Reference no: EM132231

Question 1:

Richard traveled from New Orleans to New York for both vacation and business. He spent 4 days conducting business and some days vacationing. He incurred the given expenses:

Airfare                    $460
Lodging-per day        175
Meals-per day           100
Business Entertainment 800

Evaluate his miscellaneous itemized deduction, consider Richard is an employee and is not reimbursed under the given two circumstances?

A. He spends 3 days on vacation, in addition to the business days.

B. He spends 6 days on vacation, in addition to the business days.

Question 2:

Arah purchased a new car at the starting of the year. She makes an adequate accounting to her employer and receives a @2,400 (10,000 miles*20 cents per mile) reimbursement in 2013 for employment-related business miles. She incurs the given expenses related to both business and personal use:

Gas and oil $6,000
Repairs and maintenance 2,500
Depreciation 3,000
Insurance 1,800
Total $13,300

She also spent $200 on packing and tolls that were related to business. During the year she drove a total 20,000 miles.

a. Determine Sarah's deductible transportation expense, using the actual expense method.

b. Determine Sarah's deductible transportation expense, using the standard mileage method.

Question 3:

In 1997, Paige paid $200,000 to purchase a new residence. She paid a realtor $5,000 to help set the house and paid legal fees of $3,000 to make certain that the seller had legal title to the property. Under the provisions of tax law in effect at the time of the purchase, she deferred a gain of $30,000 from the sale of a former residence in 1996. In 1999, she included a new porch to the house at a cost of $15,000 and installed central air conditioning at a cost of $12,000. Since purchasing he house, she has paid $2,000 in repairs. What is the adjusted basis of the home