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Laurice is an independent contractor and operates her own successful consulting business in Milwaukee. She has just signed a large contract with a new
Laurice is an independent contractor and operates her own successful consulting business in Milwaukee. She has just signed a large contract with a new client that will require her to spend nine months in Cincinnati. Laurice leaves her husband and children in Milwaukee and incurs the following expenses in connection with the temporary assignment: View the expenses. Read the requirements. a. Which (if any) of these items can Laurice deduct in 2023? First, let's identify the expenses that are deductible. 2023 Airfare to and from the temporary assignment Living expenses (excluding meals) Meals Personal clothing Now calculate the total deductible amount in 2023. The deductible amount for 2023 is b. Would your answer to Part a change if Laurice, after completing the nine month assignment, needed to spend an additional six months in Cincinnati? A. Yes, the answer would change. Laurice could deduct the expenses for the nine-month assignment as well as expenses incurred in Ohio for an additional three months. None of her expenses incurred in Ohio after a year would be deductible. B. No, the answer would not change. Although her employment is retroactively treated as indefinite, Laurice could deduct the expenses for the nine-month assignment since she is moving to a different state. C. Yes, the answer would change. None of the expenses are deductible. Since Laurice accepted a full-time assignment, her employment is retroactively treated as indefinite. Travel expenses are only deductible if the taxpayer is temporarily away from home. D. No, the answer would not change. Laurice could deduct the expenses for the nine-month assignment, as that employment would be considered temporary. None of her expenses incurred in Ohio after the nine-month assignment would be deductible as the assignment would be indefinite in nature.
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