9. LO.2 In 2011, Emma purchased an automobile, which she uses for both business and personal purposes. Although Emma does not keep records as to operating expenses (e.g., gas, oil, and repairs), she can prove the percentage of business use and the miles driven each year. In March 2013, Emma seeks your advice as to what income tax benefit, if any, she can derive from the use of her automobile. What would you suggest?
15. LO.3 Rick is scheduled to go to London on business and would like to do some sight-seeing while there. A colleague advises him that to maximize his deductible expenses, he should plan the business and personal portions of the trip carefully to make effective use of weekends and holidays. What is meant by this advice?
27. LO.10 Comment on the deductibility of each of the following items:
a. Club dues for the Coronado Club. Taxpayer, a lawyer, uses the luncheon club exclusively for business.
b. Cost of dry cleaning uniforms (including alterations by a tailor). Taxpayer is the doorman at a New York City hotel.
c. Expenses incurred by taxpayer, a member of the Maine National Guard, to participate in a two-day training session conducted in New Jersey.
d. Union dues paid by a self-employed carpenter.
e. Cost of CPA exam review course paid by a self-employed accountant
f. Fee paid to a real estate appraiser to determine the value of land a taxpayer is donating to charity.
g. Contribution to an IRA sponsored by taxpayer's employer.
h. Cost of school supplies purchased by a high school teacher.
28. LO.2, 3 During the year, Olivia holds two jobs. After an eight-hour day at the first job, she works three hours at the second job. On Fridays of each week, she returns home for dinner before going to the second job. On the other days (Monday through Thursday), she goes directly from the first job to the second job, stopping along the way for a meal.
The mileage involved is as follows:
Home to first job 15
First job to second job 18
Home to second job 20
a. Assuming that Olivia works 48 weeks during the year, how much of her mileage is deductible?
b. Can Olivia deduct the dinners she purchased? Why or why not?