A business bad debt is deductible for tax purposes as a(n): d. A business bad debt is deductible for tax purposes as an ordinary business deduction.
A business machine valued at $800 was contributed to a charitable organization during the year. The machine cost $1,000 but was depreciated down to $600 before the donation was made. Indicate the correct income tax treatment with respect to the donation. a. An ordinary income property charitable deduction is limited to basis. There is no income recognition when making a charitable donation.
A business tax deduction for business gifts is restricted to $25 per year per: d. A business tax deduction for business gifts is restricted to $25 per individual donee per year.
A calendar-year corporation incurs $53,000 of start-up costs. If the corporation began business on August 1 of the current year, what is the maximum amount of the start-up costs that it can deduct against business income in the current year? d. Taxpayers are allowed $5,000 in the rst year, plus amortization of the remaining balance over 180 months. The $5,000 is reduced, however, by the amount by which start-up costs exceed $50,000. Thus, in this case, the corporation may deduct $2,000 plus ($51,000 / 180 months x 5 months) = $3,417.
A contribution made to the following donee is not deductible: b. Oxford University, England Charitable contributions must be made to charities that are incorporated in the United States.
A corporation paid $50,000 for qualied child care expenses during the year in order to provide child care for its employees. The corporations child care credit is: a. $0 b. $5,000 c. $10,000 d. $12,500 e. $25,000 d. $50,000 x 25%
A deduction for salaries and wages can include: d. A deduction for salaries and wages can include both bonus payments and payments for services performed in prior years.
A nonbusiness bad debt is deductible