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

question 163

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)The actual cost method for deducting the business use of an automobile can be selected.
• D)Job-related expenses are deductions for AGI.
• E)A deduction for an office in the home is available.

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Definitions:

Wireless Network

A networking setup that allows devices to connect and communicate with each other without the need for physical cables, using radio waves or infrared signals.

Printer

A peripheral device that reproduces text and images from a computer onto paper or other physical mediums.

Node

A point in a network where pathways intersect or branch, also used to refer to devices like computers or other endpoints on a network.

Data Packets

Small blocks of data transmitted over a network, each containing both payload (the actual data) and control information.