Which of the following is deductible from gross income? Which of the following is deductible from gross income?O Loss from a business receivable from a customer which is estimated to bedoubtful of collection.O Loss suffered from a casualty which was compensated for by insuranceO Loss incurred in selling a used delivery truck to an uncle.Loss from an illegal transaction.

Which of the following is deductible from gross income? Loss from a business receivable from a customer which is estimated to be doubtful of collection. Loss suffered from a casualty which was compensated for by insurance Loss incurred in selling a used delivery truck to an uncle. O Loss from an illegal transaction.

Which of the following is deductible from gross income? Loss from a business receivable from a customer which is estimated to be doubtful of collection. Loss suffered from a casualty which was compensated for by insurance Loss incurred in selling a used delivery truck to an uncle. O Loss from an illegal transaction.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 2BCRQ

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Similar questions

The definition of gross income in the tax law is: All items specifically listed as income in the tax law All cash payments received for goods provided and services performed All income from whatever source derived All income from whatever source derived unless the income is earned illegally
Which of the following statements is false? Group of answer choices A.Prepaid expenses are fully deductible when paid for a cash basis taxpayer. B.Reasonableness is most often considered in the context of compensation. C.Inventory can not be deducted when paid. D.You are considered to have paid at the date you pay with a credit card, even though you still owe the bank.
Which of the following statements is false? A.Prepaid expenses are fully deductible when paid for a cash basis taxpayer. B.Reasonableness is most often considered in the context of compensation. C.Inventory can not be deducted when paid. D.You are considered to have paid at the date you pay with a credit card, even though you still owe the bank.
-Which of the following should not be claimed as deductions from gross income? * interest payment on loans for the purchase of machinery and equipment used inbusiness. salaries and bonuses paid to employees. discounts given to senior citizens on certain goods and services. advertising expense to maintain some form of goodwill for the taxpayer’s business.
Which of the followings is included in taxpayer’s gross income (i.e., taxable)? a.Compensatory damage payments received from physical injury by accident caused by other party. b.Punitive damage payments received. c.Accident and health insurance payments received as loss of income under the policy purchased by the taxpayer. d.Qualified employee discount up to the gross profit percentage for goods. It is nondiscriminatory and employees work for the line of business in which the goods are being sold. e. Employee’s salary during the year, which is contributed to employee’s qualified pension plan.
1. Indicate whether the following expenditures are trade or business deductions (T), production of income deductions (PI), personal deductions (P), or are not deductible (X). Also indicate if the deductible expenditures are deductible “for” or “from” AGI. a. Interest expense on business loan b. Expenses incurred in an activity lacking a true profit motive (i.e., a hobby activity) c. Commuting expenses of individual taxpayer d. Rent payments paid by an illegal gambling business e. Payment by a business to bribe a government official
Which of the following is not deductible from gross income? Salaries and wages of employees Entertainment, amusement and recreation expenses Rental expenses Bribes, kickbacks and other similar payments ANSWER:
TRUE OR FALSE Interest on loan to purchase office equipment may be deducted as an expenses or capitalized at the option of the taxpayer
Why is the receipt of cash so rarely excluded from a taxpayer’s gross income? If an employer gave an employee a gift card to a particular store, should the employee be treated as having received cash for purposes of the income tax? Are there additional facts you might want to know?
Which of the following indemnity or award is gross income? * a. Indemnity received for injuries sustained. b. Money awarded by the court to the winning party for his claim of moral damages against the other party. c. Indemnity for lost/unpaid salaries d. None of the above
1. When a business ceases to operate and its inventories are disposed of a gain on the inventories will be treated as a capital gain unless an election is made by the selling taxpayer True or False 2. When a business ceases to operate and its accounts receivable are disposed of with the other business assets any loss on the receivables will be treated as a capital loss unless a joint election is made by the purchaser and seller. True or False
Which of the following statements is true? A.Deductions are not allowed unless there is a specific law authorizing the deduction. B.Deductions are defined simliar to the gross income definition. C.Deductions are always allowed for expenses related to a trade or business. D.Deductions are never allowed for personal expenses.