Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 9, Problem 33P
On Thursday, Justin flies from Baltimore (where his sole proprietorship office is located) to Cadiz (Spain). He conducts business on Friday and Tuesday; vacations on Saturday, Sunday, and Monday (a legal holiday in Spain); and returns to Baltimore on Thursday. Justin was scheduled to return home on Wednesday, but all flights were canceled due to bad weather. As a result, he spent Wednesday watching floor shows at a local casino.
- a. For tax purposes, what portion of Justin’s trip is regarded as being for business?
- b. Suppose Monday was not a legal holiday. Would this change your answer to part (a)? Explain.
- c. Under either part (a) or (b), how much of Justin’s airfare qualifies as a deductible business expense?
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LO.3 On Thursday, Justin flies from Baltimore (where the office for his sole proprietorship is located) to Cadiz (Spain). He conducts business on Friday and Tuesday; vacations on Saturday, Sunday, and Monday (a legal holiday in Spain); and returns to Baltimore on Thursday. Justin was scheduled to return home on Wednesday, but all flights were canceled due to bad weather. As a result, he spent Wednesday watching floor shows at a local casino.
For tax purposes, what portion of Justin’s trip is regarded as being for business?
Suppose Monday was not a legal holiday. Would this change your answer to part (a)? Explain.
Under either part (a) or (b), how much of Justin’s airfare qualifies as a deductible business expense?
Monica, a self-employed taxpayer, travels from her office in Boston to Lisbon, Portugal, on business. Her absence of 13 days was spent as follows:
Thursday
Depart for and arrive in Lisbon
Friday
Business transacted
Saturday and Sunday
Vacationing
Monday through Friday
Business transacted
Saturday and Sunday
Vacationing
Monday
Business transacted
Tuesday
Depart Lisbon and return to office in Boston
a. For tax purposes, how many days has Monica spent on business?fill in the blank ff3ca702cfdf052_1 days
b. What difference does it make?
If Monica's trip satisfies the seven day/thirteen day
test or the less-than-25/more-than-25
% test, then her transportation costs do not have to/must
be allocated between business and personal.
c. Could Monica have spent more time than she did vacationing on the trip without loss of existing tax benefits?
Monica can/cannot
satisfy the seven-day/thirteen-day/less-than-25%/more-than-25%…
Asshish is a medical doctor and a scientist. He works at a local hospital in the mornings, attending to patients.
At lunchtime he takes a train to the local university where he works in a research laboratory. At the end of the
day, he takes the train home.
Advise Asshish as to the tax deductibility of the train fares.
O The train fare from the university to his home will not be deductible as it is a private or domestic expense
O The train fare from the university to his home will be deductible as it is necessary to put him in a position to earn the
income
O The train fare from the university to his home will not be deductible as it is a fringe benefit tax
O The train fare from the university to his home will be deductible as it is directly connected to his income exertion
Chapter 9 Solutions
Individual Income Taxes
Ch. 9 - Prob. 1DQCh. 9 - Mason performs services for Isabella. In...Ch. 9 - Milton is a resident of Mobile (Alabama) and is...Ch. 9 - In 2017, Emma purchased an automobile, which she...Ch. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQ
Ch. 9 - Prob. 11DQCh. 9 - Prob. 12DQCh. 9 - Prob. 13DQCh. 9 - Prob. 14DQCh. 9 - Paul wholly owns and operates an office supplies...Ch. 9 - Prob. 16DQCh. 9 - Prob. 17DQCh. 9 - Lara uses the standard mileage method for...Ch. 9 - Fred, a self-employed taxpayer, travels from...Ch. 9 - Prob. 20CECh. 9 - Prob. 21CECh. 9 - In 2019, Robert entertains four key clients and...Ch. 9 - In 2019, the CEO of Crimson, Inc., entertains...Ch. 9 - Prob. 24CECh. 9 - Cindy maintains an office in her home that...Ch. 9 - Prob. 26CECh. 9 - Prob. 27CECh. 9 - Prob. 28PCh. 9 - Prob. 29PCh. 9 - Prob. 30PCh. 9 - In June of this year, Dr. and Mrs. Bret Spencer...Ch. 9 - Prob. 32PCh. 9 - On Thursday, Justin flies from Baltimore (where...Ch. 9 - Monica, a self-employed taxpayer, travels from her...Ch. 9 - Prob. 35PCh. 9 - Prob. 36PCh. 9 - Prob. 37PCh. 9 - Prob. 38PCh. 9 - Prob. 39PCh. 9 - Prob. 40PCh. 9 - Shelly has 200,000 of QBI from her local jewelry...Ch. 9 - Prob. 42PCh. 9 - Prob. 43PCh. 9 - Prob. 44PCh. 9 - Prob. 45PCh. 9 - Prob. 46PCh. 9 - Ben and Molly are married and will file jointly....Ch. 9 - Prob. 48PCh. 9 - Prob. 49PCh. 9 - Prob. 50PCh. 9 - David R. and Ella M. Cole (ages 39 and 38,...Ch. 9 - Addison Parker (Social Security number...Ch. 9 - In the current year, Barlow moved from Chicago to...Ch. 9 - Prob. 2CPACh. 9 - Prob. 3CPACh. 9 - Prob. 4CPACh. 9 - Prob. 5CPACh. 9 - Prob. 6CPACh. 9 - Calculate the taxpayers 2019 qualifying business...Ch. 9 - Prob. 8CPA
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