Question

1.Taxpayer files her 2018 Form 1040 on March 1, 2019. The tax return shows a balance due of $500. The balance is not paid until July 1, 2019. The Federal tax statute of limitations for this return expires on:
a) March 1, 2022.
b) April 15, 2022.
c) July 1, 2022.
d) April 15, 2025.
e) None of the above.

2.Corey is the city sales manager for “RIBS,” a national fast food franchise. Every working day, Corey drives his car as follows:
Miles
Home to office 20
Office to RIBS No. 1 20
RIBS No. 1 to No. 2 20
RIBS No. 2 to No. 3 10
RIBS No. 3 to home 30
How much of Corey’s travel may be deductible?
a) 0 miles.
b) 50 miles.
c) 66 miles.
d) 76 miles.
e) None of these

Answer 1

The answer for 1st question is option - C) July 1, 2022

The fereral tax statue of limitations have a three year validity. If in certain cases extension is given to taxpayer like in this case, it is given upto 1 july 2019, then you three years starts from then.

The answer for 2nd question is option - B) 50 miles

Corey's travel deduction = 20 +10 +20

= 50 miles

Travelling from work to office and office to home is considered as personal expense. Hence these both are non deductible.

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