Tax Preparation Self-Employment and Business Taxes 2

Question 1

Which method allows a self-employed taxpayer to calculate the home office deduction using $5 per square foot?

Accepted Answer

Simplified method

Answer

Actual expense method

Answer

Straight-line method

Answer

Percentage-of-home method

Question 2

Business meals are generally deductible at what percentage for self-employed taxpayers?

Accepted Answer

50%

Answer

100%

Answer

80%

Answer

25%

Question 3

A self-employed individual buys a $20,000 vehicle used 60% for business. What is the maximum first-year depreciation deduction using Section 179?

Accepted Answer

$12,000

Answer

$20,000

Answer

$10,000

Answer

$6,000

Question 4

Quarterly estimated tax payments are due on which dates?

Accepted Answer

Apr 15, Jun 15, Sep 15, Jan 15

Answer

Jan 15, Apr 15, Jul 15, Oct 15

Answer

Mar 15, Jun 15, Sep 15, Dec 15

Answer

Apr 15, Jul 15, Oct 15, Jan 15

Question 5

A taxpayer can avoid the underpayment penalty by paying at least what percentage of the prior year's tax?

Accepted Answer

100% of prior year tax (or 110% if income over $150,000)

Answer

90% of current year tax

Answer

85% of estimated current year tax

Answer

95% of current year tax

Question 6

A sole proprietor reports income and expenses on which form?

Accepted Answer

Schedule C

Answer

Form 1120-S

Answer

Schedule E

Answer

Form 1065