Reference no: EM131464603

Background You are a CPA at a regional accounting firm. The CEO of one of your largest clients, Erik Rand, called asking questions about deductibility of job search expenses for his daughter, Maya. Maya is 25 and a recent college graduate. She worked in the Los Angeles area in film production for two years and was laid off about three months ago. According to Erik, she made about $25,000 during 2015 before she lost the job. She is seeking employment in film production and has incurred expenses for travel, lodging, meals and a job placement service. Based on your conversation with Erik, her job search has been focused in Los Angeles but she also took an overnight trip to New York where she interviewed and returned that day. Another interview was in Madrid, Spain. For that trip she interviewed on the second day and then spent ten days sightseeing with a friend. Assignment Erik has asked you to prepare a letter explaining the rules for deductibility of job search expenses for Maya. She files her own return and the deduction, if any, would be reported there. Be sure to address the travel issues and the types of costs that are deductible including any other limitations they should understand. Erik will send the letter to Maya.