course hero tax which of the following is deductible expense for a corporatio

Which is a deductible business expense *?

The Rule for an Expense to Be Deductible Primarily for the business (not personal). In other words, money you spend in a reasonable way, with an expectation of bringing in business revenue, is a deductible expense.Jul 6, 2020

Which of the following is a deductible expenses for income tax purposes?

Contributions to a health savings account, up to annual limits. Medical and dental expenses exceeding 7.5% of your adjusted gross income. Self-employment expenses, including the home office deduction and health insurance premiums deduction. Charitable contributions.

Which is a deductible expense against business gross income *?

Allowable deductions from gross income relates to business expenses – those expenses which are ordinary and necessary for the conduct of trade or business or profession. Expenses which are personal to the business owners or entrepreneurs and does not contribute to earning the income are not allowed deductions.

Which of the following is not a deductible expense?

1- Typically non-deductible expenses: Penalties & Fines. Political Contributions. Burial, funeral, and cemetery expenses. Legal fees and expenses.May 15, 2020

Which is a deductible expense quizlet?

Expenses incurred in connection with conducting a trade or business activity or in connection with production of income are generally deductible, but personal expenses are generally not deductible. A deduction will be allowed for an expenditure unless the Internal Revenue Code specifically disallows it.

Which is a deductible expense against business gross income quizlet?

Cost of sales or cost of services and regular allowable itemized deductions are fully deductible against gross income. 2. Special incentive deductions are deductible only to the extent of net income before special incentive deductions.

What are deductible from gross income?

An itemized deduction is an expense subtracted from adjusted gross income (AGI), which reduces taxable income and, therefore, the amount of taxes owed. Common itemized deductions include interest on a mortgage loan, unreimbursed healthcare costs, charitable contributions, and state and local taxes.

Which of the following Cannot claim deduction from gross income?

Home mortgage interest, medical expenses, contributions, and other personal expenses cannot be claimed as deductions for income tax purposes. However, social security contributions, up to the prescribed amount of maximum mandatory contributions, are excluded from gross income.Jan 14, 2022