CHAPTER SIXMISCELLANEOO 90 Which one of the following statem

CHAPTER SIX--MISCELLANEOO 90. Which one of the following statements is correct in regard to unreimbursed employer business expenses? search expenses in your present occupation are deductible. cal examinations required by your employer are deductible. a. Job c. d. Both of the above are deductible. None of the above deductible. 91. Which one of the following statements is correct in regard to deductible dues? a. Dues paid to a business league are deductible. b. Dues paid to a luncheon club are deductible. c. Dues paid to airline clubs are deductible. d. Dues paid to hotel clubs are deductible. 92. Which one of the following statements is correct in regard to deductible education expenses? a. They are deductible if they are needed to meet the minimum educational requirements to qualify you in your present work or b. They are deductible if they will lead to qualifying you in a new trade c. The expenses are nondeductible if the education serves a business d. Education expenses are deductible if the education maintains or business. or business. purpose of your employer. improves skills in your present job. 93. Which one of the following statements is correct in regard to deducting expenses a. You can deduct expenses incurred while looking for a job in a new b. You are allowed to deduct expenses incurred in searching for a new c. You can deduct expenses incurred while looking for a job for the first d. You can deduct expenses paid to an employment agency looking for for job searching? occupation job after a substantial break from the end of your last job. time. a new job in your present occupation. 20

Solution

90. Correct Statement is c:

c. Both of the above are deductable.

Job search expenses in your present occupation are deductible .If you travel to look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area to which you travelled.

Medical Examinations may be deducted if not reimbursed by the employer.

91. Correct Statement is a:

a. Dues paid to a Business League are deductable.

You cannot deduct dues paid to airline clubs, hotel clubs, and clubs operated to provide meals under circumstances generally considered to be luncheon clubs.

92. Correct Statement is d:

d. Education expenses are deductible if the education maintains or improves skills in your present job.

To be deductible your expenses must be for education that:

93. Correct Statement is d:

d. You can deduct expenses paid to an employment agency looking for a new job in your present occupation.

Fees paid to employment and outplacement agencies are deductible. However, if your employer reimburses you for these fees in a later year, you must include the amount in your gross income up to the amount of your tax benefit in the earlier year.