Marilyn a business executive who lives and works in

Reference no: EM13602677

Marilyn, a business executive who lives and works in Cleveland, accepts a temporary out-of-town assignment in Atlanta for a period of ten months. Marilyn leaves her husband and children in Cleveland and rents an apartment in Atlanta during the ten-month period. Marilyn incurs the following expenses, none of which are reimbursed by her employer:

Airfare to and from Atlanta $ 800
Airfare for weekend trips to visit her family 8,000
Apartment rent 10,000
Meals in Atlanta 8,500
Entertainment of customers 2,000
Total $29,300

a. Which of the expenditures listed above (if any) are deductible by Marilyn (before any limitations are applied)?

b. Are each of these expenditures classified as for AGI or from AGI deductions?

c. If Marilyn's AGI is $120,000, what is the amount of the deduction for the expenditures?

d. Do the tax consequences change if Marilyn's assignment is for a period of more than one year and is for an indefinite period rather than a temporary period?

e. Do the tax consequences in Parts a through c change if it was realistically expected that the work would be completed in ten months but after the ten-month period Marilyn is asked to continue for seven more months and if an additional $10,000 of travel expenses are incurred during the extended period?

Reference no: EM13602677

Questions Cloud

A company estimates that ordering costs are 200 per order : a company estimates that ordering costs are 2.00 per order picking costs are 1.00 per unique item ordered packing costs

Deer company approaches core with a special order for 15000 : deer company approaches core with a special order for 15000 units at a price of 8.50 per unit. variable costs will be

Assume that a taxpayer purchases a computer in 2010 that : assume that a taxpayer purchases a computer in 2010 that has an estimated useful life of 10 yrs. if the computer is

A company believes it can sell 5000000 of its proposed new : a company believes it can sell 5000000 of its proposed new optical mouse at a price of 11.00 each. there will be

Marilyn a business executive who lives and works in : marilyn a business executive who lives and works in cleveland accepts a temporary out-of-town assignment in atlanta for

Deer company approaches core with a special order for 15000 : core manufacturing makes a single product. budget information regarding the current period is given below revenue

Kathleen battle corp it authorized to issue 10000 shares of : kathleen battle corp it authorized to issue 10000 shares of 8 100 par value preferred stock. and 500000 shares of no

Monthly costs of providing the tanning service include 2500 : betty boulder is the owneroperator of a tanning salon. she is considering four price levels for a weekly tanning pass.

Xcaliber manufactures high-end flatware one of the crucial : xcaliber manufactures high-end flatware. one of the crucial processes in flatware production is polishing. the company

User Account

All Pages