1. Would education expenses incurred by a self-employed individual be allowed in 2021 for the following expenses?|(Click the icon to view the list of expenses.)Cost of a CPA review course - $2,500Accounting continuing education expenses (including travel and conference fees) - $800Accounting continuing education expenses (Meals only) - $200Law school tuition and books - $9,000

A self employed can deduct the cost of education required for his /her…

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Accounting

Would education expenses incurred by a self-employed individual be allowed in 2021 for the following expenses?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses

Section: Chapter Questions

Problem 30P

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Would education expenses incurred by a self-employed individual be allowed in 2021 for the following expenses?
|(Click the icon to view the list of expenses.)
Cost of a CPA review course - $2,500
Accounting continuing education expenses (including travel and conference fees) - $800
Accounting continuing education expenses (Meals only) - $200
Law school tuition and books - $9,000

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