Chapter 3: Business Income and Expenses, Part IPlease address the following:1. Robert, a new client of yours, is a self-employed caterer in Santa Fe, New Mexico. Robert drives his personal van when delivering catered meals to customers. You have asked him to provide the amount of businessmiles driven using his vehicle. You are planning on using the standard mileage method to calculate Robert's deduction for transportation costs. Robert has responded by saying, "Well, I don't really keep track of mymiles. I guess I drove around 3,000 miles last year for the business." Please let us know how you would respond to Robert.2. Your supervisor has asked you to research a potential tax deduction for a client, Nancy Fradette. Nancy is a seat-filler at a number of the award shows that are filmed in the greater Los Angeles area. Although typicallyseat-fillers are not compensated, Nancy is so good at the job that many of the events are willing to pay for her services. As a result, her level of seat-filling activity now rises to the level of a business, not just a hobby.In 2020, Nancy is hoping to take a trip to the National Award Show Association (NASA) Annual Conference being held in Koror, Palau, a small island country in the Pacific. Although the conference is specificallyfocused on the presentation of award shows, a large number of the producers of these shows attend each year. Nancy wanted to attend so she could understand the challenges an award show producer faces and thusbetter perform her seat-filler job. The conference is held in a remote location each year as award show producers generally prefer a high level of secrecy around the inner-workings of the shows, and the scuba-divingand weather are also pretty good. The costs to attend the conference are $1,200 for conference registration, $2,300 for air travel, $2,400 for lodging. All the meals are included in the cost of the registration and arevalued at $400. Please prepare a letter to Nancy that describes the issues that Nancy will face in trying to deduct the cost of this trip. Use IRS Publication 463 (available at www.irs.gov) to assist you.

In the case of Robert, there are two methods to use for standard transportation cost deduction. That…

Answered: Robert, a new client of yours, is a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bobby Reynolds, a new client of yours, is a self-employed caterer in Santa Fe, New Mexico. Bobby drives his personal van when delivering catered meals to customers. You have asked him to provide the amount of business miles driven using his vehicle. You are planning on using the standard mileage method to calculate Bobby’s deduction for transportation costs. Bobby has responded by saying, “Well, I don’t really keep track of my miles. I guess I drove around 3,000 miles last year for the business.” What would you say to Bobby? Please give a response as if you are a professional tax accountant.
Michelle operates several food trucks. Indicate the amount (if any) that she can deduct as an ordinary and necessary business deduction in each of the following situations. Note: Leave no answers blank. Enter zero if applicable. a. Michelle moves her food truck between various locations on a daily rotation. Last week, Michelle was stopped for speeding. She paid a fine of $160 for speeding, including $115 for legal advice in connection with the ticket. b. Michelle paid $785 to reserve a parking place for her food truck for the fall football season outside the local football stadium. Michelle also paid $130 for tickets to a game for her children. c. Michelle provided a candidate with free advertising painted on her truck during the candidate's campaign for city council. Michelle paid $640 to have the ad prepared and an additional $340 to have the ad removed from the truck after the candidate lost the election. d. Michelle realized a $1,235 loss when she sold one of her food trucks to her…
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R, a new client of yours, is a self employed catere. R drives his personal van when delivering catered meals to customers. You asked him to provide the amount of business miles driven using his vehicle. You are planning on using the standard mileage method to calculate R deduction for transportation costs. R responded by saying " well, I don't keep track of my miles. I guess I drove around 3000 miles last year for the business " What would you say to him?
Ali is a student at the University. He recently purchased a car for OMRS,000 to use it for going to the University. Ali also expects that other friends might ask for transportation from him. He expects a total monthly revenue of OMR60. He expects fuel cost to be OMR30 per month. One of Ali's friends is a taxi driver. He offered Ala to take him to University for a monthly fee of OMR10. Because he does not have to drive, Ali believes that he can perform online work that would earn him a monthly revenue of OMR10. What is the differential cost in this scenario? Select one: O a. OMR50 Ob.OMR1O OCOMR4O O d. OMR2O Oe. OMRBO

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