1.Taxpayers who operate a business out of their home report the depreciation deduction for the use of the home office on ____________, and the depreciation deduction for the business equipment used in the home office is reported on ____________.

2. With respect to domestic travels, there is no need to allocate the costs of travelling to and from the destination if more than ____________ of the time gone is spent conducting business.

3. The MACRS basis of 5-year property is purchased on March 3, 2015 for $10,000. The company is using DDB and the half-year convention applies to personal property acquired in 2015. What is the depreciation expense on Form 4562 in Year 2 for 2015?

a. $2,000.

b. $1,000.

c. $1,600.

d. $3,200.

e. $2,800.

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4. If a taxpayer works a total of $1,800 hours during the year, the material participation test for rental real estate requires that more than ____________ of those hours be involved in rental real estate activities.

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