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
2 .To be deductible for tax purposes, a trade or business expenditure must be for a cash basis taxpayer: a)Ordinary, Necessary, Reasonable
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?
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)
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)
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
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?
8. When a taxpayer incurs a business NOL in 2013 the taxpayer may: