ACC 456 STUDY Extraordinary Success/acc456study.com ACC 456 STUDY Extraordinary Success/acc456study. | Page 27

In each of the following cases involving travel expenses, indicate how
each item is reported on the taxpayer’s tax return. Include any
limitations that might affect its deductibility.
·
a.Marilyn lives in Houston and owns several rental properties in
Denver. To supervise the management of these properties, Marilyn
incurs travel expenses including airfare, lodging, and meals while
traveling to and from the location of the rental properties.
·
b.Marc is an employee who incurs travel expenses as a
salesperson. The expenses are fully reimbursed by his employer after
an adequate accounting has been made.
·
c.Assume the same facts as in Part b, except that the expenses
are not reimbursed.
·
d.Kay is a self-employed attorney who incurs travel expenses
(including meals) to prepare a court case in a nearby city where she
spends the night.
I:9-6
Latoya, a college professor, takes a nine-month leave of absence from
her employment at a college in Ohio and accepts a visiting
professorship (temporary assignment) at a college in Texas. Latoya
leaves her husband and children in Ohio and incurs the following
expenses in connection with the temporary assignment:
I:13-3
Alice owns timber, purchased six years ago, with an adjusted basis of
$50,000. The timber is cut for use in her furniture business on October
1, when the FMV of the timber is $200,000. The FMV of the timber on
January 1 is $190,000. May Alice treat any of the gain as Sec. 1231
gain? If so, how much?
I:13-11