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You are watching: Which of the following business expense deductions is most likely to be unreasonable in amount




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Individual proprietors report their organization revenue and also deductions on A. Form 1065B. Form 1120SC. Schedule CD. Shceudle AE. Form 1041
According to the inner revenue code 162 deductible organization prices need to be one of the following:A. incurred for the production of investment incomeB. simple and necessaryC. minimizedD. correct and measurableE. individual and also justifiable
Which of the following is not most likely to be allowed as a current deduction for a landscaping and also nursery business?A. cost of fertilizerB. accountancy feesC. cost of a greenhouseD. cost of uniforms for employeesE. a cash settlement for trade name infringement
The IRS would the majority of most likely use the arms size transactivity text to identify which of the following?A. whether an expenditure is pertained to a business activityB. wherter an expenditure will certainly be most likely to product incomeC.timeliness of an expenditureD. reasonableness of an expenditureE. All of the over
Which of the complying with service cost deductions is many likely to be unreasonable in amount?A. Compensation passist to the taxpayers sousage in excess of salary paymments to various other employees.B. Amounts passist to a subsidiary corporation for business wbelow the amount is in excess of the cost of equivalent solutions by completing corporationsC. Cost of entertaining a from client as soon as there is no opportunity of any type of future None of the above is most likely to be unreasonalbe in amountE. A, B, and C are all most likely to be taken into consideration unseasonable in amount.
Which of the complying with is a true statementA. Interemainder cost is not deductible if the loan is used to purchase municipal bonds.B. Insurance premiums are not deductible if paid for "essential man" life insuranceC. One fifty percent of the price of buiness meals is not deductibleD. All of the above are true.E Namong the above is true.
Which of the adhering to expenditures is many liekly to be dueductible for a construction business?A. A fine for a zoning violationB. A tax underpayment penaltyC. An under the table payment to a federal government rep to acquire a far better price for raw materialsD. a payment to a foreign offical to expedite an apllicattion ofr a service permitE. An arms size payment to a associated party for emergency repairs of a sewage line.
Which of the adhering to is an explanation for why insurance premiums on essential employee are not deductible?A. the insurance deducation and learning would certainly counter taxable revenue without the potential for the proceeds generating taxable income.B. The federal govermnement does not wan to subsidize insurance carriers.C. It is imvaluable to map insurance premiums to the receipt of proceeds.D. Congress presumes that all expenses are not deductible unmuch less specifically enabled in the internal Revenue Code.E. This ascendancy was grandfathered create a time as soon as the IRC disalowed all insurance premiums deductions .
Penis pays insurance premiums for his emplyees. What form of insurance premium is not deductible as compensation paid to the emplyee?A. Health insurance with benefits payable to the employeeB. Whole life insurance whith benefits payable to the employee dependents C. Group trm life insurance with benefits payable to the employee dependentsD. Key male life insurance through benefits payable to DickE. All
Which of the complying with is a true statement?A. Meals are never deductible as a organization price.B. An employer can just deduct fifty percent of any type of meals gave to employeesC. The price of business meals should be reasonable.D. A taxpayer deserve to only deduct a meal for a client if organization is discussed during the meal.E. None
In order to deduct a section of the cost of a service meal which of the following problems should be met?A. A client (not a supplier or vendor) have to be existing at the meal.B. The taxpayer or an employee need to be present at the mealC. The full cost have to be extravagant.D. The meal must happen on the taxpayers organization premisesE. None
Which of the following is likely to be totally deductible service expense?A. Incomes in excess of the industry average paid to tempt talented employees.B. The cost of employee unifirms that deserve to be adjusted to plain personal wear.C. A speeding fine phelp by a trucker who was transporting a rush orderD. The expense of a 3 year subscription to a service publicationE. None
Which of the adhering to is a true statement?A. Meal, lodging, and incidental expenditures are just deductible if the taxpayer is amethod from residence overnight while traveling.B. Meals are deductible for an employee who is compelled to job-related throughout the lunch hour.C. When a taxpayer travels specifically for company objectives only half of the expense of take a trip are deductible.D. If travel has actually both company and personal facets the expense of transport is constantly deductible but the dedutiblity of lodging depends upon whether organization is carried out that day
Which of the complying with is a true statement about take a trip that has both service and individual aspects?A. Transporation costs are always totally deductibelB. Meals are not deductible for this kind of travel.C. Only fifty percent of the cost of meals and also transport is deductibleD. The cost of lodging and incidental expenditures is restricted to theose incurred during the business percentage of the take a trip
John is a self employed computer system consultant that stays and functions in Dallas. John passist for the following activities in conjunction through his organization. Which is not deductible in any type of amount?A. 1B. 2C. 3D. 4E. None
Which of the complying with expenses are totally deductibleA. 1,000 spent on compensating your brvarious other for a personal expenseB. $50 invested on meals while traveling on organization.C. $2000 spent by the employer on reimbursing an employee for entertainmentD. AllE. None
Which of the complying with is true statement around the domestic production deduction?A. This deduction is identified by the amount of items produced in the US for export abroad.B. The deduction is caluclated as percent of the price of items manufacture in the USC. This deduction represents a subsidy to taxpayers that manufacture or construct goods in the united says.D. The residential production deduction is not affected by the price of labor.E. All
Qualified production tasks income is defined as follows for objectives of the domestic manufacturing deduction.A. net income from selling or leasing residential property the taxpayer manufctured in the USB. revenue from marketing or leasing building the taxpayer manufactured in the USC. Revenue from marketing or leasing home the taxpayer manufctured in the US but the revneue was less that 50 percent of qualifying weras used in the manufacturing.D. 6% of revenue from selling or leasing residential property that taxpayer manufactured in the USE. None
Which of the adhering to cannot be selected as a valid tax year endA. Dec 31B Jan 31C. The last friday of the last week of JuneD. Dec 15E. A taxes year have the right to end on any kind of of these days
When does the all occasions test under the accrual strategy call for the acknowledgment of revenue from the sale of goods?A. once the title of the items passes to the buyerB. as soon as the organization receives paymentC. once payment is due from the buyer.D. the earliest of the above 3 datesE.None
Beth operates a plumbing firm. In august of last year she signed a contract to carry out plumbing services for a renovation. Beth started the work that August and finished the work-related in Dec of last year. However, Beth didnt bill the client until Jan of this year and also she didnt get the payment till March once she obtained payment in complete. When should Beth identify revenue under the accrual method of accounting?A. In august of last yearB. IN Dec of last yearC. In Jan of this yearD. In March of this yearE. In April of this year
Which of the follwoing forms of transactions may not typically be accounted for utilizing the cahs methodA. sales of inventoryB. servicesC. purcheases of machineryD. payments of debtE. sales of sec by an investor
Which of the complying with tpes of expenditures is not topic to capitalization under the UNICAP rulesA. selling expenditruesB. expense of manufcauring laborC. Compensation of supervisors who supervise productionD. expense of raw materialsE. All
Which of the following is payment liabilityA. Tort claimsB. RefundsC. Insurance premiumsD. Real estate taxesE. All of the over
Joe is a self employed electrician who opeprices his company on the accrual strategy. This year Joe purhsituations a shop for his company and also at year end he got a bill for 4500 of prop taxes on his ship. Joe didnt pay the taxes till after year finish. Which of the adhering to is true statement?A. If he elects to treat the taxes as a recurring item, Joe deserve to accrue and also deduct 4500 of taxes on the shop this year.B. THe taxes are a payment liabilityC. The taxes would certainly not be deductible if Joes company was on the cash approach.D. Unmuch less Joe makes an election, the taxes are not deductible this year.E. All
Which of the following is NOT taken into consideration a associated party for the function of limitation on accruals to connected parties?A. Spousage as soon as the taxpayer is an individualB. A partner when the taxpayer is a paternshipC. Brvarious other as soon as the taxpayer is an individualD. A minority shareholder once the taxpayer is a corporationE. All
Which of the complying with is true statement around bookkeeping for organization activities?A. An all at once accounitng approach can just be embraced with the permission of the commissionerB. An all at once accounting technique is initially adopted on the first return filed for the businessC. The cash strategy have the right to just be adopted by individual taxpayers.D. The accrual strategy deserve to just be adopted by corpoprice taxpayers.E. None
Which of the adhering to is a true statement around impermissible accountancy methodsA. an impermissible technique is adopted by utilizing the strategy to report results for two consective years.B. an impermissible method may never before be supplied be supplied by a taxpayerC.Cash technique bookkeeping is an impermissible strategy for partnerships and also subchapter S electing corporationsD. THere is no accounting technique that is impermissibleE. None
Which of the adhering to is true statement around a research for a readjust in accounting method?A. Some researches are instantly grantedB. Many research require the permission of the commissionerC. Many type of repursuit call for payment of a fee and also an excellent service objective for the readjust.D. Form 3115 is forced to be filed via a rpursuit for adjust in audit method.E. All
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