Under the Deemed Substantiation Method of Accounting for Expenses, What

question 54

Multiple Choice

Under the deemed substantiation method of accounting for expenses, what is the maximum amount taxpayers are allowed as a deduction without being required to substantiate the amount of the expenses?

• A)The appropriate Federal per diem amount.
• B)$75 per day.
• C)All expenses up to $25 per day.
• D)The per diem rate established by the state in which they live.
• E)None of these.

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Definitions:

Health Care Insurance

An insurance policy that covers the cost of medical and surgical treatments for the policyholder.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level, type of earnings, and other factors.

Tax Base

The Tax Base is the total amount of assets, income, or other taxable items upon which a government levies taxes.

Tax Liability

The total amount of tax owed by an individual or a corporate entity to tax authorities.