Melissa, a business executive who lives and works in Cleveland, accepts a tempor

Question

Melissa, a business executive who lives and works in Cleveland, accepts a temporary out-of-town assignment in Atlanta for a period of ten months. Melissa leaves her husband and children in Cleveland and rents an apartment in Atlanta during the ten-month period. Melissa incurs the following expenses, none of which are reimbursed by her employer: EEB (Click the icon to view the expenses.) Read the requirements Requirement a. Which of the expenditures listed above (if any) are deductible by Melissa (before any limitations are applied)? First, designate which of the expenditures are potentially deductible Airfare to and from Atlanta Airfare for weekend trips to vist her family Apartment rent Meals in Atlanta Entertainment of customers Requirements Which of the expenditures listed above (if any) are deductible by Melissa (before any limitations are applied)? a. b. Are each of these expenditures classified as for AGI or from AGI deductions? c. If Melissa's AGI is $160,000, what is the amount of the deduction for the expenditures? Do the tax consequences change if Melissa's assignment is for a period of more than one year? Do the tax consequences in Parts a through c change if it was realistically expected that the work would be completed in ten months but after the ten-month period Melissa is asked to continue for seven more months and if an additional $9,000 of travel expenses are incurred during the extended period? d. e. Print Done

Explanation / Answer

As per publication 463 all the expenses viz airfare, rent, meals and entertainment of customers are deductible.

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