In November 2021, Kortney (who is a self-employed management consultant) travels from Chicago to Barcelona (Spain) on business. Sheis gone for 10 days (including 2 days of travel), during which time she spends 5 days conducting business and 3 days sightseeing. Herexpenses are $1,930 (airfare), $265 per day (meals at local restaurants), and $450 per night (lodging). Because Kortney stayed withrelatives while sightseeing, she paid for only 5 nights of lodging. Compute Kortney's deductions for the following:If required, round your answers to the nearest dollar.a. Deduction for airfare:1,351 ✔FeedbackCheck My Workb. Deduction for meals:928 XFeedbackCheck My Workc. Deduction for lodging:2,250 ✔

Deduction means reducing the taxable income by a specific amount that is allowed under the income…

Answered: In November 2021, Kortney (who is a…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter11: Individuals As Employees And Proprietors

Section: Chapter Questions

Problem 5CE

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Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters, but he makes the final decision on all rentals. He also is responsible for setting the weekly rental price of the house. During the current year, the house rents for 1,500 per week. Hassad pays a commission of 150 and a cleaning fee of 75 for each week the property is rented. During the current year, he incurs the following additional expenses related to the property: a. What is the proper tax treatment if Hassad rents the house for only 1 week (7 days) and uses it 50 days for personal purposes? b. What is the proper tax treatment if Hassad rents the house for 8 weeks (56 days) and uses it 44 days for personal purposes? c. What is the proper tax treatment if Hassad rents the house for 25 weeks (175 days) and uses it 15 days for personal purposes?
In 2021, Carlos drives from his home in Los Angeles to Oregon to consult with a client. He works for 1 day and spends 3 days enjoying Oregon since the consultation was right before a 3-day weekend. His expenses were $175 to drive to Oregon and back, $600 for lodging, $50 for food from a convenience store on the day that he worked, and $125 for restaurant food on the other 3 days. How much of his travel expenses are deductible? $800 b.$350 c.$0 d.$200 e.$175
Kim works for a clothing manufacturer as a dress designer. During 2021, she travels to New York City to attend five days of fashion shows and then spends three days sightseeing. Her expenses are as follows: Airfare $800 Lodging (8 nights) 1,040 Meals at local restaurants (8 days) 960 Airport transportation 110 Assume lodging/meals are the same amount for the business and personal portion of the trip ($130 per day for lodging and $120 per day for meals). If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar. a. Determine Kim's business expenses, presuming no reimbursement. Airfare 800 Lodging 650 Meals 600 Transportation 110 Total 2,160 What amount may she deduct on her tax return? 0
In November 2023, Kortney (who is a self-employed management consultant) travels from Chicago to Barcelona (Spain) on business. She is gone 10 days (including two days of travel) during which time she spends five days conducting business and three days sightseeing. Her expenses are $2,590 (airfare), $280 per day (meals at local restaurants), and $345 per night (lodging). Because Kortney stayed with relatives while sightseeing, she only paid for five nights of lodging. Compute Kortney's deductions for the following If required, round your answers to the nearest dollar. a. Deduction for airfare: 1,813 Feedback ✓ Check My Work An itemized deduction is allowed for unreimbursed travel expenses related to a taxpayer's employment. Travel expenses are mo defined in the Code than are transportation expenses. b. Deduction for meals: c. Deduction for lodging: $ 1,725
During 2021, Harry, a self-employed accountant, travels from Kansas City to Miami for a seven-day business trip. While in Miami, Harry decides to stay for an additional 5 days of vacation. Harry pays $600 for airfare, $200 for restaurant meals, and $500 for lodging while on business. The cost of meals and lodging while on vacation was $300 and $500, respectively. How much may Harry deduct as travel expenses for the trip?
Melissa recently paid $760 for round trip airfare to San Francisco to attend a business conference for three days. Melissa also put the following expenses: $370 fee to register for the conference, $365 per night for three nights' lodging, $250 for meals and $300 for can fare. Suppose that San Francisco was Melissa permanent residence and business location. She attended the conference in San Francisco and paid $370 for the registration fee. She drove 153 miles over the course of theee days and paid $190 for parking at the conference hotel. In addition, she spent $430 for breakfast and dinner over the three days of the conference. She bought breakfast on the way to the conference hotel, and she bought dinner on her way home each night from the conference. What amount of these costs can Melissa deduct as business expenses?
Feedback 0 Check My Work b. Would the tax treatment of Kim's deduction differ if she was an independent contractor? The deductible expenses would be $ 4,000 X and the expenses would be classified as a deduction for AGI
Kim works for a clothing manufacturer as a dress designer. During 2020, she travels to New York City to attend five days of fashion shows and then spends three days sightseeing. Her expenses are as follows: Airfare $1,500 Lodging (8 nights) 1,920 Meals (8 days) 1,440 Airport transportation 120 Assume lodging/meals are the same amount for the business and personal portion of the trip ($240 per day for lodging and $180 per day for meals). If an amount is zero, enter "0". a. Determine Kim's business expenses, presuming no reimbursement. Airfare Lodging X Мeals Transportation X Total What amount may she deduct on her tax return? X Feedback b. Would the tax treatment of Kim's deduction differ if she was an independent contractor? The deductible expenses on her tax return would be $ X and the expenses would be classified as a deduction for AGI V
Melissa recently pod $760 for round trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $370 fee to register for the conference, $365 per night for three nights' lodging, $250 for meals and $300 for cab fare. Suppose that while Melissa was on the coast, she also spent two day's sightseeing the national parks in the area. To do the sightseeing, she paid $1,710 for transportation, $1,285 for lodging, and $475 for meals during this part of her trip, which she considers personal in nature. What amount of these costs can Melissa deduct as business expense?
Kim works for a clothing manufacturer as a dress designer. During 2020, she travels to New York City to attend five days of fashion shows and then spends three days sightseeing. Her expenses are as follows: Airfare $1,300 Lodging (8 nights) 1,690 Meals (8 days) 1,560 Airport transportation 125 Assume lodging/meals are the same amount for the business and personal portion of the trip ($211 per day for lodging and $195 per day for meals). If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar. a. Determine Kim's business expenses, presuming no reimbursement. Airfare $ Lodging Meals Transportation Total $ What amount may she deduct on her tax return?$ b. Would the tax treatment of Kim's deduction differ if she was an independent contractor?The deductible expenses would be $______________ and the expenses would be classified as a deduction for AGI…
Mike is an independent contractor in 2021. Mike attends a professional trade association in Los Angeles. He spends three days at the meeting and two days vacationing before the meeting. Mike's total expenses for the entire five days include the following: Airfare to and from LA $450 Meals ($50 per day) $250 Hotel ($100 per day) $500 Entertainment of customers (business is discussed) $500 Total = $1700 a. How much can Mike deduce for business related expenses for 2021? b. How would your answers change if Mike spend two days at the meeting and three days vacationing?
Danny owns an electronics outlet in Dallas. In 2021, he paid $620 to register for a four-day course in management in Chicago. Danny paid $780 in airfare. After the course, Danny spent the last day sightseeing. During the trip, Danny paid $184 per night for five nights' lodging, $180 per day for meals in restaurants, and $120 per day for a rental car. What amount of these travel expenditures may Danny deduct as business expenses? (Leave no answers blank. Enter zero if applicable.) Danny may deduct travel expenses of $

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