Chapter 9: Deductions: Employee and Self-Employed Related Expenses (WIP)

are transportation expenses deductable

yes

are communting expenses dedutable?

no

What is the automatic mileage method

70 cents per mile

plus parking fees and tolls

what is the actual cost method 

actual cost of operating the automobile is used 

Kalia is a business professional. She drove her car 17,800 miles for business purposes and 8,600 miles for personal purposes during the year 2025. For record keeping, she is following the automatic mileage method. How much is the total standard mileage deduction allowed for Kalia for the year 2025?

a. $17,292

b. $17,800

c. $11,926

d. $12,460

e. $26,400

How long does one need to be away from home to deduct travel expenses

over 24 hour period

can you deduct business expenses for a spouse or dependent

only if there is a business reason for them to be there

is travel as a form of education deductable?

NO

• Foreign travel for business and pleasure

−Transportation expenses must be allocated between business and personal unless: (2)

• away from home for 7 days or less

• less than 25 percent of the tax was for personal purposes 

are travel days considered business days

yes

are weekends, legal holidays, and intervening days considered business days

yes

Rafel plans to travel from New York to China for business purposes. He needs help understanding the travel expenses deduction allowed for his trip. He plans to spend two days on vacation and nine days (including two travel days) on business. His airfare will be $2,500. How much travel expense is Rafel allowed to deduct for this trip?

a. $2,500

b. $1,250

c. $2,500

d. $1,875

e. $2,495

in what case can you deduct education expenses

• legal requirement to keep their jobs ex: licence

• maintain or improve existing skills to current job

when is education expenses not deductable

• meet the minimum educational standard for qualification for existing job 

• qualify the taxpaper for a new trade or business

who can deduct a home office

self-employed

the use to the home office must be _________ and _________

exclusive and regular

two methods of home office deduction

regular method

simplified method 

is the regular method (home office) direct or indirect

both

is the regular method (home office) for or from AGI

for

can home office create a loss

NO

What is the simplified method

$5 per square feet

limited being 500 square feet

can you depreciate a home office using the simplified method

no

how are actual expenese of maintaining and operating the home treated

they’re ignored

can office in the home deduction in excess of the net income from the business be carried over to a future year

no

are entertainment or related activies deductable

NO

are membership due for any club deductable

no

how much of food can be deducted

only 50%

Business meal is deductible only if all the following conditions are met (3)

• reasonable 

• present at meal 

• provided to current or potential business customer

−If the taxpayer is in travel status, any meal expenses can be deducted, subject to the _______

50% rule 

what is the limit for deductions on business gifts

$25 per donee per year

what are the expectations for business gifts

less than $4 are not subjected to the $25 limit 

Under OBBBA are misc employee expenses still deductible

NO

educator expense can only be deducted if _____

itemized

what is the hour requirement for educator expenses

900

Mariatu is an elementary school teacher who worked 950 hours during the school year and spent $200 on supplies in January, $600 on supplies in March, and $700 on supplies in both July and August 2025. What is Mariatu’s deduction for educator expenses?

a. A $300 for A G I deduction educator expense

b. A $600 for A G I deduction educator expense

c. A $800 for A G I deduction educator expense

d. A $700 for A G I deduction educator expense

e. A $2,200 for A G I deduction educator expens