Swft12 - Individual Income Taxes, 35e Test Bank Essay

9934 Words Aug 8th, 2012 40 Pages
1028. One indicia of independent contractor (rather than employee) status is when the individual performing the services is paid based on tasks performed (rather than time spent).

*a. True
b. False

1029. In some cases it may be appropriate for a taxpayer to report work-related expenses by using both Form 2106 and Schedule C.

*a. True
b. False

1030. The IRS will issue advanced rulings as to whether a worker’s status is that of an employee or an independent contractor.

*a. True
b. False

1031. Jake performs services for Maude. If Maude provides Jake with a helper and tools, this is indicative of independent contractor (rather than employee) status.

a. True
*b. False

1032. A statutory employee is not a common law
…show more content…
a. True
*b. False

1058. Qualified moving expenses include the cost of lodging but not meals during the move.

*a. True
b. False

1059. Qualified moving expenses of an employee that are not reimbursed are a deduction for AGI.

*a. True
b. False

1060. At age 65, Camilla retires from her job in Boston and moves to Florida. As a retiree, she is not subject to the time test in deducting her moving expenses.

a. True
*b. False

1061. An education expense deduction can be allowed even if the education results in a promotion or pay raise for the employee.

*a. True
b. False

1062. Lloyd, a practicing CPA, pays tuition to attend law school. Since a law degree involves education leading to a new trade or business, the tuition is not deductible.

a. True
*b. False

1063. Under the right circumstances, a taxpayer’s meals and lodging expense can qualify as a deductible education expense.

*a. True
b. False

1064. A taxpayer who always claims the standard deduction (i.e., does not itemize his or her deductions from AGI) will not be able to receive a tax benefit from any education expenses incurred.

a. True
*b. False

1065. There is no cutback adjustment for meals and entertainment as to employees who are subject to regulation by the U.S. Department of Transportation.

a. True
*b. False

1066. Crow Corporation pays for a trip to Bermuda for its two top

Related Documents