Under the Actual Expense Method, Which, If Any, of the Following

question 142

Multiple Choice

Under the actual expense method, which, if any, of the following expenses will not be allowed?

• A) Parking fines incurred during business use of a car.
• B) Interest expense on a car loan (taxpayer is self-employed).
• C) Auto insurance.
• D) Auto club dues.
• E) None of the above.

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Definitions:

Gratuitous Promise

A promise for which no consideration is given; not legally binding unless put in a deed or supported by some form of consideration.

Electronic Contracts

Legal agreements formed, signed, or accepted electronically, without the use of paper or wet ink.

Unreasonable Terms

Contract terms that are deemed excessively unfair or one-sided in favor of one party, potentially leading to legal challenges.

Standard Form Contract

A pre-prepared contract where most terms are set in advance with little opportunity for negotiation by the signatory.