Under the high-low method, the federal per diem amount given in the the text for
ID: 2441170 • Letter: U
Question
Under the high-low method, the federal per diem amount given in the the text for this tax yearfor a high-cost locality for travel in the United States is:
A.
$300 per day
B.
Some other amount
C.
$163 per day
D.
$251 per day
E.
$242 per day
Which of the following expenses incurred while the taxpayer is away from home "overnight" is not included as a travel expense?
A.
Lodging expenses
B.
Transportation expenses
C.
Laundry expenses
D.
Meal expenses
E.
Business gifts
Which of the following taxpayers is entitled to a travel expense deduction?
A.
An employee who travels between several business locations within the same city each day
B.
A bank employee who travels to a branch office for a couple of hours of work and decides to stay overnight to attend a play
C.
An employee, who worked in the Salt Lake City plant of a company, who is assigned to the Denver plant of the company for 4 years.
D.
An employee who resigns from his current job and accepts a new job in a city 500 miles away from his current residence
E.
A manager of a chain of department stores who works in the main store 3 weeks out of every month and visits distant branch locations on overnight trips during the remainder of the month
Which of the following taxpayers qualifies for a home office deduction?
A.
An accounting student who maintains a home office used exclusively to prepare tax returns
B.
A doctor who has a regular office downtown and a library at home to store medical journals
C.
A corporate president who uses his home office to entertain friends and customers
D.
A nurse who maintains a home office to pay bills and read nursing journals
E.
An attorney who is employed by a law firm and has a home office in which to read cases
A.
$300 per day
B.
Some other amount
C.
$163 per day
D.
$251 per day
E.
$242 per day
Explanation / Answer
1. Answer is option B Some of other amount (it is $284 per day)
2. Answer is option E Business gifts (rest expenses incurred while the taxpayer is away from home "overnight" are included as a travel expense)
3. Answer is option E A manager of a chain of department stores who works in the main store 3 weeks out of every month and visits distant branch locations on overnight trips during the remainder of the month
4. Answer is option A An accounting student who maintains a home office used exclusively to prepare tax returns (because his office is exclusively for his professional work).
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