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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
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: X Data Table Airfare to and from Atlanta 800 8,000 Airfare for weekend trips to visit her family Apartment rent 10,000 Meals in Atlanta 8,500 2,000 Entertainment of customers $ 29,300 Total X i Requirements a. What are Marilyn's total deductions for 2020? 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? Print Done Requirement a. What are Marilyn's total deductions for 2020? Designate which of the expenditures are potentially deductible in 2020. For 2020 Airfare to and from Atlanta Airfare for weekend trips to vist her family Apartment rent Meals in Atlanta Entertainment of customers 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: X Data Table Airfare to and from Atlanta 800 8,000 Airfare for weekend trips to visit her family Apartment rent 10,000 Meals in Atlanta 8,500 2,000 Entertainment of customers $ 29,300 Total X i Requirements a. What are Marilyn's total deductions for 2020? 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? Print Done Requirement a. What are Marilyn's total deductions for 2020? Designate which of the expenditures are potentially deductible in 2020. For 2020 Airfare to and from Atlanta Airfare for weekend trips to vist her family Apartment rent Meals in Atlanta Entertainment of customers
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