Which of the following payments are currently deductible?
I.Sweeney Corporation pays tuition to an MBA program for Phyllis, the controller.
II.Amber's Construction Company pays the tuition for Karl's son. Karl is a local building inspector and has no other relationship with the company.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Which of the following payments are currently deductible?
I.Sweeney Corporation pays tuition to an MBA program for Phyllis, the controller.
II.Amber's Construction Company pays the tuition for Karl's son. Karl is a local building inspector and has no other relationship with the company.
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A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

Currently, only statement I is correct as employer-paid education expenses are deductible as long as they are job-related and meet certain criteria outlined in the tax code. However, statement II does not meet this criteria as Karl's son is not an employee and the tuition is not job-related.

Which of the Following Payments Are Currently Deductible