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Tax deductions: away from home expenses

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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 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.

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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 ...

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