Question 1: (Please explain your answer) (Please note all questions are for USA Federal Income Taxation) John,
Question:
Question 1: (Please explain your answer) (Please note all questions are for USA Federal Income Taxation)
John, a salesman employed by an fashion retailer, is considering opening a pizzaria. If John decides to acquire the pizzaria, any investigation expenses are:
A.
None of these.
B.
Above-the-line deductions
C.
Deductible up to $5,000 in the current year with the balance being amortized over a 180-month period.
D.
Not deductible
E.
Itemized deductions
Question 2: (Please explain your answer) (Please note all questions are for USA Federal Income Taxation)
Even if it does not meet the definition of a casualty loss, an individual may deduct a loss on personal-use property
True or False
Question 3: (Please explain your answer) (Please note all questions are for USA Federal Income Taxation)
All of the following statements are false, except:
A.
A vacation home at the beach that is rented for 200 days and used personally for 16 days is classified in the primarily rental use category.
B.
If a vacation home is classified as primarily for personal use (i.e., rented for fewer than 15 days), none of the maintenance and utility expenses can be allocated and deducted as a rental expense.
C.
The portion of property tax on a vacation home that is attributable to personal use is a deduction from AGI.
D.
If a vacation home is classified as primarily rental use, the only expenses that can be deducted are mortgage interest and property taxes.
E.
All of these statements are false.
South Western Federal Taxation Individual Income Taxes 2018
ISBN: 9781337385893
41st Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen