AFSP EXAM QUESTIONS AND ANSWERS
100% PASS
Standard mileage rate enables a taxpayer to - ANS deduct vehicle expenses on per mile rate
basis rather than deducting actual car expenses.
Accordingly, the standard mileage rates differ from one another depending on whether the
vehicle is
used for: - ANS Business purposes;
Charitable purposes; or
Obtaining medical care.
Can taxpayer deduct unreimbursed employee expenses? - ANS no
the 2018 alternative
standard mileage rate applicable to eligible business use of a vehicle is - ANS 54.5¢ per mile,
up from 53.5¢
in 2017.
(Business Use of a Taxpayer's Personal Vehicle)
In order for such expenses to be deductible, they must have been: - ANS Paid or incurred
during the tax year;
For the purpose of carrying on the taxpayer's trade or business; and
Ordinary and necessary.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Provided the vehicle expenses meeting the three criteria are not reimbursed, the deductible
personal vehicle expenses include those incurred while traveling: - ANS Between workplaces;
To meet with a business customer;
To attend a business meeting located away from the taxpayer's regular workplace; or
From the taxpayer's home to a temporary place of work.
In addition to using the standard mileage rate, a taxpayer may also deduct any -
ANS business-related
parking fees and tolls paid while engaging in deductible business travel.
parking fees paid by
a taxpayer to park his or her vehicle at the usual place of business are considered -
ANS commuting
expenses and are not deductible.
The standard mileage rate applicable to a taxpayer's
use of a personal vehicle for charitable purposes is based on statute and remains unchanged at -
ANS 14¢
per mile
use of Personal Vehicle for Charitable Purposes, The taxpayer may also deduct - ANS parking
fees and tolls regardless of whether the actual
expenses or standard mileage rate is used.
The vehicle expenses a taxpayer may include as
medical and dental expenses are - ANS the amounts paid for transportation to obtain medical
care for the
taxpayer, a spouse or a dependent.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, A taxpayer may also include as medical and dental expenses
those transportation costs incurred:
and
The taxpayer may also deduct - ANS By a parent who must accompany a child needing
medical care;
By a nurse or other person who can administer injections, medications or other treatment
required by a patient traveling to obtain medical care and unable to travel alone; or
For regular visits to see a mentally-ill dependent, if such visits are recommended as a part of
the mentally-ill dependent's treatment.
and
any parking fees or tolls,
regardless of whether actual expense or the standard mileage rate is used.
For 2018, the standard medical mileage rate is - ANS 18¢
per mile, an increase of 1¢ from 2017.
Under the
federal education savings bond program, a taxpayer may exclude some or all interest income
received
on qualified U.S. savings bonds if the taxpayer: - ANS Paid qualified education expenses for
the taxpayer, a spouse or a dependent claimed as an
exemption;
Has a modified adjusted gross income (MAGI) not exceeding specified maximum amounts that
are adjusted for inflation each year; and
Has a federal income tax filing status other than married filing separately.
The U.S. savings bonds that qualify for the education savings program are - ANS series EE
bonds issued
after 1989 and series I bonds.
The bonds must be issued either in the taxpayer's name as sole owner
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
100% PASS
Standard mileage rate enables a taxpayer to - ANS deduct vehicle expenses on per mile rate
basis rather than deducting actual car expenses.
Accordingly, the standard mileage rates differ from one another depending on whether the
vehicle is
used for: - ANS Business purposes;
Charitable purposes; or
Obtaining medical care.
Can taxpayer deduct unreimbursed employee expenses? - ANS no
the 2018 alternative
standard mileage rate applicable to eligible business use of a vehicle is - ANS 54.5¢ per mile,
up from 53.5¢
in 2017.
(Business Use of a Taxpayer's Personal Vehicle)
In order for such expenses to be deductible, they must have been: - ANS Paid or incurred
during the tax year;
For the purpose of carrying on the taxpayer's trade or business; and
Ordinary and necessary.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Provided the vehicle expenses meeting the three criteria are not reimbursed, the deductible
personal vehicle expenses include those incurred while traveling: - ANS Between workplaces;
To meet with a business customer;
To attend a business meeting located away from the taxpayer's regular workplace; or
From the taxpayer's home to a temporary place of work.
In addition to using the standard mileage rate, a taxpayer may also deduct any -
ANS business-related
parking fees and tolls paid while engaging in deductible business travel.
parking fees paid by
a taxpayer to park his or her vehicle at the usual place of business are considered -
ANS commuting
expenses and are not deductible.
The standard mileage rate applicable to a taxpayer's
use of a personal vehicle for charitable purposes is based on statute and remains unchanged at -
ANS 14¢
per mile
use of Personal Vehicle for Charitable Purposes, The taxpayer may also deduct - ANS parking
fees and tolls regardless of whether the actual
expenses or standard mileage rate is used.
The vehicle expenses a taxpayer may include as
medical and dental expenses are - ANS the amounts paid for transportation to obtain medical
care for the
taxpayer, a spouse or a dependent.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, A taxpayer may also include as medical and dental expenses
those transportation costs incurred:
and
The taxpayer may also deduct - ANS By a parent who must accompany a child needing
medical care;
By a nurse or other person who can administer injections, medications or other treatment
required by a patient traveling to obtain medical care and unable to travel alone; or
For regular visits to see a mentally-ill dependent, if such visits are recommended as a part of
the mentally-ill dependent's treatment.
and
any parking fees or tolls,
regardless of whether actual expense or the standard mileage rate is used.
For 2018, the standard medical mileage rate is - ANS 18¢
per mile, an increase of 1¢ from 2017.
Under the
federal education savings bond program, a taxpayer may exclude some or all interest income
received
on qualified U.S. savings bonds if the taxpayer: - ANS Paid qualified education expenses for
the taxpayer, a spouse or a dependent claimed as an
exemption;
Has a modified adjusted gross income (MAGI) not exceeding specified maximum amounts that
are adjusted for inflation each year; and
Has a federal income tax filing status other than married filing separately.
The U.S. savings bonds that qualify for the education savings program are - ANS series EE
bonds issued
after 1989 and series I bonds.
The bonds must be issued either in the taxpayer's name as sole owner
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
