Which of the Following Costs Are Deductible on Form 1040,Schedule

question 81

Multiple Choice

Which of the following costs are deductible on Form 1040,Schedule A,as taxes? 1.Real estate taxes on property owned in Mexico.
2) Property tax portion of vehicle registration,based on the value of the auto.
3) Fine for speeding.
4) Personal property tax on a pleasure boat.

• A)1,2,and 4.
• B)3 and 4.
• C)None of the items are deductible.
• D)All of the items are deductible.

---

Definitions:

Reporting Entity

A business or organization that is required to prepare financial statements.

Operating Activity

Activities that constitute the primary or main activities of an entity, including cash flows related to sales, expenses, and other core business operations.

Cash Dividend

A direct payment of profits from a corporation to its shareholders, often distributed quarterly.

Equity-Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, by recording such profits as income.