In each of the following cases involving travel expenses, indicate how each item is reported on the taxpayer’s tax return. Include any limitations that might affect its deductibility.
a. Marilyn lives in Houston and owns several rental properties in Denver. To supervise the management of these properties, Marilyn incurs travel expenses including airfare, lodging, and meals while traveling to and from the location of the rental properties.
b. Marc is an employee who incurs travel expenses as a salesperson. The expenses are fully reimbursed by his employer after an adequate accounting has been made.
c. Assume the same facts as in Part b, except that the expenses are not reimbursed.
d. Kay is a self-employed attorney who incurs travel expenses (including meals) to prepare a court case in a nearby city where she spends the night.