Need it by Monday Different Assignment from different class (taxation class) 1. Jason purchased a jewelry box at a flea market for $20. He took the box to Antique Road show and discovered that the box was actually worth $5000. Does Jason realize any gross income? Ans: 2. ( 2 TO 3 PAGES) Need it by Monday ACC 328 Taxation Research Case Requirements: 1. Typewritten, double-spaced, 81/2" x 1 1" format (see attached) with no more than 1-2 pages of discussion and explanation in answer to the question. 2. Although you are free to discuss the assignment among you, only individual papers are acceptable. The College's policies concerning academic integrity will apply. 3. Citations must be made from the Internal Revenue Services ' Publications at irs. gov. 4. No late papers will be accepted. Don't get yourself into a crunch by leaving the assigunent to the last minute. Start now! TO: Nana Appiah, CPA FROM: Nana A. Appiah, CPA SUBJECt: TRANSPRTATION EXPENSES DATE: 11/11/20• Facts: Fran lives in a lower middle -class neighborhood in the Bronx. It costs her $3 for subway and bus fare every day to commute to her job. She works at the Plaza Hotel in Manhattan, where she is paid minimum wage to clean the hotels guests' rooms. Issue: May Fran deduct the subway and bus fare? Discussion: Internal Revenue Service Publication 463, Travel, Entertainment, Gift, and Car Expenses, page 14 states: "You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving your car between your home and your regular place of work. These costs are personal commuting expenses. You cannot deduct commuting expenses no matter how far your home is from your regular place of work. You cannot deduct commuting expenses even if you work during the commuting trip." Conclusion: Fran will not be allowed to deduct her subway and bus fare. Department Travel, Future of the What's New 2 Treasury Internal Revenue Entertainment, Reminder . . 2 Service Gift, and Car Introduction Chapter I. Travel . 2 . 3 Expenses Traveling Away From Home . Tax Home . Tax Home Different From . 3 . 3 Publication 463 cat. No. 11081L Contents Developments . 2 Family Home Temporary Assignment or Job What Travel Expenses Are For use in preparing Deductible? . Meals 201 5 Returns Travel in the United States Travel Outside the United States Luxury Water Travel Conventions Chapter 2. Entertainment . 10 Directly-Related Test . 10 Associated Test Exceptions to the 50% . 10 Il Limit What Entertainment Expenses 11 Are Deductible? What Entertainment Expenses 12 Are Not Deductible? 13 Get forms and other information faster and easier at: • IRS.gov (English) • IRS.gov/Korean 01) • IRS.gov/Spanish (Espahol) • IRS.gov/Russian (PyccHHVi) • IRS.qov/Chinese/ • IRS.qovNietnamese (TiéngViét) Chapter 3. Gifts 13 Chapter 4. Transportation . 14 Car Expenses . . 16 Standard Mileage Rate 16 Actual Car Expenses . 17 Leasing a Car . . 23 Disposition of a Car . 24 Chapter 5. Recordkeeping 25 How To Prove Expenses 25 What Are Adequate Records? . 25 What If I Have Incomplete Records? 26 Separating and Combining Expenses . 26 How Long To Keep Records and Receipts 27 Examples of Records 29 Chapter 6. How To Report 29 Where To Report . 29 Vehicle Provided by Your Employer 29 Reimbursements 30 Accountable Plans . 30 Nonaccountable Plans . . 33 Rules for Independent Contractors and Clients . 33 How To Use Per Diem Rate Tables . 34 The Two Substantiation Methods . . 34 Transition Rules . 34 Feb 12, 2016 the residence and another work location in the same trade or business, regardless of whether the work is temporary or permanent and regardless of the distance. Illustration of transportation expenses. fig: uce_E, earlier, illustrates the rules that apply for deducting transportation expenses when you have a regular or main job away from your home. You may want to refer to it when deciding whether you can deduct your transportation expenses. Temporary work location. If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance. If your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary unless there are facts and circumstances that would indicate otherwise. If your employment at a work location is realistically expected to last for more than 1 year or tf there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. tt will not be treated as temporary after the date you determine it will last more than 1 year. If the temporary work location is beyond the general area of your regular place of work and you stay ovemight, you are traveling away from home. You may have deductible travel expenses as discussed in chap-let-L. No regular place of work. If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area. Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered pan of that metropolitan area. You cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. These are nondeductible commuting expenses. Two places of work. If you work at two places in one day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. However, if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second. Transportation expenses you have in going between home and a pan-time job on a day off from your main job are commuting expenses. You cannot deduct them. Armed Forces reservists. A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work. You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. In this case, your transportation generally is a nondeductible commuting expense. However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can de• duct your transportation expenses. If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. These expenses are discussed in chapter 1. If you travel more than 100 mites away from home in connection with your performance of services as a member of the reserves, you may be able to deduct some of your reserve-related travel costs as an adjustment to gross income rather than as an itemized deduction. For more information, see Armed Forces Reservists Travelinq More Than 100 Miles From Home under Special Rules, in chapter 6. Commuting expenses. You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. These costs are personal commuting expenses. You cannot deduct commuting expenses no matter how far your home is from your regular place of work. You cannot deduct commuting expenses even if you work during the commuting trip. Example. You sometimes use your cell phone to make business calls while commuting to and from work. Sometimes business associates ride with you to and from work, and you have a business discussion in the car. These activities do not change the trip from personal to business. You cannot deduct your commuting expenses. Parking fees. Fees you pay to park your car at your place of business are nondeductible commuting expenses. You can, however, deduct business-related parking fees when visiting a customer or client. Advertising display on car. Putting display material that advertises your business on your car does not change the use of your car from personal use to business use. If you use this car for commuting or other personal uses, you still cannot deduct your expenses for those uses. Car pools. You cannot deduct the cost of using your car in a nonprofit car pool. Do not inctude payments you receive from the passengers in your income. These payments are considered reimbursements of your expenses. However, if you operate a car pool for a profit, you must include payments from passengers in your income. You can then deduct your car expenses (using the rules in this publication). Hauling tools or Instruments. Hauling tools or instruments in your car while commuting to and from work does not make your car expenses deductible. However, you can deduct any additional costs you have for hauling tools or instruments (such as for renting a trailer you tow with your car). Union members' trips from a union hall. If you get your work assignments at a union hall and then go to your place of work, the costs of getting from the union hall to your place of work are nondeductible commuting expenses. AIthough you need the union to get your work assignments, you are employed where you work, not where the union hall is located. Office in the home. If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. (See Publication 587, Business Use of Your Home, for information on determining if your home office qualifies as a principal place of business.) Examples of deductible transportation. The fotlowing examples show when you can deduct transportation expenses based on the location of your work and your home. Example 1. You regularly work in an office in the city where you live. Your employer sends you to a I-week training session at a different office in the same city. You travel directly from your home to the training location and return each day. You can deduct the cost of your daily round-trip transportation between your home and the training location. Example 2. Your principal place of business is in your home. You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customers place of business. Example 3. You have no regular office, and you do not have an office in your home. In this case, the location of your first business contact inside the metropolitan area is considered your office. Transponation expenses between your home and this first contact are nondeductible commuting expenses. Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. White you cannot deduct the costs of these trips, you can deduct the costs of going from one client or customer to another. Chapter 4 Transportation Page 15