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Tax deductions: away from home expenses

21. Mr. and Mrs. South's adjusted gross income was $85,000. During the year they incurred and paid the following:

Publications (unreimbursed and related to employment) - $500
Tax return preparation fee - 1,000
Professional dues - 1,200
Fees for will preparation (no tax advice) - 800
Life insurance premiums - 1,400

Assuming they can itemize, how much should the South's claim as miscellaneous itemized deductions (after limitations have been applied)?

a. $1,000
b. $1,800
c. $2,700
d. $3,500

22. Vincent is a university professor who accepts a visiting position at another university for six-months and obtains a leave of absence from his current employer. Vincent spends the following amounts each month at the new location:

Furnished apartment - $500
Meals - 300
Laundry and cleaning - 150

In addition, Vincent incurs flight expenses of $400 to travel to the new location to find an apartment. Vincent has AGI for the year of $40,000. Vincent's deductible travel expenses, after the 2% limitation, are

a. $400.
b. $4,400.
c. $5,200.
d. $5,300.

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Solution Preview

21. No deduction are allowed for either will preparation or life insurance premiums. Will preparation has to do with estate planning rather than current deductions. Life insurance ...

Solution Summary

In response to the multi-choice questions, the solution explains which travel expenses are deductible and why. It also provides explanations about why some of the miscellaneous deductions are not allowable.