Tammy owns a house at the beach, which she rented out from May 1 through October 31 of the current year. During April of the current year, she spent 10 days there on vacation. In November, she spent 5 days at Dionne’s mountain home and paid Dionne fair rental value. Dionne also paid Tammy a fair rental price for using her beach house for 9 days in December of the current year. Also, in November, Tammy’s grandson stayed at the beach house for 3 days without any charge. How many days would the beach house be considered to have been used for personal purposes when applying the rules to vacation homes and dwellings?

• A.10

• B.13

• C.0

• D.22

For 8 months of each year, George lives in Ocala, Florida, training horses for several owners as an independent contractor and earning approximately $20,000. He rents an apartment for the 8 months. He stays in motels or rented rooms at various racetracks in other states for the other 4 months of the year during horse racing season and earns approximately $10,000. What part of George’s travel expenses can be deducted?

• A.Only his meals and lodging for the 4 months he is away from his tax home, Ocala.

• B.All meals and lodging for the entire year.

• C.None of his meals or lodging because he has no tax home.

• D.One-third of his total meals and lodging because he is away from his tax home one-third of the year.

Sydney is an outside salesman with a sales territory covering several states. His employer’s main office is in Milwaukee, but Sydney does not go there for business reasons. Sydney’s work assignments are temporary, and he has no way of knowing the locations of his future assignments. He often stays with a sister in Cleveland or a brother in Chicago over some weekends during the year, but he does not work in those areas. He does not pay his sister or brother for the use of the rooms. Which location is considered Sydney’s tax home?

• A.Sydney does not have a tax home.

• B.Milwaukee.

• C.Cleveland.

• D.Chicago.

Under which situation below is a deduction allowable for an office in a self-employed taxpayer’s home?

• A.You use part of your home exclusively and regularly to read financial periodicals and reports, clip bond coupons, and carry out similar activities to monitor personal investments.

• B.You use your walk-in closet at home exclusively and regularly to bill customers, clients, or patients; to set up appointments; and to order supplies. You also rent office space downtown where you also conduct those same activities. You use the home office three days a week and the rented office space two days a week.

• C.Your home is the only fixed location of your business of selling mechanics’ tools at retail. You regularly use your walk-in closet for storage of inventory and product samples. You also use this area occasionally for personal purposes.

• D.You are an attorney and use a den in your home to write legal briefs. Your family also uses the den for recreation.

In determining which place of business constitutes an individual’s tax home, all of the following factors are taken into account EXCEPT

• A.Total time spent at each place of business.

• B.The degree of business activity at each place of business.

• C.The relative income earned at each place of business.

• D.The amount of expenses incurred at each place of business.

Bobby, a self-employed taxpayer, spends $2,000 on baseball tickets in 2019 to take a client to a game, where they will discuss business. The tickets are all-inclusive, meaning they include food and beverages. While at the game, Bobby estimates that they receive food and beverages with a value of $500. How much of these expenses can Bobby deduct on his 2019 tax return?

• A.$0

• B.$1,250

• C.$250

• D.$500

Arthur lived and worked in Florida for 8 months in 2019 and earned $30,000. He then worked in California at a seasonal job at a race track the last 4 months of the year and earned $12,000 before returning to Florida. What is Arthur’s “tax home”?

• A.Since he does not have a regular place of business, he is considered a transient and his tax home is wherever he works.

• B.Since Arthur had significant earnings at two locations, it is impossible to determine his tax home.

• C.Since most of his time and income were from the job in Florida, it is considered his tax home.

• D.Since Arthur was working in California at the end of the year, it is his tax home for 2019.

With regard to business meal expenses, all of the following statements are true EXCEPT

• A.A meal expense must meet one of the two tests: the “directly related” test or the “associated with” test.

• B.Club dues are not allowed as a deduction.

• C.The cost of a Super Bowl ticket where a qualified business meal will be had during the game is deductible.

• D.The deductible limit on business meal expenses is 50%.