Learning Objective:
The learning objective of this course is to review the tax treatment of employees' pay and fringe benefits, rent, interest, taxes, insurance, bad debts, and amortization.
Prerequisite: None
Course level: Overview
Advanced preparation: None
Teaching method: Online study
Recommended hours: 12
Summary of Contents:
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Deducting business expenses
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Employees' pay
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Retirement plans
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Rent expenses Interest, taxes and insurance
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Capitalized costs
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Amortization and depletion
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Business bad debts
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Fringe benefit rules
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Awards, education, employee stock
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Commuting and lease value rules
Sample Exam Questions:
8. MiniMee Company claims the welfare-to-work credit on their tax return, since they hire individuals who meet the requirements. MiniMee is not required to reduce their deduction for employee wages by the amount of the welfare-to-work credit.
A. True
B. False
9. In order to determine the reasonableness of pay, and to meet the reasonableness test for salaries, you base the test on:
A. The total salaries paid to all officers or all employees
B. The percentage of salaries to total business expenses
C. Each individual's salary and the service performed
D. None of the above
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