All of the Following Statements Regarding Tax Treatment of Education

question 69

Multiple Choice

All of the following statements regarding tax treatment of education expenses are true except

• A)Fred,who recently graduated law school,is working in a law firm.The firm requires that he pass the bar exam by a certain date,or he will lose his job.Fred can deduct his cost for the bar exam review course as a miscellaneous itemized deduction (subject to the 2% nondeductible floor).
• B)Sophie is a partner in a CPA firm.She pays out of her own funds to attend an update course on estate and gift tax planning.Sophie can deduct the cost of the course for AGI.
• C)Javier is an associate in a CPA firm.He pays out of his own funds to attend an update course on new FASB standards.Javier can deduct his cost for the course as a miscellaneous itemized deduction (subject to the 2% nondeductible floor).
• D)Iris is an associate in a law firm.She attends an update course on contract drafting,and she is reimbursed by the law firm.There is no effect on Iris' tax return.

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Definitions:

Efferent Arteriole

A small blood vessel that carries blood away from the glomerulus of the kidney to the peritubular capillaries, playing a key role in regulating blood pressure and filtration rate in the kidney.

Renal Vein

A vein that carries purified blood away from the kidneys back to the heart.

Nucleic Acid Metabolism

The set of biochemical processes responsible for the synthesis, degradation, and regulation of nucleic acids (DNA and RNA) in living organisms.

Gout

Condition caused by the inability of the urinary system to remove uric acid from the body.