Question

Charishma, a CPA, paid the following expenses in pursuing her profession:

-Professional society dues -$450

-Tax and accounting journals -$250

How much of these expenses can be deducted if she is an employee of an accounting firm, and how much is deductible is she is a self-employed CPA? Ignore any potential limitations based on AGI.

Group of answer choices

Employee -$0; Self-employed -$0

Employee -$700; Self-employed -$700

Employee -$0; Self-employed -$700

Employee -$700; Self-employed -$0

Answer 1

Answer is third one that is

employee-0$

Self-employed-700$.

Exploratory note:-

Deduction provisions as per US taxation laws

a) professional society dues considered as internal revenue services and can be allowed as deduction for the business.

With which we can understand

If self employed#fully deductable

If employee of firm#no deduction but can be allowed for deduction only if employer not reimburse the same

b) tax and accounting journals should be considered as advertising expenses for the business and allowed as deduction for business.

From the above provision it is clear

If self employed#fully deductable

If employee of the firm# does not allowed as deduction.

Thank you

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