Exam 9: Deductions: Employee and Self-Employed Related Expenses

Alexis (a CPA and JD) sold her public accounting practice in Des Moines and accepted a job with the Seattle office of a national accounting firm.Her moving expenses are not deductible because she has changed employment status (i.e., went from self-employed to employee).

Once set for a year, when might the IRS change the rate for the automatic mileage method?

In November 2012, Katie incurs unreimbursed moving expenses to accept a new job. Katie cannot deduct any of these expenses when she timely files her 2012 income tax return since she has not yet satisfied the 39-week time test.

In the current year, Bo accepted employment with a Kansas City law firm after graduating from law school.Her expenses for the year are listed below: Since Bo worked just part of the year, her salary was only $32,100.In terms of deductions from AGI, how much does Bo have?

Faith just graduated from college and she needs advice on the tax treatment of the costs she incurs in connection with her first job (a loan officer at a bank).Specifically, she wants to know about the following items:

Any pre-tax amount elected by an employee as a contribution to a § 401(k) plan that does not exceed the statutory limit is not includible in gross income in the year of deferral and is 100% vested.