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1:7-44 Travel Expenses. Marilyn, an independent contractor who lives and works in Cleveland, ob- tains a large contract that will require her to live
1:7-44 Travel Expenses. Marilyn, an independent contractor who lives and works in Cleveland, ob- tains 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: Airfare to and from Atlanta Airfare for weekend trips to visit her family Apartment rent Meals in Atlanta Entertainment of customers Total a. What are Marilyn's total deductions for 2021? $ 800 8,000 10,000 8,500 2,000 $29,300 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 ex- penses are incurred during the extended period?
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