AFSP Exam with Questions and
Correct Answers Graded A+
standard mileage rate enables a taxpayer to correct answer: 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: correct answer: Business purposes;
Charitable purposes; or
Obtaining medical care.
Can taxpayer deduct unreimbursed employee expenses? correct answer: no
the 2018 alternative standard mileage rate applicable to eligible business use of a vehicle is
correct answer: 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: correct answer: Paid or
incurred during the tax year;
For the purpose of carrying on the taxpayer's trade or business; and Ordinary and necessary.
Provided the vehicle expenses meeting the three criteria are not reimbursed, the deductible
personal vehicle expenses include those incurred while traveling: correct answer: 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 correct answer:
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 correct answer: 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 correct answer: 14¢
per mile
use of Personal Vehicle for Charitable Purposes, The taxpayer may also deduct correct answer:
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 correct answer:
the amounts paid for transportation to obtain medical care for the taxpayer, a spouse or a
dependent.
A taxpayer may also include as medical and dental expenses those transportation costs incurred:
and The taxpayer may also deduct correct answer: 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 correct answer: 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: correct answer: 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 correct answer: series
EE bonds issued after 1989 and series I bonds.
The bonds must be issued either in the taxpayer's name as sole owner
or in the name of the taxpayer and spouse as co-owners.
the owning taxpayer must have been at least age 24 before the bond's date of issue.
head of the House of Ways & Means Com. correct answer: Richard Neal (D-MA)
Qualified Improvement Property (QIP) correct answer: any improvement to an interior portion
of a building that is nonresidential real property if such improvement is placed in service after
the date such building was first placed in service.
nonresidential real property correct answer: real estate that is not residential real estate
An excise tax is correct answer: an indirect tax on the sale of a particular good or service such as
fuel, tobacco and alcohol.
Indirect tax means correct answer: the tax is not directly paid by an individual consumer —
instead, the Internal Revenue Service (IRS) levies the tax on the producer or merchant, who
passes it onto the consumer by including it in the product's price.
Correct Answers Graded A+
standard mileage rate enables a taxpayer to correct answer: 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: correct answer: Business purposes;
Charitable purposes; or
Obtaining medical care.
Can taxpayer deduct unreimbursed employee expenses? correct answer: no
the 2018 alternative standard mileage rate applicable to eligible business use of a vehicle is
correct answer: 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: correct answer: Paid or
incurred during the tax year;
For the purpose of carrying on the taxpayer's trade or business; and Ordinary and necessary.
Provided the vehicle expenses meeting the three criteria are not reimbursed, the deductible
personal vehicle expenses include those incurred while traveling: correct answer: 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 correct answer:
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 correct answer: 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 correct answer: 14¢
per mile
use of Personal Vehicle for Charitable Purposes, The taxpayer may also deduct correct answer:
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 correct answer:
the amounts paid for transportation to obtain medical care for the taxpayer, a spouse or a
dependent.
A taxpayer may also include as medical and dental expenses those transportation costs incurred:
and The taxpayer may also deduct correct answer: 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 correct answer: 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: correct answer: 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 correct answer: series
EE bonds issued after 1989 and series I bonds.
The bonds must be issued either in the taxpayer's name as sole owner
or in the name of the taxpayer and spouse as co-owners.
the owning taxpayer must have been at least age 24 before the bond's date of issue.
head of the House of Ways & Means Com. correct answer: Richard Neal (D-MA)
Qualified Improvement Property (QIP) correct answer: any improvement to an interior portion
of a building that is nonresidential real property if such improvement is placed in service after
the date such building was first placed in service.
nonresidential real property correct answer: real estate that is not residential real estate
An excise tax is correct answer: an indirect tax on the sale of a particular good or service such as
fuel, tobacco and alcohol.
Indirect tax means correct answer: the tax is not directly paid by an individual consumer —
instead, the Internal Revenue Service (IRS) levies the tax on the producer or merchant, who
passes it onto the consumer by including it in the product's price.
