Lesson: Adjustments and Deductions to Arrive at Adjusted Gross Income and Taxable Income - Practice Questions

In this engaging lesson, Nick Palazzolo, CPA, delves into the intricacies of adjustments and deductions for determining adjusted gross income (AGI) using practical examples like Dr. Mary, a self-employed dentist. Nick demystifies which expenses are deductible for a business on Schedule C, such as work uniforms and seminar fees, while pointing out common pitfalls where candidates might misinterpret tax-deductible items. He also tackles the topic of non-business bad debts, illustrating the exact conditions under which candidates can deduct such losses from their taxable income. With a keen focus on the specific, real-life scenarios that bring clarity to complex tax concepts, Nick ensures a comprehensive understanding of what's essential for mastering these crucial topics.