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Questions and Answers
What is the allowed deduction for individual taxpayers except non-resident aliens?
What is the allowed deduction for individual taxpayers except non-resident aliens?
- 40% of gross sales or gross receipts (correct)
- Ordinary and necessary expenses
- 40% of gross income
- Charitable and other contributions
Which of the following is not an itemized deduction mentioned in the text?
Which of the following is not an itemized deduction mentioned in the text?
- Losses
- Taxes
- Pension trust (correct)
- Interests
What is the purpose of the substantiation requirement mentioned in the text?
What is the purpose of the substantiation requirement mentioned in the text?
- To ensure that deductions are only for ordinary and necessary expenses
- To limit the amount of deductions a taxpayer can claim
- To ensure that deductions are directly related to the taxpayer's trade, business or profession (correct)
- To require taxpayers to provide official receipts for all deductions
Which of the following is not mentioned as an itemized deduction in the text?
Which of the following is not mentioned as an itemized deduction in the text?
What is the allowed deduction for corporations except non-resident foreign corporations?
What is the allowed deduction for corporations except non-resident foreign corporations?
Which of the following is not a requirement for the deductibility of certain payments?
Which of the following is not a requirement for the deductibility of certain payments?
What is the allowed compensation expense for Mr. P's employees?
What is the allowed compensation expense for Mr. P's employees?
What is the Entertainment, Recreation and Amusement (EAR) expense rate for a seller of services?
What is the Entertainment, Recreation and Amusement (EAR) expense rate for a seller of services?
If Mr. C reported a net revenue of $5,000,000 and paid $30,000 in entertainment and representation expenses, how much can he deduct as EAR expense?
If Mr. C reported a net revenue of $5,000,000 and paid $30,000 in entertainment and representation expenses, how much can he deduct as EAR expense?
Which of the following is NOT considered an ordinary and necessary business expense?
Which of the following is NOT considered an ordinary and necessary business expense?
What is the requirement for the grossed-up monetary value of fringe benefits to be deductible as a compensation expense?
What is the requirement for the grossed-up monetary value of fringe benefits to be deductible as a compensation expense?
Which of the following is NOT a type of taxpayer mentioned in the text?
Which of the following is NOT a type of taxpayer mentioned in the text?
What is the tax rate for individual taxpayers except NRAETB and NRANETB?
What is the tax rate for individual taxpayers except NRAETB and NRANETB?
If a resident citizen has $800,000 in gross sales, $200,000 in cost of services, $15,000 in long-term capital gain, $5,000 in short-term capital loss, $15,000 in dividends from a domestic corporation, and $10,000 in interest income from bank deposits, and chooses the optional standard deduction, what is the amount of the optional standard deduction?
If a resident citizen has $800,000 in gross sales, $200,000 in cost of services, $15,000 in long-term capital gain, $5,000 in short-term capital loss, $15,000 in dividends from a domestic corporation, and $10,000 in interest income from bank deposits, and chooses the optional standard deduction, what is the amount of the optional standard deduction?
Which of the following is NOT a type of income mentioned in the text?
Which of the following is NOT a type of income mentioned in the text?
What is the purpose of the optional standard deduction mentioned in the text?
What is the purpose of the optional standard deduction mentioned in the text?
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