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TRUMP UNIVERSITY WEALTH BUILDING 101

Downloadable Exhibit 18.1 (Continued)
10. A cash-basis taxpayer may not claim a bad debt deduction unless the amount
to be deducted has previously been included as income. (True or False)

Answers:

1. d—The standard mileage deduction is .445 per mile
2. d—$97,500
3. c—SEP
4. d—100%
5. c—35%
6. c—Corporations other than S corporations
7. a—Receipts and canceled checks
8. True—Businesses with inventories cannot use the cash-basis method of
accounting
9. False—Compensation generally must be reported as income in the year
received
10. True—Cash-basis taxpayers typically cannot take such a deduction because
money is normally not included in income until it is received

* Note : A blank version of this exhibit can be downloaded from www.trumpuniversity.com/
wealthbuilding101 for your personal use.

Understand What You’re Up Against

Your accountant may tell you that you are in a 15 percent or 25 percent tax
bracket, but that’s not the whole story. If you’ve ever received a paycheck, you
know that your employer takes taxes out of your pay, but few people know
what they are, exactly, and at what rate they are withheld. In this country,
we’re used to living off the “net” income we receive after taxes; we don’t
receive 100 percent of what we earn because our employer is required by law
to pay taxes on our behalf and withholds money from our paychecks. I’ve
often said that if we wanted true tax reform in the United States, we would do
away with tax withholding and make every taxpayer actually write a check to
Uncle Sam every pay period. If you did that—if you saw just how much with-
holding you actually pay—you would be incredibly motivated to reduce your
tax bill as quickly as possible.
In looking at the taxes that are deducted from your paycheck, you will see
generally four types:

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