Margaret Is Single and Is a Self-Employed Proprietor of a Convenience

question 78

Multiple Choice

Margaret is single and is a self-employed proprietor of a convenience store near the mall. During the current year, Margaret paid $4,000 for health insurance coverage for herself. She paid another $500 for coverage for her unrelated employee, Corky. How should Margaret deduct the health insurance cost?
I.Margaret takes $500 as a business expense.
II.Margaret takes the $4,000 as a deduction for AGI.​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

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A major mountain range in western North America, extending from Canada through the United States.