Joe Is a Self-Employed Electrician Who Operates His Business on the Accrual

question 23

Multiple Choice

Joe is a self-employed electrician who operates his business on the accrual method. This year Joe purchased a shop for his business, and for the first time at year-end he received a bill for $4,500 of property taxes on his shop. Joe didn't pay the taxes until after year-end but prior to filing his tax return. Which of the following is a True statement?

• A) If he elects to treat the taxes as a recurring item, Joe can accrue and deduct $4,500 of taxes on the shop this year.
• B) The taxes are a payment liability.
• C) The taxes would not be deductible if Joe's business was on the cash method.
• D) Unless Joe makes an election, the taxes are not deductible this year.
• E) All of the choices are True.

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Definitions:

Adaptive Functioning

The ability to effectively manage and cope with daily life demands and challenges, reflecting practical, social, and conceptual skills.

Attention-Deficit/Hyperactivity Disorder

A neurodevelopmental disorder characterized by patterns of inattention, hyperactivity, and impulsivity that are pervasive and impair daily functioning.

Autism Spectrum Disorder

A developmental disorder characterized by deficits in social interaction, by impaired communication, and by restricted, repetitive behavior and interests.

Social Cues

Non-verbal or verbal hints that guide social interactions, such as facial expressions, body language, and vocal tones.