(b) Chichi is unsure whether she should use her own car or rent a car to go on an extended cross-country trip for two (2) weeks during the mid-term break. Explain and identify which of the above costs are relevant and which are irrelevant in her decision.
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- Brandi holds two jobs and attends graduate school on weekends. The education improves her skills, but does not qualify her for a new trade of business. Before going to the second job, she returns home for dinner. Relevant mileage is as follows? Home to first job 10 miles First job to second job 15 miles Home to second job 18 miles Home to university 9 miles How much of the mileage qualifies for deduction purposes?a. What amount of these costs can Melissa deduct as business expenses? b. Suppose that while Melissa was on the coast, she also spent two days sightseeing the national parks in the area. To do the sightseeing, she paid $1,100 for transportation, $800 for lodging, and $355 for meals during this part of her trip, which she considers personal in nature. What amount of the total costs can Melissa deduct as business expenses? c. Suppose that Melissa made the trip to San Francisco primarily to visit the national parks and only attended the business conference as an incidental benefit of being present on the coast at that time. What amount of the airfare can Melissa deduct as a business expense? d. Suppose that Melissa's permanent residence and business were located in San Francisco. She attended the conference in San Francisco and paid $380 for the registration fee. She drove 182 miles over the course of three days and paid $183 for parking at the conference hotel. In addition, she spent…jam is single and has to relocate in order to begin a new job. She travels 400 kilometers closer to her new workplace. It will take her one day to complete the journey. She pays for motels in her new location for ten days while she waits for her apartment, which costs $100 per day ($1,000 total). She pays a mover $1,200 to transport her belongings. What is the maximum moving expense deduction jam may claim, provided she has enough income in the new location?
- Miss Jana Lim, a graduate of Cebu University, is going to Manila to review for the CPA Board Examination. She is considering to stay in a dormitory that is just a stone’s throw away from the review school during her 5-month stay in Manila. Her aunt, however, is offering her a room in her house which is about three (3) kilometers away from the school. She told her aunt that she would first conduct differential analysis before making her decision on where to stay. She listed the following costs and cost estimates: If she will stay in Her Aunt’s House A Dormitory Plane ticket: Cebu-Manila-Cebu ₱8,000 ₱8,000 Tuition Fee (1) 1,000 1,000 Boarding and lodging fee - 25,000 Share in food and household expenses 10,000 - Transportation (Aunt’s house-school-Aunt’s house) 1,700 - Snacks, etc., while in school 4,000 4,000 Books used in college to be used during the review 10,000 10,000 New review books to be purchased 2,000 2,000 Clothes to be brought to Manila…Ginny owns a house in northern Wisconsin that she rents for $1,600 per month. Ginny does not use the property personally. While she was in Europe for Christmas, the water heater on the property failed, and her tenants repaired it for $1,200. For the following month’s rent (January), her tenants paid her $400 for rent ($1,600 − $1,200). What amounts should Ginny include for rental income and repair expense, respectively, for January?Courtney receives most of her income from wages from her job as a high school teacher. She also receives supplemental income from freelance tutoring part-time during the summer. Because her tutoring income is not subject to withholding, Courtney is concerned that she will have a balance due at the end of the year. Which of the following is an option you can recommend to Courtney to avoid a balance due?
- Aaron, a resident of Minnesota, has been a driver for Green Delivery Service for the past six years. For this purpose, he leases a truck from Green, and his compensation is based on a percentage of the income resulting from his pickup and delivery services. Green allows its drivers to choose their 10-hour shifts and does not exercise any control on how these services are carried out (e.g., the route to be taken or the order in which parcels are delivered or picked up). Under Green’s operating agreement with its drivers, Green can terminate the arrangement after 30 days’ notice. In practice, however, Green allows its truckers to quit immediately without giving advance notice. The agreement also identifies the drivers as independent contractors. Green maintains no health or retirement plans for its drivers, and each year it reports their income by issuing Forms 1099–MISC (and not Forms W–2). Green requires its drivers to maintain a commercial driver’s license and be in good standing with…Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters, but he makes the final decision on all rentals. He also is responsible for setting the weekly rental price of the house. During the current year, the house rents for 1,500 per week. Hassad pays a commission of 150 and a cleaning fee of 75 for each week the property is rented. During the current year, he incurs the following additional expenses related to the property: a. What is the proper tax treatment if Hassad rents the house for only 1 week (7 days) and uses it 50 days for personal purposes? b. What is the proper tax treatment if Hassad rents the house for 8 weeks (56 days) and uses it 44 days for personal purposes? c. What is the proper tax treatment if Hassad rents the house for 25 weeks (175 days) and uses it 15 days for personal purposes?Igor owns a rental house and had to paint the living room, kitchen and bathroom after the most recent tenant moved out. The rooms had not been painted in the last five years and he worried he would not be able to rent it out to another tenant at the current fair market value if he didn’t repaint. The cost to repaint the three rooms was $1,500 ($1,000 labor and $500 paint). What amount, if any, can Igor deduct of this expense and on what form should it be listed?
- In January 2006, Mary Jane Bowers was reviewing her plans for the April 1 opening of a garden center in Lynchburg, Virginia. She had selected Lynchburg as the town for a new home, after deciding to leave the large, northern city where she had both worked for the past 10 years. Bowers had a degree in horticulture and had worked for a large chemical company in its agricultural herbicide division. Along with the decision to move, Bowersdecided to change her work status as well. She wanted to devote her working days to something she enjoyed and was passionate about. Thus, she decided to go into business for herself, starting a retail garden store selling plants, trees, and shrubs. Bowers accumulated information on upscale retail garden stores from a number of sources, talkedto suppliers, looked at potential locations, and established a banking relationship with the Campbell National Bank. She wanted to make sure that she had enough money to get thebusiness off to a good start. Mary Jane…In 2020, Regina moved across the country from the east coast to the west coast. She was moving because the advertising agency she worked for wanted her to relocate to work with a big new client the company had landed on the west coast. Her company reimbursed $7,500 of moving expenses (her total cost for the move), and her total wages for the year were $110,000 While living on the west coast, she began volunteering for a children's hospital doing public relations for their office. She estimated her time volunteering at the hospital during the year was worth $7,000. She also paid $350 in professional ducs to the American Association of Advertising Agencies the beginning of the year, which was rimbursed by her employer. Determine Regina AG for 2020. a. None of the above. b. $117,500 c. $110.150 d. $110,000 e. $117,150In May 2019, Regina graduated from the Naval Academy with a degree in engineering and was assigned to San Diego as a permanent duty station. In her move to San Diego, Regina incurred the following costs:$450 in gasoline.$250 for renting a truck from UPAYME rentals.$100 for a tow trailer for her car.$85 in food.$25 in double espressos from Starbucks.$300 for motel lodging on the way to San Diego.$405 for a previous plane trip to San Diego to look for an apartment.$175 in temporary storage costs for her collection of crystal figurines. Required: If the government reimburses her $900, how much, if any, may Regina take as a moving expense deduction on her 2019 tax return?