Dorothy, an independent contractor who lives and works in Cleveland, obtains a large contract that will...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Dorothy, an independent contractor who lives and works in Cleveland, obtains a large contract that will require her to live and work in Atlanta for a period of ten months. Dorothy leaves her husband and children in Cleveland and rents an apartment in Atlanta during the ten-month period. Dorothy incurs the following expenses: (Click the icon to view the expenses.) Read the requirements. Data Table Requirement a. What are Dorothy's total deductions for 2019? Designate which of the expenditures are potentially deductible in 2019. For 2019 Airfare to and from Atlanta 600 Airfare to and from Atlanta Deductible Airfare for weekend trips to visit her family 10,000 Airfare for weekend trips to vist her family Deductible Apartment rent 8,500 Apartment rent Deductible Meals in Atlanta 8,800 Meals in Atlanta Deductible Entertainment of customers 2,400 Entertainment of customers Not deductible 2$ 30,300 Total Now calculate the total deductible amount in 2019. The deductible amount for 2019 is 27,900 . Print Done Requirement b. Are the expenditures classified as for AGI or from AGI deductions? Cor 2010 For 2019 Airfare to and from Atlanta Airfare for weekend trips to vist her family Apartment rent Meals in Atlanta Entertainment of customers Requirement c. Do the tax consequences change more than one year? Deductible for AGI O A. The airfares, apartment rent and meals woi Deductible from AGI Not deductible B. If Dorothy's assignment is for a period of m equence changes. The deductible amount for 2019 is still $23,500. C. In this situation, the airfare for weekend trips to visit her family would not be deductible. D. In this situation, only the airfare to and from Atlanta would be deductible as a moving expense. Dorothy, an independent contractor who lives and works in Cleveland, obtains a large contract that will require her to live and work in Atlanta for a period of ten months. Dorothy leaves her husband and children in Cleveland and rents an apartment in Atlanta during the ten-month period. Dorothy incurs the following expenses: (Click the icon to view the expenses.) Read the requirements. Requirement c. Do the tax consequences change if Dorothy's assignment is for a period of more than one year? A. The airfares, apartment rent and meals would be personal nondeductible expenses. B. If Dorothy's assignment is for a period of more than one year, there are no tax consequence changes. The deductible amount for 2019 is still $23,500. C. In this situation, the airfare for weekend trips to visit her family would not be deductible. D. In this situation, only the airfare to and from Atlanta would be deductible as a moving expense. Requirement d. 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 Dorothy is asked to continue for seven more months and if an additional $9,000 of travel expenses are incurred during the extended period? O A. Only the expenses associated with the first twelve months would be deductible if the position of the IRS is upheld by the courts in 2019. The apartment rent, airfare and meal expenses for the last five months are not deductible because the move lasts more than one year. The entertainment is still not deductible. B. None of the expenses are deductible because the move lasts more than one year and is considered indefinite for the extended period. O C. Only the arifare to and from Atlanta would be deductible as a moving expense because the move lasts more than one year and is considered indefinite. O D. Only the expenses associated with the first ten months would be deductible if the position of the IRS is upheld by the courts in 2019. The apartment rent, airfare and meal expenses for the last seven months are not deductible because the move lasts more than one year and is considered indefinite for the extended period. The entertainment is still not deductible. Dorothy, an independent contractor who lives and works in Cleveland, obtains a large contract that will require her to live and work in Atlanta for a period of ten months. Dorothy leaves her husband and children in Cleveland and rents an apartment in Atlanta during the ten-month period. Dorothy incurs the following expenses: (Click the icon to view the expenses.) Read the requirements. Data Table Requirement a. What are Dorothy's total deductions for 2019? Designate which of the expenditures are potentially deductible in 2019. For 2019 Airfare to and from Atlanta 600 Airfare to and from Atlanta Deductible Airfare for weekend trips to visit her family 10,000 Airfare for weekend trips to vist her family Deductible Apartment rent 8,500 Apartment rent Deductible Meals in Atlanta 8,800 Meals in Atlanta Deductible Entertainment of customers 2,400 Entertainment of customers Not deductible 2$ 30,300 Total Now calculate the total deductible amount in 2019. The deductible amount for 2019 is 27,900 . Print Done Requirement b. Are the expenditures classified as for AGI or from AGI deductions? Cor 2010 For 2019 Airfare to and from Atlanta Airfare for weekend trips to vist her family Apartment rent Meals in Atlanta Entertainment of customers Requirement c. Do the tax consequences change more than one year? Deductible for AGI O A. The airfares, apartment rent and meals woi Deductible from AGI Not deductible B. If Dorothy's assignment is for a period of m equence changes. The deductible amount for 2019 is still $23,500. C. In this situation, the airfare for weekend trips to visit her family would not be deductible. D. In this situation, only the airfare to and from Atlanta would be deductible as a moving expense. Dorothy, an independent contractor who lives and works in Cleveland, obtains a large contract that will require her to live and work in Atlanta for a period of ten months. Dorothy leaves her husband and children in Cleveland and rents an apartment in Atlanta during the ten-month period. Dorothy incurs the following expenses: (Click the icon to view the expenses.) Read the requirements. Requirement c. Do the tax consequences change if Dorothy's assignment is for a period of more than one year? A. The airfares, apartment rent and meals would be personal nondeductible expenses. B. If Dorothy's assignment is for a period of more than one year, there are no tax consequence changes. The deductible amount for 2019 is still $23,500. C. In this situation, the airfare for weekend trips to visit her family would not be deductible. D. In this situation, only the airfare to and from Atlanta would be deductible as a moving expense. Requirement d. 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 Dorothy is asked to continue for seven more months and if an additional $9,000 of travel expenses are incurred during the extended period? O A. Only the expenses associated with the first twelve months would be deductible if the position of the IRS is upheld by the courts in 2019. The apartment rent, airfare and meal expenses for the last five months are not deductible because the move lasts more than one year. The entertainment is still not deductible. B. None of the expenses are deductible because the move lasts more than one year and is considered indefinite for the extended period. O C. Only the arifare to and from Atlanta would be deductible as a moving expense because the move lasts more than one year and is considered indefinite. O D. Only the expenses associated with the first ten months would be deductible if the position of the IRS is upheld by the courts in 2019. The apartment rent, airfare and meal expenses for the last seven months are not deductible because the move lasts more than one year and is considered indefinite for the extended period. The entertainment is still not deductible.
Expert Answer:
Answer rating: 100% (QA)
The amount of deduction for the expenditures before any nondeductible floor limitation are applied ... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
Students also viewed these accounting questions
-
Marilyn, an independent contractor who lives and works in Cleveland, obtains a large contract that will require her to live and work in Atlanta for a period of ten months. Marilyn leaves her husband...
-
Robert is an independent contractor who lives and works in Philadelphia, PA. Robert rarely travels out-of-town but travels extensively in the Philadelphia area meeting with customers. He is home...
-
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...
-
Ari Goldstein issued $300,000 of 11%, five-year bonds payable on January 1, 2024. The market interest rate at the date of issuance was 10%, and the bonds pay interest semiannually. Requirements 1....
-
Suppose that the n n matrix A has the singular value decomposition A = U SVt. Show that A1 exists if and only if S1 exists and find a singular value decomposition for A1 when it exists.
-
A pulse input to a vessel gives the results shown in Fig. P11.3. (a) Are the results consistent? (b) If the results are consistent, determine the amount of tracer introduced M, and the E curve. v = 4...
-
The following data pertain to the processing speed (GHz) of a computer and the time (minutes) it takes to boot up: Calculate \(r\). Processing Speed Boot Time 1.2 5 1.0 1 1.3 1.6 2 1.8 324 3 1.1 8...
-
1. What is the nature of the international business environments Harley faces? What types of risks does the firm face? 2. How can Harley benefit from expanding abroad? What types of advantages can...
-
4. (30 points) In a small community with a population of 4,000, an incident released E. coli into the water supply, resulting in the infection of 50% of the community's residents. a) Calculate the...
-
Peter Cheese, current CEO of CIPD asserts, People professionals are a vital function in supporting businesses to adapt to rapidly changing circumstances. Explain two different models or theories to...
-
Bridgend Ltd started trading on 1 January 2021 with share capital of 105,000. The company needed a machine from 1 January 2021, costing 75,000. The machine had a useful economic life of 10 years with...
-
Show why two wires attract or repel each other depending on the direction of energy and current. Draw the wires with same current direction and opposite current direction and show the direction of...
-
Three companies' stock prices over the course of 30 days are provided. Using the data, compute and interpret the coefficient of variation. Compute the coefficient of variation for Company A. The...
-
In 1943, psychologist Abraham Maslow wrote a paper, "A Theory of Human Motivation," which explained how drive and motivation are correlated to the understanding of human needs and behavior. Maslow's...
-
The payoff matrix below shows the profit for two competing airlines: Party Air and Fun Jet. Each firm is deciding if they should offer the same flights or more flights. Party Air Fun Jet Same Flights...
-
What makes a good strategy? Notes : You must refer to at least two different essential readings from the module in your answer. You must reference your answer using Harvard in-text referencing.
-
Molly is 16 years old and qualifies as a dependent of her parents. Molly earned wages of $3,000 and had interest income of $4,000 during 2023. Molly had expenses of $950 related to producing the...
-
Highland Theatre is owned by Finnean Ferguson. At June 30, 2014, the ledger showed the following: Cash, $6,000; Land, $100,000; Buildings, $80,000; Equipment, $25,000; Accounts Payable, $5,000;...
-
Jeremy purchased undeveloped oil and gas property five years ago. He paid $300,000 for intangible drilling and development costs and elected to expense the $300,000. During the current year, Jeremy...
-
Summarize the rules that explain which parent receives the dependency exemption for children in cases of divorce.
-
In 2015, Ed, Fran, and George form Jet Corporation. Ed contributes land (a capital asset) having a $35,000 FMV purchased as an investment in 2011 for $15,000 in exchange for 35 shares of Jet stock....
-
The details in Figure 16.9 relate to D Co. Using that information and appropriate ratios, prepare a financial report on the company. The opening inventory value figures were :135,000 20X1 actual and...
-
A loan is made to a company of $20,000, which is equal to :10,000 at the date of the loan during year 1. The loan is legally denominated in dollars. At the end of year 1, the loan is translated as...
-
The process of expressing a foreign subsidiarys balance sheet in its parents currency is called: A. Currency translation. B. Currency change. C. Currency conversion. D. Currency swap.
Study smarter with the SolutionInn App