Question
Ben is employed as a carpenter and his wife, Marilyn is a self-employed consultant. Besides Ben’s salary, Ben and Marilyn own a condominium that they only rent to tourists. This year they paid $2,200 for utilities in the condo. Marilyn also paid self-employment tax of $4,200 and Ben had $3,000 of Social Security taxes withheld from his pay. Which of the following is a true statement?
A Only the $2,200 utility bill is deductible for AGI.
B One-half of Ben’s social security tax is deductible for AGI.
C The cost of the utilities is deductible for AGI.
D None of the choices are true.
E None of Marilyn’s self-employment tax is deductible
This question is taken from Accounting 150 – Principles of Income Taxation » Fall 2021 » Chapter 6 Quiz
