9. Charlie lives in California, was an employee and recently became unemployed. To improve his chances for finding a new job in the same occupation, he traveled to New York for several interviews, bringing along two of his friends. Charlie was not required to bring his two friends. He stays in New York for two days. His expenses were:

Plane fare for Charlie $460

Plane fare for Charlies friends $950

Taxis (same regardless of #) $40

Meals (Charlies only) $100

Lodging (all stayed in same room) $350

What is the maximum business deduction on his California tax return for the expenses associated with the trip (assume his tax preparation fees already exceeded 2% of his AGI)? No dollar sign needed.

Charlie owns one house that he lives in. He bought the house in 2000 for $530,000, using a $390,000 loan. In 2005 when the loan balance was $190,000 (he had paid off $200,000 of the $390,000 loan) and the house was worth $600,000, he refinanced the loan with a new loan of $410,000. He used $150,000 of the extra cash (he obtained $220,000 in cash) to remodel the kitchen, bathrooms and build a pool. The rest of the money he used to pay for a vacation. In 2017 he obtained a second additional loan secured by the house of $60,000 (the house was still worth $600,000) and he used $40,000 of the money to redo his kitchen, the remainder of the money he used for a new car. If during the year Charlie paid $6,000 in interest on the $60,000 loan, how much of the $6,000 interest expense would you expect to be deductible on his Federal return? Assume none of the balance of the either outstanding loan was paid down. Show your work.