(Help with part D.)
Travel Expenses. 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)?
All are deductible, except meals and entertainment are at 50%
29,300 ‘ 5,250 = 24,050
b. Are each of these expenditures classified as for AGI or from AGI deductions?
Deductions from AGI
c. If Marilyn’s AGI is $120,000, what is the amount of the deduction for the expenditures?
2% of 120,000 = 2,400
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?