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