Han is a self-employed carpenter and his wife, Christine, works full time as a grade school teacher.Han paid $525 for carpentry tools and supplies, and Christine paid $3,600 as her share of health insurance premiums (not with pretax dollars)for Han and herself in a qualified plan provided by the school district.Which of the following is a true statement?

Question

Quizplus · Accepted Answer

The tools and supplies are deductible for AGI because they are considered ordinary and necessary business expenses for Han's self-employed carpentry business. Christine's health insurance premiums are deductible as an itemized deduction because they were paid with after-tax dollars and are not a business expense.

Han Is a Self-Employed Carpenter and His Wife, Christine, Works