Herbert is the sole proprietor of a furniture store. He can deduct real property taxes on his store building as a business deduction but he cannot deduct state income taxes related to his net income from the furniture store as a business deduction
a. True
b. False
Indicate whether the statement is true or false
True
RATIONALE: Herbert may deduct the real property taxes on the store building as a business expense. However, the position of the IRS is that state and local income taxes imposed upon an individual are deductible only as itemized deductions, even if the taxpayer's sole source of income is from a business, rents, or royalties.
You might also like to view...
Savings-and-loan associations suffered losses in the late 1970s when
A. the farm sector of the economy became unprofitable, forcing many farmers into bankruptcy, leading to many bad farm loans. B. inflation rose, causing short-term interest rates to rise. C. oil prices rose sharply, causing S&Ls to lose money invested in the oil sector. D. short-term interest rates fell, causing S&Ls to suffer capital losses on their portfolios of short-term securities.
What are the different ways in which the major cultural values of a society are expressed?
What will be an ideal response?
A decertification election is held when an employer does not want the presence of multiple unions in the organization
Indicate whether the statement is true or false
Which of the following is not a method used to determine transfer prices?
A. The balanced scorecard method B. Negotiation C. The cost-based method D. The market-price method