I:9-55 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)?

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?