A loss from a passive activity is fully deductible as long as the taxpayer has sufficient tax basis in the activity.

Generally, losses from rental activities are considered to be passive activity losses.

Self-employed taxpayers can choose between claiming the employer portion of self employment taxes paid as an itemized deduction or a deduction for AGI.

How is depreciation expense on a residence with significant rental use (vacation home) allocated to rental use?

The phrase “ordinary and necessary” means that an expense must be appropriate and helpful for generating a profit.

Ben is employed as a carpenter and his wife, Marilyn is a self-employed consultant. Besides Ben’s salary, Ben and Marilyn own a condominium that they only rent to tourists. This year they paid $2,200 for utilities in the condo. Marilyn also paid self-employment tax of $4,200 and Ben had $3,000 of Social Security taxes withheld from his pay. Which of the following is a true statement?

All business expense deductions are claimed as itemized deductions.

In general, total deductible home office expenses are limited to the gross income derived from the business minus business expenses unrelated to the home (this is net Schedule C income before home office expenses).

Which of the following is a true statement?

Which of the following is a true statement?

All reasonable moving expenses are generally deductible.

Mike paid $4,000 of interest on a qualified education loan that he used to pay for his dependent son’s college education. How much of this payment can Mike deduct as a for AGI deduction if he files married-joint and reports modified AGI of $155,000?

Cara, who is 42 years old, had some unexpected medical expenses during 2019. To pay for these expenses (which were claimed as itemized deductions on her tax return), she received a $10,000 distribution from her traditional IRA (she has only made deductible contributions to the IRA). Assuming her marginal ordinary income tax rate is 10%, what amount of taxes and/or early distribution penalties will Cara be required to pay on this distribution?

During 2019 Rebekah, a 20-year-old full-time student, earned $3,400 during the year and was not eligible to participate in an employer-sponsored retirement plan. The general limit for deductible contributions during 2019 is $6,000. How much of a tax-deductible contribution can she make to an IRA?

Self-employed taxpayers can deduct the cost of health insurance as long as they are not eligible to participate in their spouses’ employer-provided health plan.