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.

---

Definitions:

Production Technology

The methods, equipment, and processes used to produce goods and services, encompassing both physical machinery and software systems.

Efficient Outcomes

Results or end-states that achieve the maximum benefit or utility with the minimal waste of resources.

Economy

The system of production, distribution, and consumption of goods and services in a particular geographic area.

Unemployment

The condition of being without a job, while actively searching for employment.