parent's qualifying child.

C.	No, Jane is too old to be considered a qualifying child and fails the support test of a qualifying relative.

D.	Yes, because she is a student, her absence is considered as "temporary." Consequently she meets the residence test and is a considered a qualifying child of the Bennetts.

Catherine de Bourgh has one child, Anne, who is 18 years old at the end of the year. Anne lived at home for seven months during the year before leaving home to attend State University for the rest of the year. During the year, Anne earned $6,000 while working part time. Catherine provided 80 percent of Anne's support and Anne provided the rest. Which of the following statements regarding whether Anne is Catherine's qualifying child for the current year is correct?

A.	Anne is a qualifying child of Catherine.

B.	Anne is not a qualifying child of Catherine because she fails the gross income test.

C.	Anne is not a qualifying child of Catherine because she fails the residence test.

D.	Anne is not a qualifying child of Catherine because she fails the support test.

Taxpayers must maintain written contemporaneous records of business purpose when entertaining clients in order to claim a deduction for the expenditures. T or F

The domestic production activities deduction cannot exceed 50 percent of the wages paid to employees engaged in domestic manufacturing activities during the year. T or F

Taffy Products uses the accrual method and reports on a calendar year. On July 1st of this year Taffy paid $48,000 for warehouse rent and $18,000 for insurance on the contents of their warehouse. The rent and insurance covers the next 12 months. What amount, if any, can Taffy deduct for rent and insurance this year?

If a taxpayer places only one asset (a building) in service during the fourth quarter of the year, the mid-quarter convention must be used. T or F FALSE