Business Tax Deductions Quiz

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What is included in the category of 'Depreciation' for additional deductions?

Advertising and marketing expenses

Office supplies and furniture

Employee salaries and benefits

Machinery, equipment, and vehicles (correct)

What can be deducted as a business expense under 'Business use of home expenses'?

Using your home as a principal place of business (correct)

Personal grocery expenses

Vacation travel costs

Home renovation costs

What does 'Bad debt expenses' refer to for additional deductions?

Inventory costs

Uncollectible accounts receivable (correct)

Utility bills

Legal fees

What assets are included in depreciation for additional deductions?

Depreciating assets such as machinery, equipment, and vehicles are included in depreciation for additional deductions. Signup and view all the answers

What are bad debt expenses in the context of additional deductions?

Bad debt expenses refer to the cost of uncollectible accounts receivable, which are debts that cannot be collected from customers. Signup and view all the answers

How can the business use of home expenses be deducted as a business expense?

The cost of using your home as a principal place of business can be deducted as a business expense under business use of home expenses. Signup and view all the answers

What is depreciation in the context of additional deductions?

Depreciation in the context of additional deductions refers to the cost of depreciating assets, such as machinery, equipment, and vehicles, over their useful life. Signup and view all the answers

What are bad debt expenses and how are they related to additional deductions?

Bad debt expenses refer to the cost of uncollectible accounts receivable, which are debts that cannot be collected from customers. They are related to additional deductions as they can be included as a deductible business expense. Signup and view all the answers

How can business use of home expenses be utilized as an additional deduction?

Business use of home expenses can be deducted as a business expense if the home is used as a principal place of business. Signup and view all the answers