Indicate the Proper Treatment in the Current Year for the Underlined

question 75

Multiple Choice

Indicate the proper treatment in the current year for the underlined amounts. Treat each item as an independent event. Indicate whether the amount is deductible or not; if deductible whether it is deductible FOR or FROM AGI; and indicate the amount of the deduction for the current year considering any relevant limitations. Assume the taxpayer has deductions greater than the standard deduction, has AGI of $69,000 without regard to the following transactions and has no "total" income limitations related to itemized deductions.
-Self-employed sports agent pays $6,000 of self-employment tax. Amount: $3,000

• A)Not Deductible
• B)Deductible - For AGI
• C)Deductible - From AGI

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Definitions:

Code of Conduct

A Code of Conduct is a set of rules outlining the norms, rules, and responsibilities or proper practices for an individual, party or organization.

Magnitude of Consequences

The scale or significance of the outcomes that result from a decision or action.

Ethical Issue

A situation or problem that requires individuals or organizations to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

Accruing Benefits

Refers to the gradual accumulation of advantages or positive outcomes over time as a result of certain actions or investments.