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ACC 343, Chapter 6

Across
What is the only expense that a trafficker in illegal drugs may deduct?
Gross income minus above-the-line deductions equals _____ _____ _____.
The first test an expense must pass to be deductible under the accrual method of accounting is the _____ _____ _____.
The second test an expense must pass to be deductible under the accrual method of accounting is the _____ _____ _____.
Under the Tax Cuts and Jobs Act, a passthrough entity may deduct up to _____ percent of qualified business income.
A taxpayer lives near where a major sports event is about to occur. If the taxpayer rents his home for fewer than _____ days for the whole year, the taxpayer may exclude all of the rental income from gross income.
Income and expenses of rental property of an individual are reported on _____ __ of Form 1040.
Section 62 lists the deductions allowed ___ AGI.
To be deductible, compensation must meet the usual criteria and be _____ in amount.
An exception to the economic performance test allows certain _____ _____ to be deducted immediately under the accrual method of accounting.
Down
To be deductible as a business expense, the expense must be _____ _____ _____.
An individual usually deducts the ____ of the standard deduction or the itemized deductions.
Income of a hobby is _____ in gross income.
Business income and expenses of a sole proprietor are reported on _____ __ of Form 1040.
Section 212 allows a deduction for the ____ ___ ____ not related to a trade or business.
Section 267 disallows the recognition of a loss on a sale or exchange between certain _____ _____.
Section 265 generally disallows any deduction for expenses related to _____ _____ _____.
Except for property taxes and mortgage interest, expenses of a hobby are _____ _____.
Section 162 contains the authority for deducting _____ _____.
If an activity shows a profit for any _____ years out of the last five years, it is rebuttably presumed to be a business.
Section 165 is the authority for deducting allowed _____.
Income and expenses of a farm operated by an individual are reported on _____ __ of Form 1040.
The standard deduction is deductible ___ AGI.