Answer of the below questions

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1. Job-seeking expenses are deductible if incurred by an individual who is presently employed and looking for work in the same trade or business

a)Only if the individual actually finds a new job
b)Regardless of whether the individual finds a new job
c)If the expenses relate to the individual’s first job
d)Both (a) and (b)
e)None of the answers provided are correct

2 .To be deductible for tax purposes, a trade or business expenditure must be for a cash basis taxpayer: a)Ordinary, Necessary, Reasonable

b)Ordinary, Necessary, Reasonable, Justified
c)Ordinary, Necessary, Reasonable, Paid
d)Ordinary or necessary

3. During the holiday season, a taxpayer gives business gifts to 25 customers. The gifts have the following fair market values: 7 gifts of property valued at $10 each 5 gifts of property valued at $20 each 13 gifts of property valued at $50 each How much can the taxpayer deduct for business gifts?

a)312.50
b)495
c)625
d)247
e)none

4. A calendar-year corporation incurs $4,000 of start-up costs. If the corporation began business on August 1 of the current year, what is the maximum amount of the start-up costs that it can deduct against business income in the current year? (round your answer to the nearest dollar)

a)3417
b)5000
c)2000
d)6333
e)4000

5. Hobby revenue $60,000. Hobby expenses are $80,000. AGI is $500,000. The amount of hobby expense that would be deductible on Schedule A is (ignoring phase-outs but not floor)

a)0
b)60000
c)40000
d)50000

6. Janet owns a 100 shares of stock which was purchased on January 4, 2013 for $84/share. On December 31, 2013 the stock was selling for $52/ share. The loss recognized for tax purposes is

a)0
b)32/share
c)84/share
d)none

7. During 2013, Hugh Hughes reported the following income and loss: Activity X ($40,000) Activity Y $20,000 Both Activity X and Activity Y are passive to Mr. Hughes. How much is the loss that Mr. Hughes may deduct in 2013?

a)50000
b)30000
c)3000
d)0
e)none

8. When a taxpayer incurs a business NOL in 2013 the taxpayer may:

a)Has to carry the NOL forward instead of back
b)Must either to elect to carry it back 2 years or carry the NOL forward 20 years
c)Carry the NOL back five years
d)all of the above