Identify which scenario is an appropriate tax planning strategy. A taxpayer choosing to exclude cash tips from income on annual Form 1040. A taxpayer waiting two days to sell NKE stock to take advantage of LTCG rates. A taxpayer taking a deduction for a contribution made to a friend for cancer treatment. A sole proprietor deducting vehicle costs for miles used for business AND personal purposes. Which of the following is a false statement? O Business deductions must be ordinary and necessary. In addition to being ordinary and necessary, business deductions must be reasonable. It is ok for a small business owner to deduct personal expenses as ordinary and necessary because they have control of the business. O The entity must have a profit motivate in order to be considered a business.

Identify which scenario is an appropriate tax planning strategy. A taxpayer choosing to exclude cash tips from income on annual Form 1040. A taxpayer waiting two days to sell NKE stock to take advantage of LTCG rates. A taxpayer taking a deduction for a contribution made to a friend for cancer treatment. A sole proprietor deducting vehicle costs for miles used for business AND personal purposes. Which of the following is a false statement? O Business deductions must be ordinary and necessary. In addition to being ordinary and necessary, business deductions must be reasonable. It is ok for a small business owner to deduct personal expenses as ordinary and necessary because they have control of the business. O The entity must have a profit motivate in order to be considered a business.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter1: Introductin To Taxation

Section: Chapter Questions

Problem 14P

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