Question 1. Ramon and Ingrid work in the field of public rela

1. Ramon and Ingrid work in the field of public relations and incur sizable entertainment expenses. Ramon is employed by a consumer products company, while Ingrid is a self-employed consultant. Regarding the tax treatment of the entertainment expenses, when would:

a. Ramon be better off than Ingrid?

b. Ingrid be better off than Ramon?

.

2. The services are performed at Sue’s premises.

3. Sue does not work for other parties.

4. Lynn determines when the services are to be performed.

5. Sue has unreimbursed expenses.

6. by Lynn.

7. helpers.

8. Sue charges by the hour for her work.

9. Sue files a Form 2106 with her Form 1040.

10. Sue files a Schedule SE with her Form 1040.

11. Sue uses her own tools.

Match the statements that relate to each other. (Note: Choice L may be used more than once.)

a. Must involve the same trade or business

b. Must be for the convenience of the employer

c. Meals while in route

d. Lodging while in route

e. Out-of-town job assignment lasts for more than one year

f. Can include actual cost of parking

g. Payment for services rendered based on tasks performed

h. Excludes use of MACRS depreciation

i. Taxpayer has tools and helper provided for him

j. Transportation must be allocated if taxpayer spends two weeks on business and one week sightseeing

k. Paralegal obtains a law degree

l. Correct match not provided

12. Characteristic of a taxpayer who has the status of an employee

13. Characteristic of a taxpayer who is self-employed

14. Actual cost method of determining auto expense

15. Automatic mileage method

16. Deductible moving expense

17. Nondeductible moving expense

18. Mixed use (both business and pleasure) foreign travel

19. Education expense that is notdeductible to maintain or improve existing skills

20. Tax home has changed