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:

Radical

An expression that includes a square root, cube root, or any higher root.

Square Root

The value that, when multiplied by itself, gives the original number; it's represented by the radical symbol √.

Evaluate

To find out the value associated with an expression.

Round

To approximate a numerical value to a specified degree of accuracy, often to the nearest whole number or decimal place.