Kim works for a clothing manufacturer as a dress designer. During 2020, she travels to New York City to attend five days of fashion shows and then spends three days sightseeing. Her expenses are as follows: Airfare $1,300 Lodging (8 nights) 1,690 Meals (8 days) 1,560 Airport transportation 125 Assume lodging/meals are the same amount for the business and personal portion of the trip ($211 per day for lodging and $195 per day for meals). If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar. a. Determine Kim's business expenses, presuming no reimbursement. Airfare $ Lodging Meals Transportation Total $ What amount may she deduct on her tax return? $ b. Would the tax treatment of Kim's deduction differ if she was an independent contractor? The deductible expenses would be $______________ and the expenses would be classified as a deduction for AGI
Kim works for a clothing manufacturer as a dress designer. During 2020, she travels to New York City to attend five days of fashion shows and then spends three days sightseeing. Her expenses are as follows: Airfare $1,300 Lodging (8 nights) 1,690 Meals (8 days) 1,560 Airport transportation 125 Assume lodging/meals are the same amount for the business and personal portion of the trip ($211 per day for lodging and $195 per day for meals). If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar. a. Determine Kim's business expenses, presuming no reimbursement. Airfare $ Lodging Meals Transportation Total $ What amount may she deduct on her tax return? $ b. Would the tax treatment of Kim's deduction differ if she was an independent contractor? The deductible expenses would be $______________ and the expenses would be classified as a deduction for AGI
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kim works for a clothing manufacturer as a dress designer. During 2020, she travels to New York City to attend five days of fashion shows and then spends three days sightseeing. Her expenses are as follows:
|
Assume lodging/meals are the same amount for the business and personal portion of the trip ($211 per day for lodging and $195 per day for meals).
If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar.
a. Determine Kim's business expenses, presuming no reimbursement.
|
What amount may she deduct on her tax return?
$
b. Would the tax treatment of Kim's deduction differ if she was an independent contractor?
The deductible expenses would be $______________ and the expenses would be classified as a deduction for AGI .
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