A Worker May Prefer to Be Treated as an Independent

question 150

Multiple Choice

A worker may prefer to be treated as an independent contractor (rather than an employee) for which of the following reasons:

• A)Avoids the cutback adjustment as to business meals.
• B)All of the self-employment tax is deductible for income tax purposes.
• C)Work-related expenses are not subject to the 2%-of-AGI floor.
• D)A Schedule C does not have to be filed.
• E)None of the above.

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Definitions:

Exclusive Ownership

The right to use, manage, and dispose of property without interference from others, ensuring complete control over the asset.

Joint Tenancy

A form of co-ownership where parties own property equally with rights of survivorship, meaning if one owner dies, the other automatically inherits the deceased owner's share.

Easement

A right to cross or otherwise use someone else's land for a specified purpose.

Leasehold

A possessory interest, but not an ownership interest, transferred by contract (lease).