1. Which of the following is not a "trade or business" expense?
Mortgage interest on a warehouse.
Depreciation on business equipment.
Mortgage interest on a personal residence.
Cost of goods sold.
2. Cole purchased a car for business and personal use. In 2014, he used the car 60% for business (13,000 total use miles) and used the standard mileage rate to calculate his vehicle expenses. He also paid $1,500 in interest and $360 in county property tax on the car. What is the total business deduction related to business use of the car rounded to the nearest dollar?
$1,860.
$4,368.
$5,484.
$6,228.
3. Samson purchased some equipment for $86,749 on March 15, 2013. He decided he did not need the equipment and sold it on March 10, 2014 for $82,000. The equipment was subject to depreciation of $16,851 for 2013 and 2014. What gain or loss will Samson recognize on the sale of the equipment?
$4,749 capital loss.
$4,749 ordinary loss.
$12,102 capital gain.
$12,102 ordinary gain.