Bruce Is Employed as an Executive and His Wife, Marie

question 13

Multiple Choice

Bruce is employed as an executive and his wife, Marie, is a self-employed realtor. Besides Bruce's salary, Bruce and Marie own a warehouse that they rent to a local business for storage. This year they paid $1,250 for electric service in the warehouse. Marie also paid self-employment tax of $6,200 and Bruce had $7,000 of Social Security taxes withheld from his pay. Marie paid $45 fee to rent a safe deposit box to store records associated with her realty operation. Which of the following is a True statement?

• A) One-half of the social security tax is deductible for AGI.
• B) Only the electric bill is deductible for AGI.
• C) The self-employment tax is not deductible.
• D) The safe deposit fee and the electric bill are deductible for AGI.
• E) None of the choices are correct.

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Definitions:

Skeptical

Being skeptical involves doubting or questioning the validity or authenticity of something.

Well-defined

Clearly described or outlined, with no ambiguity or confusion about the nature or limits of something.

Starting Information

The initial data or clues available to solve a problem or undertake a task, crucial for determining the direction and methods for reaching a solution or goal.

Goal

An idea of a future or desired result that a person or a group of people envision, plan, and commit to achieve.