111 Chapter 3 Crossword

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Across
  1. 2. Taxpayers with net earnings of ____-hundred or more must pay a self-employment tax
  2. 4. ______, penalties, and other payments to governments related to the violation of law are generally not deductible on Sch C
  3. 5. A home office used by the self-employed taxpayer as the ___ place of business may provide a tax deduction
  4. 7. Under ____ loss provisions, taxpayers may not show a loss from an activity that is not engaged in for profit.
  5. 10. Taxpayers get a deduction ___ (Hint: For or From?) adjusted gross income equal to half of the self-employment tax.
  6. 11. Taxpayers may choose to deduct ____ expenses of transportation.
  7. 12. Expenditures related to _______ (Hint: 2 words)income are generally not deductible on Sch C
  8. 13. For an expense to be generally considered deductible, it must be reasonable, in light of the ___ that are generated as a result of the expense
  9. 15. The home office deduction cannot be used to create a net ____ for the business, except if the loss is due to the allocable portion of mortgage interest and property taxes (which are generally tax deductible as an itemized deduction anyway).
  10. 17. This common business expense is only 50% deductible for most types
  11. 18. For an expense to be generally considered deductible for a trade or business, it must have a legitimate business _____
  12. 21. For an expense to be generally considered deductible for a trade or business, it must be ______ and necessary.
  13. 22. _____ is the stock of goods a material holds in order to sell and make a profit.
  14. 23. Travel expenses are not deductible if they are ____ or extravagant.
Down
  1. 1. Travel expenses must be ___ to be deductible (Hint: it means you must have 'proof')
  2. 3. Illegal bribes and ______ are generally not deductible as business expenses
  3. 6. _____ and maintenance are included as costs built into the standard mileage rate.
  4. 8. The simplified home office deduction allows the taxpayer to take ____ dollars per square foot as a home office deduction, with a maximum of $1,500
  5. 9. ______ is generally not deductible as a transportation expense on Schedule C.
  6. 14. Special clothing and uniforms are deductible for self-employed individuals and employers if not suitable for ____ use and required for employment
  7. 16. Taxpayers may use the ____ mileage rate to calculate deduction of transportation expenses.
  8. 18. If a taxpayer takes primarily a _____ trip (within or outside the United States), travel costs to and from the destination are not deductible.
  9. 19. A “trade” or “business” is not formally defined in the Internal Revenue Code (the Code) but is generally any activity engaged in for ______.
  10. 20. This type of business expense is usually not deductible