Marilyn, an independent contractor who lives and works in Cleveland, obtains a large contract that will require
Question:
Marilyn, an independent contractor who lives and works in Cleveland, obtains a large contract that will require her to live and work 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:
a. What are Marilyn’s total deductions for 2023?
b. Are the expenditures classified as for AGI or from AGI deductions?
c. Do the tax consequences change if Marilyn’s assignment is for a period of more than one year?
d. 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?
Step by Step Answer:
Pearsons Federal Taxation 2024 Individuals
ISBN: 9780138238100
37th Edition
Authors: Mitchell Franklin, Luke E. Richardson