One of the Tax Advantages of Being Self-Employed (Rather Than

question 45

Multiple Choice

One of the tax advantages of being self-employed (rather than being an employee) is:

• A)The self-employment tax is lower than the Social Security tax.
• B)The cutback adjustment does not apply.
• C)Job-related expenses are deductions for AGI.
• D)The actual cost method for deducting the business use of an automobile can be selected.
• E)A deduction for an office in the home is available.

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Definitions:

Independent Events

Events wherein the happening of one does not alter the chance of occurrence of the others.

Smart

Having or showing a quick-witted intelligence or being able to adapt and change responsive to the environment.

Funny

Causing laughter or amusement; humorous.

Gender

A range of characteristics pertaining to, and differentiating between, masculinity and femininity, often influenced by social and cultural factors.