Question

145. Alicia’s home is used as a daycare Monday through Friday for 12 hours per day for 250 days during the year. It is also used on 50 Saturdays for 8 hours per day. What is the total number of hours that the house was used for daycare during the year that Alicia can include on Form 8829 - Expenses for Business Use of Your Home?

a)0 hours

b)1,700 hours

c)3,000 hours

d)3,400 hours

146. Mona is self-employed working as a fortune teller. Her net income from this activity was $250 in tax year 2016. Which of the following is true regarding her self-employment (SE) tax for the year?

a)She has SE tax because she was self-employed

b)She has SE tax because net income was earned

c)She has no SE tax because net income was less than $400

d)She has no SE tax because net income was less than $1,000

180. An exclusion is provided for premiums paid by an employer for "group-term" life insurance, up to what amount for each employee?

a)$25,000

b)$30,000

c)$40,000

d)$50,000

Answer 1

145. d

250*12= 3000

50*8=400

total comes out to be 3400 hourrs

146. c

You must pay self-employment tax and file Schedule SE (Form 1040) if either of the following applies.

• Your net earnings from self-employment (excluding church employee income) were $400 or more.
• You had church employee income of $108.28 or more.

147. d

An employer typically offers group term life insurance coverage at no cost to the employee up to $50,000, but the base amount varies by company. If the employee chooses to add supplemental coverage, he can do so up to certain limits, such as $500,000 or five times his annual salary. For dependent or spousal supplemental coverage, group term life insurance coverage is often capped at $100,000 per additional insured.