Which of the Following Items, If Any, Is Deductible

question 36

Multiple Choice

Which of the following items, if any, is deductible?

• A)Parking expenses incurred in connection with jury duty-taxpayer is a dentist.
• B)Substantiated gambling losses (not in excess of gambling winnings) from state lottery.
• C)Contributions to mayor's reelection campaign.
• D)Speeding ticket incurred while on business.
• E)Premiums paid on personal life insurance policy.

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Definitions:

Interest Rates

The amount of a loan that is incurred as interest by the borrower, customarily specified as an annual percentage of the loan in question's remaining value.

Invest

Diverting money with the hopes of producing an income or realizing a profit.

Crowding Out

The phenomenon where increased government spending leads to a reduction in private sector investment or spending due to higher interest rates or other factors.

Budget Deficit

A budget deficit occurs when a government's expenditures exceed its revenues during a specific period, leading to the need for borrowing or using saved reserves.