Question

____ 7. Which statement concerning deductible transportation costs is true?

            a.         B is self-employed, with no home office.  Today, he drives 20 miles to his office, then later in the day drives to meet a client at the client's office. By the time he gets home that night he has driven 63 miles. He can deduct the cost of driving 23 miles.

            b.         F, a self-employed architect without a home office, usually drives 40 miles round-trip from home to office. Today, she skips the office and drives directly to a job site to inspect the construction. Her round trip is 50 miles. She may deduct the cost of 50 miles.

            c.         M, a self-employed contractor, works out of her home. She may deduct the cost of driving to a client's place of business.

            d.         ‘a’, ‘b’ and ‘c’ are all false.

            e.         ‘a’, ‘b’ and ‘c’ are all true.

____ 8.  R coaches the basketball team at Houston High School. In preparation for the state playoffs he decided to scout his probable opponent, which was playing in San Antonio. On Friday afternoon, he left from school and drove to San Antonio to watch the game. Later that night he returned to school to work on plans for the upcoming game. He incurred the following costs: transportation, $25; meals, $5. The costs were reimbursed by his employer under an accountable plan and included in his taxable wages. The coach may deduct (FOR AGI):

            a.         $20.

            b.         $27.50.

            c.         $25.

            d.         $29.

            e.         $30.

Answer 1