Question

True or False

1. Deductions are not allowed unless a specific provision in the tax law provides otherwise.  

2. The Tax Cuts and Jobs Act of 2017 reduced the tax benefit many taxpayers get from Itemized Deductions (Deductions From AGI).   

3. Travel expenses to attend a Convention are permitted, even if the sessions could be attended entirely online through a webinar. Taxpayers may deduct the cost of the registration fee for the Convention if the registration fee is required to provide taxpayers access to the conference.

4. Samantha was recently employed by an accounting firm, having graduated from her undergraduate with 150 credit hours. She had also passed the CPA exam. After being hired, she took a Master's level course in tax data analytics, believing that it would help her in her career advancement opportunities. The course cost her $4,200 for tuition and $450 for books. Assuming no reimbursement, Samantha can deduct $4,000 for the course?

5. In 2019, Robert entertains four key clients and their spouses at a sporting event. Business discussions occurred over dinner and during the game. Expenses were $200 (limo charge), $120 (tickets), $700 (drinks and food), and $140 (tips to servers). Assuming that these are ordinary and necessary business expenses that are reasonable in amount, Robert can deduct these expenses since he is self-employed.

6. Your friend spent 8 years getting their Medical Degree and graduated in December 2018. They were hired right away, making $200,000 in gross income for 2019. They paid $5,700 in student loan interest during 2019. Your friend can deduct $2,500 of student loan interest in 2019

7. A taxpayer's tax benefit of a for AGI deduction is determined by multiplying their effective tax rate by the allowable amount of the deduction

8. The additional Medicare taxes assessed on high-income individuals carry differing tax rates depending on the tax base

Answer 1

1. Deductions are not allowed unless a specific provision in the tax law provides otherwise.  

False- deductions are allowed when there is a specific provision. Business expenses are allowed if they are incurred for business purpose.

2. The Tax Cuts and Jobs Act of 2017 reduced the tax benefit many taxpayers get from Itemized Deductions (Deductions From AGI).   

False-

3. Travel expenses to attend a Convention are permitted, even if the sessions could be attended entirely online through a webinar. Taxpayers may deduct the cost of the registration fee for the Convention if the registration fee is required to provide taxpayers access to the conference.

False – actual travel expense required to claim deduction

4. Samantha was recently employed by an accounting firm, having graduated from her undergraduate with 150 credit hours. She had also passed the CPA exam. After being hired, she took a Master's level course in tax data analytics, believing that it would help her in her career advancement opportunities. The course cost her $4,200 for tuition and $450 for books. Assuming no reimbursement, Samantha can deduct $4,000 for the course?

True

5.In 2019, Robert entertains four key clients and their spouses at a sporting event. Business discussions occurred over dinner and during the game. Expenses were $200 (limo charge), $120 (tickets), $700 (drinks and food), and $140 (tips to servers). Assuming that these are ordinary and necessary business expenses that are reasonable in amount, Robert can deduct these expenses since he is self-employed.

True

6.Your friend spent 8 years getting their Medical Degree and graduated in December 2018. They were hired right away, making $200,000 in gross income for 2019. They paid $5,700 in student loan interest during 2019. Your friend can deduct $2,500 of student loan interest in 2019

true