The CE Shop » Sales License » CA Real Estate Finance Course » 2021

Question #1

Which of the following is a true statement about business tax deductions?

A. They are not allowed for independent contractors.

B. One hundred percent of your business expenses are taken off of your income tax liability.

C. The IRS doesn't require documentation in order to claim a deduction.

D. You must maintain documentation, such as receipts, for expenses taken as deductions.

Question #2

Which of the following would be the most common form of business structure for a new licensee?

A. Sole proprietor

B. Partnership

C. C corp

D. S corp

Question #3

Which of the following would be a receipt you should save for tax purposes?

A. A ticket for a sporting event

B. Breakfast out with your football buddy

C. Entry fee to a museum

D. A toll fee for a business trip

Question #4

As independent contractors, licensees may form a(n) ______ to protect personal assets.

A. General partnership

B. LLC

C. Off-shore tax shelter

D. Sole proprietorship