Question 1. Madison and Christopher are staff accountants at a

1. Madison and Christopher are staff accountants at a major public accounting firm. Both are pursuing a law degree in a night program at local law school. Madison contends that the cost of the program is a deduction for income tax purposes, while Christopher maintains that it is not. Who is correct and why?

2. Logan, Caden, and Olivia are three unrelated parties who claim the standard deduction. All are married and attend Citron University and each pays tuition of $6,100. Of this payment, Logan can claim a deduction of $4,000; Caden a deduction of $2,000; and Olivia no deduction at all. Explain.

3. Meg teaches the fifth grade at a local school. During the year, she spends $1,200 for school supplies for use in her classroom. On her income tax return, some of this expense is not reported and the balance is deducted in two different places. Explain what has probably happened.

4. In connection with the office in the home deduction, comment on the following:

a. Mixed use (i.e., business and personal) of the portion of the home allocated to business.

b. The difference between directand indirectexpenses for deduction purposes.

c. The classification of the expense (i.e., dforor dfromAGI).

5. Regarding the new simplified method of computing the office in the home deduction, comment on the following independent factors.

a. Taxpayer has set aside 400 square feet for use as an office.

b. Taxpayer has repainted and recarpeted the office area.

c. In past years, taxpayer has always taken the deduction using the regular (actual expense) method.

d. The net income from the business is not large.

6. Faith just graduated from college and she needs advice on the tax treatment of the costs she incurs in connection with her first job (a sales person for a pharmaceutical company). Specifically, she wants to know about the following items:

a. Job search costs.

b. Business wardrobe cost.

c. Moving expenses.

d. Deduction for office in the home.

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.