WEEK 7 RESEARCH PROJECT ACCT 429
WEEK 7 RESEARCH PROJECT
(SET #1)
DeVry University
Acct 429-Professor Woodard
Rosa Leon
TAX FILE MEMORANDUM-1st Assignment
FROM: Rosa Leon
SUBJECT: Tracy Meal Deduction Question
Today I talked to Tracey taxpayer with respect to her question regarding the meal deductions. Tracey is a sales representative for a national pharmaceutical company. FACTS: She has a rather large sales territory, and she makes her rounds to her customers using acompany-owned car over a 16- to 19-hour period of time. During these one-daybusiness trips, Tracey will pull over in a suitable location (such as a park or a reststop) and take a short nap in the backseat of her automobile.
ISSUE: Can Tracey be entitled to deduct the cost of meals purchased during the trip at issue?
CONCLUSION: Tracey will not be able to deduct her meal expenses
ANALYSIS: IRS has agreed to follow a “sleep or rest” rule established by the US Court of Appeals (not specifically mentioned in under 162 (a)(2)) to determine if a taxpayer is “away from home” for deductibility of meals and lodging. If the nature of the taxpayer's employment is such that when away from home, during released time, it is reasonable for him to need and to obtain sleep or rest in order to meet the exigencies of his employment or business demands of his employment, his expenditures including incidental expenses, such as tips) for the purpose of obtaining sleep or rest are deductible traveling expenses under section 162(a)(2) of the 1954 Code.
WEEK 7 RESEARCH PROJECT
(SET #2)
DeVry University
Acct 429-Professor Woodard
Rosa Leon
TAX FILE MEMORANDUM
FROM: Rosa Leon
SUBJECT: Mark Meal Deduction Question
Today I talked to Mark taxpayer with respect to her question regarding the meal deductions.
FACTS: Mark captains a ferryboat. This ferryboat carries tourists on roundtrips from Seattle to Victoria and back, each trip of which lasts from 15 to 17 hours and provides for a
6- to
(SET #1)
DeVry University
Acct 429-Professor Woodard
Rosa Leon
TAX FILE MEMORANDUM-1st Assignment
FROM: Rosa Leon
SUBJECT: Tracy Meal Deduction Question
Today I talked to Tracey taxpayer with respect to her question regarding the meal deductions. Tracey is a sales representative for a national pharmaceutical company. FACTS: She has a rather large sales territory, and she makes her rounds to her customers using acompany-owned car over a 16- to 19-hour period of time. During these one-daybusiness trips, Tracey will pull over in a suitable location (such as a park or a reststop) and take a short nap in the backseat of her automobile.
ISSUE: Can Tracey be entitled to deduct the cost of meals purchased during the trip at issue?
CONCLUSION: Tracey will not be able to deduct her meal expenses
ANALYSIS: IRS has agreed to follow a “sleep or rest” rule established by the US Court of Appeals (not specifically mentioned in under 162 (a)(2)) to determine if a taxpayer is “away from home” for deductibility of meals and lodging. If the nature of the taxpayer's employment is such that when away from home, during released time, it is reasonable for him to need and to obtain sleep or rest in order to meet the exigencies of his employment or business demands of his employment, his expenditures including incidental expenses, such as tips) for the purpose of obtaining sleep or rest are deductible traveling expenses under section 162(a)(2) of the 1954 Code.
WEEK 7 RESEARCH PROJECT
(SET #2)
DeVry University
Acct 429-Professor Woodard
Rosa Leon
TAX FILE MEMORANDUM
FROM: Rosa Leon
SUBJECT: Mark Meal Deduction Question
Today I talked to Mark taxpayer with respect to her question regarding the meal deductions.
FACTS: Mark captains a ferryboat. This ferryboat carries tourists on roundtrips from Seattle to Victoria and back, each trip of which lasts from 15 to 17 hours and provides for a
6- to