Question 1. Alfredo, a self-employed patent attorney, flew from his home in Chicago to Miami, had lunch alone at the airport, conducted business in the afternoon, and returned t

1. Alfredo, a self-employed patent attorney, flew from his home in Chicago to Miami, had lunch alone at the airport, conducted business in the afternoon, and returned to Chicago in the evening. His expenses were as follows:

What is Alfredo’s deductible expense for the trip?

2. Lily went from her office in Portland to Lisbon on business. While there, she spent part of the time on vacation. How much of the air fare of $5,000 can she deduct based on the following assumptions:

a. Lily was gone five days (i.e., three business and two personal).

b. Lily was gone five weeks (i.e., four business and one personal).

c. Lily was gone five weeks (i.e., three business and two personal).

3. Noah moved from Delaware to Arizona to accept a better job. He incurred the following unreimbursed moving expenses:

What is Noah’s moving expense deduction?

4. After graduating from college, Clint obtained employment in Omaha. In moving from his parents’ home in

Baltimore to Omaha, Clint incurred the following expenses:

a. How much may Clint deduct as moving expense?

b. Would any deduction be allowed if Clint claimed the standard deduction for the year of the move? Explain.

5. Arnold is employed as an assistant manager in the furniture division of a national chain of department stores. He is a recent college graduate with a degree in marketing. During 2014, he enrolls in the evening MBA program of a local university and incurs the following expenses: tuition, $4,200; books and computer supplies, $800; transportation expense to and from the university, $450; and meals while on campus, $400. Arnold is single and his annual AGI is $64,000. As to these expenses, what are Arnold’s:

a. Deductions forAGI?

b. Deductions fromAGI?

6. Cathy takes five key clients to a nightclub and incurs the following costs: $320 limousine rental, $460 cover charge, $920 drinks and dinner, and $200 tips. Several days after the function, Cathy mails each client a pen costing $25. To the cost must be added $4 for engraving of the client’s name. Assuming adequate substantiation and a business justification, what is Cathy’s deduction?

7. For the current football season, Tern Corporation pays $40,000 for a skybox (containing 12 seats) at Veterans Stadium for eight home games. Regular nonskybox seats at each game range from $120 to $150 a seat. In November, a Tern employee and ten clients use the skybox to attend a game. The event is preceded by a bona fide business discussion, and Tern spent $1,000 for food and drinks during the game. What is Tern’s deduction?

8. Brian makes gifts as follows:

Recipient Cost of Gift

Mr. Brown (a client) $27*

Mrs. Brown (Mr. Brown’s wife) 15

Ms. Smith (Brian’s receptionist) 30

Mr. Jones (Brian’s boss) 40

* Includes $2 for engraving

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