Janey Makes Frequent Small Purchases and Pays Off the Total

question 104

Multiple Choice

Janey makes frequent small purchases and pays off the total outstanding balance on her credit card every month. Which of the following features is most attractive to her when searching for a credit card provider?

• A) A low required minimum payment percentage
• B) A high interest rate
• C) A high over-the-limit fee
• D) No grace period
• E) No annual fee

---

Definitions:

More-Than-50% Business-Use Test

A criterion used for determining whether an asset is used primarily for business, requiring that over 50% of its use is for business to qualify for certain tax deductions.

Listed Property

Assets specified by the IRS that are subject to specific record-keeping and substantiation requirements, such as vehicles and computers used for business.

Business Bad Debt

Debt associated with the conduct of a trade or business that becomes worthless or uncollectible during the tax year.

Short-Term Capital Loss

A loss realized on the sale or exchange of a capital asset held for one year or less.