Question

Joan Frazier was just hired as an employee by SJR Restaurants, Inc., a Delaware Corporation domiciled in Colorado. Ms. Frazier maintains a residence in Orange County, California, so her children may attend the schools of her choice and so that her husband may be employed there as a leading plastic surgeon.

SJR has just opened three (3) restaurants in Utah, Nevada, and Idaho. SJR requires Ms. Frazier set up the general ledger accounting system at each restaurant. SJR estimates it will take Ms. Frazier 14 months of continuous, full time work (40 hours per week, 4 weeks per month) to set up the systems. SJR requires Ms. Frazier to rotate her time. That is, to spend time at each restaurant at least once a calendar quarter. Each restaurant has an office for the accounting function, although the offices are so small that Ms. Frazier does a majority of her work from hotel rooms near the restaurants.

Ms. Frazier reports back electronically to SJR. Ms. Frazier is never required to go to Colorado. SJR does not reimburse Ms. Frazier for her lodging, travel, or meal expenses.

May Ms. Frazier deduct lodging, travel, and meal expenses?

Note 1: Ignore limitations and phase outs and cut backs and whether the putative deductions might be above the line or below the line. Ignore Alternative Minimum Tax.

Note 2: This is your chance to show the research skills you've learned. You must cite the relevant code section(s), and at least three Supreme Court cases.

FYI - This is a tax research question. It has nothing to do with calculating meals or lodging expenses. The amounts for those items are irrelevant.

Answer 1

SOLUTION

Jo fraizer is an official worker procured by the business 'delaware organization' of SJR Restaurants. The organization anticipates that the worker should work for over multi year, 14 months-40 hours/week for 4 weeks every month which is a broad venture to set up the eatery frameworks. Since SJR simply opened 3 branches in UTAH, NEVADA and IDAHO which will require more endeavors at first, Mr. joe will require to give additional time there. Likewise, shes is approached to visit all these 3 recently opened branches in any event once in 3 months to catch up the bookkeeping capacity which id again a tedious activity. And furthermore when she is permitted to work from their specific workplaces, however because of absence of legitimate office space at works he can't work at the branch office and winds up working at the cabin/lodging for greater profitability and proficiency for which more costs are brought about. Presently the reality remains that the company doesn't repay for the stay at the inn/stop.

Jo fraizer is given a long multi month venture requiring different aptitudes and a great deal of time to execute his delegated errands, and the way that she works from the lodging is just to deal with most extreme proficiency and appropriate target conveyance. That is to help the organization and to almost certainly complete the work on time.

Likewise that he is restricted on time of 14 months and as yet thinking for the proficiency of the organization and give most extreme yield in the given time demonstrates that he wants to complete things on focused time. Thus, except if it is unmistakably referenced in the approach of not to incorporate any of those of the organization he should deduct voyaging, hotel and feast costs for what it's worth to help the organization and not for individual relaxation purposes. Furthermore, if not denied in the approach or not, he ought to be qualified for repayment without a doubt.