Which of the Following Expenses, If Any, Qualify as Deductible

question 35

Multiple Choice

Which of the following expenses, if any, qualify as deductible in 2018?

• A) Contribution to a Roth IRA.
• B) Costs involved in maintaining an office in the home by a self-employed insurance adjuster. Taxpayer's wife also uses the office as a meeting place for her bridge club.
• C) Cost of moving to first job location. Taxpayer just graduated from college.
• D) Job hunting expenses of a fishing guide to become an insurance salesman.
• E) None of the above.

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Definitions:

Maturity Value

The amount of money an investment will produce at the end of its holding period, including the principal and interest or dividends.

Price Volatility

The degree to which the price of an asset, security, or market index moves up or down over time.

Coupon Bond

A bond that pays the holder a fixed interest payment (coupon) at regular intervals until maturity, when the principal amount is repaid.

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and is to be paid.