Joe Is a Self Employed Electrician Who Operates His Business

question 41

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 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. 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 these are true.

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Definitions:

Schizophrenia

A severe psychological condition marked by alterations in cognition, feeling, speech, self-identity, and actions.

Hyperactivity

Excessive movement, impulsive actions, and difficulty with maintaining attention, often associated with ADHD.

Depression

A psychological condition marked by an ongoing low mood or a lack of enthusiasm for activities, which greatly disrupts everyday functioning.

Mania

A mental health condition characterized by periods of extremely elevated mood, energy, and unusual or erratic behaviors.