Intuit Academy Tax Level 1 Final Exam Newest 2026-
2027 With Complete 300 Questions And Correct
Detailed Answers| Brand New Version!
James and Margaret own a tech business. Their storefront is located in
Times Square, New York City. They employ 150 people. Some of the
staff are contractors. Every year, during Hanukah, they gift their regular
clients next gen prototypes that have a fair market value of $24.00.
Which of the following items can James and Margaret apply for
deductions as a business expense?
Contract employee wages Storefront maintenance cost
Insurance
Gifts to clients
Amara purchases a new vehicle for $24,500. She uses the vehicle 60%
for business and 40% for personal use.
What amount of the vehicle cost is eligible for Depreciation?
$14,700
1|Page
,Which of the following businesses are eligible for QBI deduction?
Sole proprietorship
Partnership-based venture
S corporation
Trust
Stefan regularly works from Los Angeles. Stefan decides to take a
contract job for 8 months in San Francisco.
Which of the following is Stefan's tax home now?
Los Angeles
Which factors limit the QBI component of QBI deduction?
W-2 wages
UBIA of the qualified property
Type of business
2|Page
,Bert runs a software firm. She takes one of her clients to a baseball
game. Bert buys two tickets to the game for $150 each. During the
game, she pays for hot dogs and soda totaling $68.25.
What amount can she claim for deduction?
$34.12
April lives in a rented apartment in SoHo. She operates her baking
business from her home. She has one dedicated room for her business
equipment, stock, and samples.
Based on the information above, which of the following is true?
April can deduct the portion of the rent for her home that she uses for
her baking business. April can deduct the portion of the rent since she
uses her home for storage on a regular basis.
Match
QBI inclusion/Self employment tax
QBI non-inclusion/Wage Income Actual auto expense inclusion/Fuel
and tires Actual auto expense non-inclusion/Toll charges Deductible
business expense/Transportation expense for client meeting Non-
3|Page
, deductible business expense/Lavish buffet lunch at a 5-star hotel
Business income/Royalty from a published book
Richard sells his farm produce to an organic company. Every year he
sends 3 gift baskets worth $80 each to clients. Richard doesn't have an
independent business relationship with the clients he sends gift baskets
to.
What is the total deductible expense Daniel may claim for the gift
baskets?
$75
Miscellaneous income
any income from your trade or business besides regular employee
wages. This income in your career or business is generally from your
customers or other entities. These transactions will likely be reported to
you and the IRS if they total more than specific amounts during the tax
year.
Miscellaneous income is reported on the IRS tax Form 1099-MISC(opens
in a new tab) in the case of payments for rent, royalties, prizes and
awards, substitute payments instead of dividends, and other items or
Form 1099-NEC(opens in a new tab) if the payments represent
4|Page
2027 With Complete 300 Questions And Correct
Detailed Answers| Brand New Version!
James and Margaret own a tech business. Their storefront is located in
Times Square, New York City. They employ 150 people. Some of the
staff are contractors. Every year, during Hanukah, they gift their regular
clients next gen prototypes that have a fair market value of $24.00.
Which of the following items can James and Margaret apply for
deductions as a business expense?
Contract employee wages Storefront maintenance cost
Insurance
Gifts to clients
Amara purchases a new vehicle for $24,500. She uses the vehicle 60%
for business and 40% for personal use.
What amount of the vehicle cost is eligible for Depreciation?
$14,700
1|Page
,Which of the following businesses are eligible for QBI deduction?
Sole proprietorship
Partnership-based venture
S corporation
Trust
Stefan regularly works from Los Angeles. Stefan decides to take a
contract job for 8 months in San Francisco.
Which of the following is Stefan's tax home now?
Los Angeles
Which factors limit the QBI component of QBI deduction?
W-2 wages
UBIA of the qualified property
Type of business
2|Page
,Bert runs a software firm. She takes one of her clients to a baseball
game. Bert buys two tickets to the game for $150 each. During the
game, she pays for hot dogs and soda totaling $68.25.
What amount can she claim for deduction?
$34.12
April lives in a rented apartment in SoHo. She operates her baking
business from her home. She has one dedicated room for her business
equipment, stock, and samples.
Based on the information above, which of the following is true?
April can deduct the portion of the rent for her home that she uses for
her baking business. April can deduct the portion of the rent since she
uses her home for storage on a regular basis.
Match
QBI inclusion/Self employment tax
QBI non-inclusion/Wage Income Actual auto expense inclusion/Fuel
and tires Actual auto expense non-inclusion/Toll charges Deductible
business expense/Transportation expense for client meeting Non-
3|Page
, deductible business expense/Lavish buffet lunch at a 5-star hotel
Business income/Royalty from a published book
Richard sells his farm produce to an organic company. Every year he
sends 3 gift baskets worth $80 each to clients. Richard doesn't have an
independent business relationship with the clients he sends gift baskets
to.
What is the total deductible expense Daniel may claim for the gift
baskets?
$75
Miscellaneous income
any income from your trade or business besides regular employee
wages. This income in your career or business is generally from your
customers or other entities. These transactions will likely be reported to
you and the IRS if they total more than specific amounts during the tax
year.
Miscellaneous income is reported on the IRS tax Form 1099-MISC(opens
in a new tab) in the case of payments for rent, royalties, prizes and
awards, substitute payments instead of dividends, and other items or
Form 1099-NEC(opens in a new tab) if the payments represent
4|Page
