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

Answer 1

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).