41) In-home office expenses which are not deductible in the year in which the costs were incurred due to limitations may be carried forward to subsequent years.
42) An employer receives an immediate tax deduction for pension and profit-sharing contributions made on behalf of employees.
43) In a defined contribution pension plan, fixed amounts are contributed based upon a specific formula and retirement benefits are based on the value of a participant's account at the time of retirement.
44) A qualified pension plan requires that employer-provided benefits must be 100 percent vested after five years of service.
45) Under a qualified pension plan, the employer's deduction is usually deferred until the employee recognizes income.
46) Nonqualified deferred compensation plans can discriminate in favor of highly compensated executives.
47) Corporations issuing incentive stock options receive a tax deduction for compensation expense.
48) Employees receiving nonqualified stock options recognize ordinary income at the grant date or exercise date if there is a readily ascertainable fair market value.
49) A sole proprietor establishes a Keogh plan. The highest effective percentage of earned income she can contribute is 25 percent.
50) The maximum tax deductible contribution to a traditional IRA in 2013 is $5,500 ($6,500 for a taxpayer age 50 or over).