Exam (elaborations)
TAX 4001 exam 2 cram.
- Course
- Institution
TAX 4001 exam 2 cram.
[Show more]
Seller
Follow
topgradesdr
Reviews received
Content preview
TAX 4001 exam 2 cram12 month rule - ANS-business can immediately deduct a prepayment if
contract doesn't last more than 1 year from 1st date of benefit
contract doesn't extend beyond the end of the taxable year following the tac year in
which the taxpayer makes a payment
2 criteria for medical expenses to be deductible - ANS-expenses paid during the year
expense for taxpayer, spouse, or dependent
2 methods computing automobile transportation expenses - ANS-actual cost method
automatic mileage method
2 ways to calculate home office deduction - ANS-regular method
simplified method
3 general categories of intangible assets - ANS-goodwill and covenants not to compete
(section 197 purchases intangibles)
business investigation expenses and start up costs
research and experimentation costs
4 reasons commuting expenses are deductible - ANS-commuting from job site to job
site
commuting to/from temp work place
commuting between 2 jobs
commuting with tools
4 things that must be knows to compute MACRS - ANS-asset's original costs
, asset's recovery period
applicable depreciation method
applicable depreciation convention
A casualty loss results from an event that's _____, _____, and _____. - ANS-identifiable
damaging to property
sudden, expected, and unusual in naturev
A charitable donation needs to be _____ with written records. - ANS-substantiated
actual cost method - ANS-includes the actual cost for gas, oil, repairs, insurance,
depreciation or leas payments, tolls, and any other expense directly connected to the
car
allowable cost recovery - ANS-cost recovery that could have been taken
allowed cost recovery - ANS-cost recovery actually taken
amortization - ANS-cost recovery for intangible property
amortization convention for goodwill and covenants not to compete (section 197
purchases intangibles) - ANS-full month convention
Are deduction for qualified tuition and related expenses allowed for taxpayers spouse
and dependents? - ANS-yes
Are employees allowed a home office deduction from 2018 - 2025? - ANS-no
Are nonbusiness bad debts allowed for lender's trade or business (like loans to friends)?
- ANS-no
automatic mileage method - ANS-56 cents per mild x number of miles + parking + tolls
bonus depreciation - ANS-taxpayers may immediately expense 100% of qualifying
property
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller topgradesdr. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now