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South-Western Federal Taxation 2013 Comprehensive Hoffman 36th Edition Solutions Manual
CHAPTER 9
DEDUCTIONS: EMPLOYEE AND SELF-EMPLOYED-RELATED EXPENSES
SOLUTIONS TO PROBLEM MATERIALS
Status: Q/P
Question/ Learning Present in Prior
Problem Objective Topic Edition Edition
1 LO 1, 9 Schedule C of Form 1040 and Form 2106: New

when appropriate
2 LO 1, 9 Employee status: possible deductions for Unchanged 2
AGI
3 LO 1 Employee versus independent contractor New
status: criteria to be considered
4 LO 1 Employer-employee relationship: key factors Unchanged 4
5 LO 1, 11 Employee versus independent contractor: New
clarification of status
6 LO 1 Statutory employee: characteristics New
7 LO 2 Commuting expense and office in the home New
8 LO 2 Filing of amended return to choose Unchanged 7
method of deducting auto expenses
9 LO 2 Determining auto expense: finance charges New
10 LO 2, 3 Travel and transportation expenses Unchanged 8
distinguished
11 LO 3 Away-from-home status Unchanged 9
12 LO 3 Multiple jobs and treatment of related Unchanged 10
expenses
13 LO 3 Convention: spouse accompaniment Unchanged 11
14 LO 3 Foreign travel: planning for personal portion Unchanged 12
15 LO 4 Moving expenses: satisfaction of time test Modified 13
16 LO 5, 10 MBA program: when deductible Unchanged 15
17 LO 5, 10 Deduction for qualified tuition expense: Modified 16
relevant rules
18 LO 6 Application and non application of the Unchanged 18
cutback rule
19 LO 6 Lavish and extravagant entertainment Unchanged 19
expenses
20 LO 7 Office in the home expenses: relevant tax Modified 20
rules
9-1
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9-2 2013 Comprehensive Volume/Solutions Manual
Status: Q/P
21 LO 4, 7 Tax treatment of first job expenses Unchanged 21

22 LO 8 Retirement plans: traditional and Roth IRAs, Unchanged 22
Keogh (H.R. 10) plans compared as to
tax consequences
23 LO 8 Contribution amount for traditional and Roth Unchanged 23
IRAs
24 LO 9 Reimbursed expenses Unchanged 24
25 LO 3, 9, Avoiding cutback adjustment New
10, 11
26 LO 4, 11 Moving expenses: retirement situations Unchanged 26
27 LO 10 Examples of miscellaneous itemized Modified 27
deductions subject to the 2% floor
28 LO 2, 3 Commuting expense and second job New
29 LO 2, 5 Commuting expense and exceptions New
30 LO 2 Commuting expense and transportation New
between work stations
31 LO 2 Determining auto expense: actual cost and New
automatic mileage methods
*32 LO 2 Depreciation and automatic mileage method Unchanged 31
33 LO 3 Travel in temporary assignment Modified 32
*34 LO 3, 6 Business convention Unchanged 33
35 LO 1, 3, 6 Domestic travel: business/pleasure combined New
36 LO 3 Foreign travel: determining business/ Unchanged 35
pleasure portions
37 LO 3 Foreign travel: determining business/ Unchanged 36
pleasure portions
*38 LO 4 Moving expenses New
39 LO 4, 7 Moving expenses: qualified and nonqualified Unchanged 38
40 LO 4 Moving expenses: time test illustrated Unchanged 39
*41 LO 5 Education expenses New
42 LO 5 Qualified tuition and related expenses Modified 41
under § 222
43 LO 6, 9 Business meals and exception to usual Unchanged 43
cutback adjustment; other employee
expenses
*44 LO 6 Business entertainment Unchanged 44
45 LO 6 Business gift Unchanged 45
*46 LO 7 Home office expenses Modified 46
47 LO 7 Educator expense: classroom supplies New
48 LO 8 Section 401(k) plan Updated 48
49 LO 8 SIMPLE § 401(k) plan New
50 LO 8 Keogh plan Unchanged 50
51 LO 8 IRA: spousal and active participant Updated 51
52 LO 8 Roth IRA: distributions New
*53 LO 8 Traditional IRA versus Roth IRA; CESA New
54 LO 3, 6, 9 Partially reimbursed expenses Modified 54
*55 LO 3, 6, 9 Partially reimbursed expenses Unchanged 55
*56 LO 6, 9, 10 Partially reimbursed expenses Unchanged 56
Deductions: Employee and Self-Employed-Related Expenses 9-3
Status: Q/P
*57 LO 5, 7, 10 Miscellaneous employee expenses Unchanged 57

58 LO 1, 2, 4, Classification of expenses: DFOR, DFROM, Modified 58
5, 7, 10 nondeductible
*59 Cumulative Modified 59
*60 Cumulative New
*The solution to this problem is available on a transparency master.
Status Q/P
Research Present in Prior
Problem Topic Edition Edition
1 Employee versus independent contractor status: Unchanged 1

delivery truck drivers
2 Meal expenses Unchanged 2
3 Internet activity Unchanged 3
CHECK FIGURES
28.a. 4,900 miles. 49. $2,800; vest immediately

28.b. $0. 50. $24,000.
29. $288.60. 51.a. $10,000 ($5,000 + $5,000).
30. $5,238. 51.b. $10,000 ($5,000 + $5,000).
31.a. $7,090. 51.c. $5,000.
31.b. $8,110. 52. $199,000.
32.a. $31,640. 53.a. $5,000 contribution each.
32.b. $31,512. 53.b. $0 deductible.
33.a. $490 (subject to the cutback 53.c. $4,000 contribution each.
adjustment). 53.d. $0 deductible.
33.b. $490. 53.e. $6,000 ($2,000 + $2,000 + $2,000).
34. $2,700. 54. $14,000 ($8,400 + $5,600) deduction
35.a. $3,320. for AGI; $2,620 deduction from AGI.
35.b. DFOR. 55.a. $12,000 for AGI; $11,100 deduction
36. 100% business. from AGI.
37. 13 days. 55.b. $12,000 for AGI; $14,340 deduction
38. $5,845. from AGI.
39. $8,032. 55.c. $12,000 for AGI; $2,340 deduction
41.a. $4,000. from AGI.
41.b. $8,326. 55.d. Part b.
42.a. $2,000. 56. AGI $58,600; deduction from AGI
42.b. $2,000. $7,578.
42.c. $0. 57. Deductions from AGI $23,915.
43. $20,400. 58.a. DFOR.
44.a. $2,500. 58.b. DFROM.
44.b. $1,800. 58.c. DFROM.
44.c. $450. 58.d. ND.
45. $94. 58.e. ND.
46.a. $3,160. 58.f. DFROM.
46.b. $7,160. 58.g. ND.
46.c. $160. 58.h. DFOR.
47.a. $650 DFROM. 58.i. DFROM.
47.b. $250 DFOR; $650 nondeductible. 58.j. ND.
48.a. $17,000. 59. Tax refund of $786 for 2011.
48.b. Tax savings of $5,610. 60. Tax due of $811 for 2012.
48.c. $17,000.
DISCUSSION QUESTIONS
1. For 2011, Lucy was an employee and Ethan was self-employed. For 2012, however, they
were both self-employed. Lucy either got laid off or quit her job after 2011. pp. 9-2 and 9-3
2. In large part, the conclusion is correct since most employment-related expenses are itemized
deductions. However, some expenses (e.g., qualified moving and qualified tuition) are
deductions for AGI and can be deducted even if the standard deduction is claimed. pp. 9-13
and 9-17
3. a. Independent contractor.
b. Employee.
c. Employee.
d. Independent contractor.
e. Employee.
f. Independent contractor.
g. Employee.
h. Independent contractor. An employee would receive a Form W-2.
p. 9-3
4. Each stylist should pay a set rental for the use of the facility. Except for controlling the hours
when the salon will be open, Bernard should allow each stylist to determine his or her own
working hours. Each stylist should handle customer appointment and billing functions. To
the extent feasible, stylists should provide their own tools and supplies. Preferably, each
stylist should have a separate telephone. Except in the interest of public health or safety,
Bernard should exercise no control over the clientele of his stylists. p. 9-3
5. a. Madison could be upset for a number of reasons. First, she has to pay self-
employment tax which is twice the amount of an employee’s share of Social Security.
Second, no income tax has been withheld from her wages. Lastly, she is not entitled
to any of the fringe benefits Knot offers to its employees.
b. Yes, Madison can file a Form SS–8 to have the IRS determine her employment status.
If the IRS decides against her, Madison can appeal the ruling to the U.S. Tax Court.
pp. 9-3 and 9-4
6. Statutory employees are treated as common law employees for employment tax purposes.
However, their wages are not subject to income tax withholding. Like independent
contractors, unreimbursed work-related expenses are deductions for AGI—itemization is not
required and the 2%-of-AGI limitation does not apply. p. 9-4
7. Because Milton’s principal place of business is his home, he will have no commuting
expenses. Example 9
8. From the facts given, it appears that Emma has never claimed any deduction for the business
use of the auto. As she has already filed for year 2010, an amended return claiming the
deduction is appropriate. Due to an absence of records, Emma cannot use the actual cost
method of determining the deduction. Consequently, the automatic mileage method should
be chosen. Emma can prove the miles driven and the percentage of business use. p. 9-6
9. Interest on a car loan is not deductible if Anthony is an employee. If, however, Anthony is
self-employed, the interest can be claimed as a business expense. (Note: The answer would
change if the car purchase was financed with the use of a home equity loan—see Chapter 10.)
p. 9-7
10. Travel is broader in scope than transportation. Not only does it include transportation but
other expenses as well (e.g., meals, lodging, entertainment, valet service). To be in travel
status, however, the taxpayer must satisfy the away-from-home requirement. p. 9-8
11. a. Lance was not away from home for tax purposes. By itself, a one-day business trip
will not suffice. The trip must require rest, sleep, or a relief-from-work period.
b. Non-transportation expenses (e.g., meals) during the trip will not be deductible.
p. 9-8
12. The main issue to be resolved is the location of Dr. Werner’s tax home. Presuming his salary
to be more than modest, the tax home probably is the situs of Pelican University. Thus, Dr.
Werner is in travel status when he conducts continuing education programs or testifies while
out of town. Example 15
13. Bill’s expenses (i.e., transportation, 50% of meals, lodging, registration fee) are definitely
deductible. Probabilities are high that this is also the case with Jean. As a paralegal working
in the same field as Bill, she should benefit equally with Bill from the material covered. Of
course, this assumes that she attends the sessions and the subjects covered are relevant to her
usual job assignments. Examples 17 and 19
14. Travel days count as business days. The weekend counts as business days if the prior Friday
and subsequent Monday are business days. The same holds true for a legal holiday. For
personal days, Rick must stay within one of the two exceptions (i.e., trip lasts seven days or
less or less than 25% of the time was for personal purposes) or his transportation expenses
must be allocated between business (deductible) and personal (nondeductible). Thus, failure
to satisfy one of these exceptions causes a portion of the airfare to be nondeductible. By
utilizing these guidelines, Rick can enhance his leisure time while maximizing his deductions.
p. 9-11
15. a. To meet the time test, an employee must be employed on a full-time basis at the new
location for 39 weeks (78 weeks for self-employed) in the 12-month period (two
years for self-employed) following the move.
b. The time test is disregarded if the taxpayer dies, becomes disabled, or is discharged
(other than for willful misconduct) or transferred by the new employer. Also, an
exception applies for expatriates to move back to the U.S. to retire.
c. The taxpayer can claim the moving expense deduction in the year the expenses are
incurred (i.e., the year of the move). If the test is not met, report the deduction as
income in the following year or file an amended return for the prior year that does not
claim the deduction. Alternatively, do not claim the deduction until the time test is
met. Then, file an amended return for the year of the move.
p. 9-12
16. a. The cost of obtaining an MBA degree for someone who is employed in a business
position normally is a deductible education expense. Only in limited situations where
it might qualify the taxpayer in a new trade or business might the deduction be
disallowed. See Tax in the News on p. 9-16.
b. Except for the tuition portion (covered by § 222), Jamie must itemize to claim the
deduction. Also, it will be subject to the 2%-of-AGI limitation. p. 9-38
17. a. Because § 222 results in a deduction for AGI, whether a taxpayer claims the standard
deduction (or itemizes) makes no difference.
b. When required as a condition for enrollment, a student activity fee can be deducted
under § 222.
c. The 2%-of-AGI limitation applies only to certain itemized deductions. Since § 222
allows a deduction for AGI, the 2%-of-AGI limitation is not applicable.
d. No deduction is allowed since married taxpayers must file a joint return.
e. A deduction is allowed for tuition payments on behalf of dependents.

f. The deduction allowed is reduced to $2,000 (from $4,000).
g. No deduction is allowed.
h. A deduction is allowed as there is no prohibition against acquiring a new skill.
pp. 9-16 and 9-17
18. a. Neither is subject to the cutback adjustment. The award is compensation to the
employee and is fully deductible by the employer. Example 34
b. No one is subject to the cutback adjustment. The subsidized eating facility provision
represents one of the exceptions to the cutback adjustment rule. Example 35
c. Employer paid recreational activities are not subject to the cutback adjustment.
p. 9-21
d. De minimis fringe benefits are not subject to the cutback adjustment. p. 9-21
e. Instead of the usual 50%, the cutback adjustment is only 20%. p. 9-20
f. The cutback adjustment applies. p. 9-20
g. The cutback adjustment does not apply to business gifts. However, gifts are limited as
to deductibility to a $25 amount. p. 9-23
h. The cutback adjustment does apply to the cost of the tickets. Example 40
19. Since the tickets were purchased at the last minute, a premium was probably paid. Only the
cost of regular tickets (as measured by their face value) is deductible. Any such deduction is
subject to the 50% cutback rule.
If the entertainment is of the ‘‘associated with’’ variety, attendance at the game must be
preceded or followed by a bona fide business discussion. Example 40
20. a. The exclusive use requirement means that the office must be used solely for business
purposes. However, an exception exists for licensed day care businesses.
b. Direct expenses benefit only the business part of the home and are deducted in full.
Indirect expenses are for maintaining and operating the home and must be allocated
between business and personal use.
c. Employees can claim a deduction only if the office in the home is for the convenience
of the employer. If justified, the deduction is from AGI and will be subject to the 2%-
of-AGI limitation. Self-employed taxpayers classify the deduction as for AGI and are
not subject to the 2% limitation.
d. If the residence is owned, an allocable portion of depreciation is allowed. If rented, an

allocable portion of the rent can be claimed.
e. The furnishings of the office are handled separately and are either expensed under
§ 179 or depreciated in accordance with the rules applicable to 5- or 7-year property
(see Chapter 8).
f. The excess is carried over to the next year.
pp. 9-23 to 9-25

21. Because this seems to be Trent’s first job, his job search expenses would not qualify for
deduction. His moving expenses, however, should qualify as deductions for AGI. In this
regard, the move covers Florida to Dallas (rather than Purdue to Dallas) because college
attendance normally does not establish residency. p. 9-13 and Example 46
22. a. Both types of plans allow a deduction for the amount contributed to the plan. Any
income earned by the plan is not taxed. However, full taxation (i.e., both
contributions and accumulated income) occurs when distributions take place. Keogh
(H.R. 10) plans are limited to self-employed participants.
b. Contributions to Roth IRAs are made with after-tax dollars. Unlike traditional
deductible IRAs, therefore, no deduction is allowed for any contributions to the plan.
Distributions from a Roth IRA are nontaxable, while those from traditional IRAs are
taxed in full.
p. 9-27
23. Joey, who is single, is eligible to make a $5,000 deductible contribution to a traditional IRA
because he is not an active participant in a qualified plan. Alternatively, he is eligible to make
a $4,333 ($5,000 – $667) contribution ($2,000/$15,000 × $5,000 = $667) to a Roth IRA. The
phaseout for the contribution to a Roth does not start until AGI of $110,000 and the phaseout
range is $15,000 in this case. pp. 9-28 to 9-30
24. a. The reimbursements and expenses are omitted from the return.
b. No reporting is required. Provided the other substantiation requirements are met, the
amount of the expenses is deemed substantiated at the Federal per diem rate.
c. All reimbursements are reported as additional wages (gross income) and the expenses
(except moving) are deductible from AGI subject to the 2% of AGI floor. Both Form
2106-EZ (Unreimbursed Employee Expenses) and Schedule A are used. If, however,
the employee makes use of the standard deduction, he or she is in the unfortunate
position of having to report the reimbursements in gross income with no deduction
for the expenses.
pp. 9-35 to 9-37
25. It would be unwise for Ava to choose the $53,000 option due to the tax consequences
involved. This option makes her subject to the 50% cutback adjustment for business meals
and entertainment. But even the portion of these expenses allowable as deductions may not
benefit Ava unless she is in a position to itemize her deductions (i.e., forgo the standard
deduction). Furthermore, the expenses are subject to the 2%-of-AGI floor.
If on the other hand, Ava selects the $39,000 option, Kite Corporation must suffer the 50%
cutback adjustment.
pp. 9-20 and 9-38
26. a. No deduction is allowed unless Ralph obtains a new job and meets the 39 or 78 weeks
requirement.
b. Expatriates are exempt from the 39 or 78 weeks requirement.
c. The expatriate needs no advice as he has no problem. As to the physician, obtain full-
time employment for 39 weeks in New Mexico. The new job need not be comparable
but must be full-time.
See Global Tax Issues on p. 9-14 and Example 64.
27. a. A deduction is allowed as losses do not exceed gambling gains. p. 9-38

b. Club dues are not deductible unless they involve a club whose primary purpose is
public service and community volunteerism. Such does not appear to be the case with
the Coronado Club. p. 9-22
c. A deduction should be available since this involves special clothing that is required as
a condition of employment and is not adaptable for regular wear. p. 9-26
d. If the trip is more than 100 miles from home and includes an overnight stay, a
deduction for AGI is allowed. The deduction is limited to the maximum Federal per
diem rate applicable to the geographical area involved. Tax in the News on p. 9-38
e. A deduction should be allowed because the taxpayer is ascertaining the amount of
casualty loss that can be claimed. p. 9-38
f. Deductible under § 212 (determination of a tax). p. 9-38
g. Not deductible because the obtaining of a basic skill is involved. p. 9-15
h. A deduction for AGI (up to $250) and any excess is an itemized deduction.
Example 47
PROBLEMS
28. a. 49 work weeks × 5 days = 245 days × 20 miles = 4,900 miles. The deduction allowed
is determined by the distance between the two jobs. The fact that Kristen might return
home before going to the second job is immaterial. Example 5
b. Since Kristen is not in travel status or business entertainment is not involved, the cost
of meals is a nondeductible personal expense. p. 9-8
29. $288.60. The direct trip from home to the audit client and the transportation from home to the
university qualify. The commute from home to office is nondeductible. Thus, 400 miles (10
miles × 2 × 20) plus 120 miles (15 miles × 2 × 4) = 520 miles. Thus 520 miles × $0.555
(automatic mileage note for 2012) = $288.60. Examples 4, 7, and 30
30. $5,238. 242 days × [(12 miles + 14 miles + 13 miles) × $0.555 (automatic mileage rate for
2012)]. Example 6
31. a. $7,090. $140 + $200 + [90%($1,300 + $180 + $210 + $160 + $2,850 + $2,800)].
Even though associated with business use, the fines of $330 are not deductible.
b. $8,110 . [14,000 miles × $0.555 (automatic mileage rate for 2012) + $140 + $200].
pp. 9-6 and 9-7
32. a. Rex’s adjusted basis is determined as follows:
Cost of automobile $40,000

Less depreciation (under automatic mileage method):
2009 (8,000 miles × 80% × 21 cents) (1,344)
2010 (19,000 miles × 80% × 23 cents) (3,496)
2011 (20,000 miles × 80% × 22 cents) (3,520)
Adjusted basis of auto on 1/1/12 $31,640
Example 10
b. Cost of automobile $40,000

Less depreciation (allowed under actual operating cost
method—see below*) (8,488)
Adjusted basis of auto on 1/1/12 $31,512
*Depreciation allowed is the lesser of the table amount (Table 8-1 on p. 8-32) or the
recovery limitation.
Depreciation
Year Table Amount Recovery Limitation* Allowed
2009 $40,000 × 20% × 80% = $6,400 $2,960 × 80% = $2,368 $2,368
2010 $40,000 × 32% × 80% = $10,240 $4,800 × 80% = $3,840 3,840
2011 $40,000 × 19.2% × 80% = $6,144 $2,850 × 80% = $2,280 2,280
Total depreciation allowed $8,488
Example 25 in Chapter 8
33. a. Olivia’s assignment is temporary (not indefinite), so her tax home has not changed.
While in Jackson, therefore, she is in travel status. The deductible portion of her
weekend expenses is limited to $490, the amount she would have spent had she not
gone home.
b. The answer will not change and remains at $490 but for a different reason. A
deduction is always limited to the amount actually spent.
Example 12
34. Although they may be very useful to their family, Mrs. Spencer’s activities do not constitute
a trade or business. Consequently, her expenses at the conference are not deductible.
Bret’s deductible expenses are as follows:
Airfare (one ticket) $1,000

Lodging 750
Meals ($100 ×3 days) $300
Less: Cutback adjustment (150) 150
Registration fee ($620 – $120) 500
Car rental 300
Total $2,700
Examples 16, 17, and 19
35. a. $3,320, determined as follows:

Air fare $1,600
Lodging (4 nights) 1,200
Meals (4 days)—50% × $800 400
Transportation 120
Total $3,320
No allocation of the air fare is necessary as the trip was within the U.S. The business
portion of the meals ($800) is subject to the cutback adjustment.
b. The amount allowed is the same except its classification changes to a deduction for
AGI.
Example 22
36. a. Justin’s trip is treated as being 100% for business. Weekends and holidays are
business days when preceded and followed by business days. Foreign travel days are
business days and (though not mentioned in the text) this should include days when
travel is not possible (e.g., equipment failure, weather delays).
b. Yes, as this causes Saturday, Sunday, and Monday to be nonbusiness days.
c. Under the assumptions in part a., all of the airfare would be deductible. This is also
the case regarding part b. because of the 7-days-or-less exception. Under the
exception, the day of departure is not counted. Consequently, Justin’s trip lasted from
Friday to Thursday, or seven days.
p. 9-11 and Footnote 18
37. a. Thirteen days. Since travel days count as business, and weekends count as business when
preceding and succeeding days are business days, all of her absence is regarded as
business.
b. If Monica does not satisfy the 7-days or less-than-25% tests, then part of her
transportation cost is not deductible.
c. Monica cannot satisfy the 7-days test because she was away from home for more than
7 days. Under the less-than-25% test and not counting partial days, she could have
vacationed for three more days assuming the days did not interfere with the preceding
and succeeding days provision.
p. 9-11
38. Qualifying moving expenses, which are a deduction for AGI, include the following:
Lodging during move $ 540
Moving van charge 4,500
Mileage for personal autos (3,500 miles × $0.23) 805
Total deduction $5,845
It does not matter that Caden goes from employee to self-employment status. Nonqualifying
moving expenses include the loss on sale of residence ($9,000) and the meals during the
move ($410). pp. 9-13 and 9-14
39. The job-search expenses relate to the same trade or business that Anthony was in and are,
therefore, deductible. It does not matter that no job resulted from the expenditure. Since they
relate to his employment as an employee, the $6,200 should be classified as a deduction from
AGI and would be subject to the 2%-of-AGI limitation. The moving expenses are deductions
for AGI and consist of the following:
Packing and moving expenses $7,100
Lodging 380
Mileage (2,400 miles × $0.23) 552
$8,032
Nonqualifying expenses include the breaking-lease penalty ($2,800), club membership
forfeiture ($2,200), and meals during move ($360) and are nondeductible. pp. 9-13, 9-14, and
9-26
40. If the time test (39 weeks in this case) is not met, the moving expense deduction is not
available. However, the deduction can still be claimed before the time test is met. If so, and
the test is not met, the taxpayer can either increase his income in the following year by the
deduction claimed or file an amended return for the year of the move. Thus, if Wayne must
recapture, he can either add $14,000 to his income for 2012 or file an amended return for
2011 deleting the deduction claimed. However, certain exceptions exist that exonerate a
taxpayer from the time test (and the need to recapture).
a. No recapture necessary.
b. No recapture necessary.
c. Recapture necessary.
d. Recapture necessary.
p. 9-13
41. a. At most, $4,000 of the tuition could be a deduction for AGI. This assumes that the
AGI limitations of § 222 are not exceeded ($65,000 for an unmarried return and
$130,000 for a joint return). As Marlo spent $6,400 on tuition, the § 222 deduction
for AGI is limited to $4,000.
b. Presuming $4,000 is claimed under § 222 (see part a. above), the deduction from AGI
is as follows:
Tuition ($6,400 – $4,000) $2,400
Books and course materials 1,400
Lodging 1,600
Meals ($2,400 × 50% cutback adjustment) 1,200
Laundry and dry cleaning 300
Campus parking 260
Auto mileage (2,100 miles × $0.555) 1,166
Total deduction from AGI $8,326
Examples 30 and 31
42. a. $2,000. The education does not have to be job related. However, note the MAGI
limitation.
b. $2,000. A second category of MAGI (more than $65,000 and up to $80,000).
c. None since § 222 does not apply to married persons who file separately.
d. No deduction is allowed for a taxpayer who is claimed as a dependent by another.

Eric’s parents could claim a deduction had they made the payment.
e. None as to a. and c. as both involve acquiring a new trade or business. As to b., the
$100 not allowed for tuition plus the $300 for books.
pp. 9-17 and 9-18
43. Dexter must include the travel allowance of $20,400 ($1,700 × 12 months) in his gross
income. All of his expenses are deductible as miscellaneous itemized deductions subject to
the 2%-of-AGI floor. His meals, however, are subject to a cutback adjustment of 20% as
Dexter’s occupation is regulated by the U.S. Department of Transportation.
Thus, Dexter can deduct the following: $6,400 (meals) + $11,000 (lodging) + $600
(transportation) + $1,100 (uniforms) + $300 (dry cleaning) + $1,000 (annual physical) =
$20,400. p. 9-20
44. a. Snipe Associates may deduct the following amounts:
Cost of seats ($200 × 20) $4,000

Food and beverages 1,000
Total entertainment expenses $5,000
Less: 50% cutback adjustment (2,500)
Total deduction $2,500
b. If the clients are not accompanied by a representative of Godwit, the food and
beverage portion of the entertainment is not deductible. The tickets, however, can be
claimed either as business gifts or as business entertainment. Since the gift option
allows only $450 (18 × $25), the entertainment choice of $1,800 [(18 × $200) × 50%]
should be chosen.
c. Without a bona fide business discussion either prior to or after the event, there is no
entertainment option. Sporting events must be considered as “associated with”
entertainment and such events require a business promotion—contrast the “quiet
business meal” where distractions are not prevalent. Under these conditions, therefore,
the business gift of $450 is the only available deduction.
p. 9-22 and Example 40
45. $94 ($25 + $28 + $41). No deduction is allowed for Darryl’s wife as the maximum gift
allowed has already been used for Darryl. The gift to Darryl is $25 (maximum amount) + $3
(gift wrapping), or $28. No deduction is allowed for the gift to Veronica as she is Paul’s boss.
The lunch with Sarah is deductible subject to the cutback adjustment. p. 9-23
46. a. The office in the home expense of $3,160 is determined below:

Real property taxes (20% × $3,600) $ 720
Interest on home mortgage (20% × $3,800) 760
Operating expenses on home (20% × $900) 180
Allocated depreciation on home 1,500
Total $3,160
Because Melanie’s consulting business yields a profit of $8,840 [$17,000 (income) –

$3,160 (office in the home) – $5,000 (related expenses)], all office in the home
expenses are allowed. Because Melanie is self-employed as to her consulting activity,
the expenses are deductions for AGI, reported on Schedule C. The real property taxes
and interest not claimed, $2,880 ($3,600 – $720) and $3,040 ($3,800 – $760), qualify
as itemized deductions from AGI.
b. Because they relate only to the office, such expenses are treated as direct expenses.
Consequently, they are deductible in full and need not be apportioned between the
business and personal use of the residence. The office in the home expense now
becomes $7,160 ($3,160 + $4,000).
c. Since the deduction for the current year cannot exceed the income from the business,
any excess is carried over to future years. The excess to be carried over is $160
[$8,000 (income) – $3,160 (office in the home) – $5,000 (related expenses)].
pp. 9-23 to 9-25 and Example 44
47. a. The $650 residual (see part b.) can be claimed as an itemized deduction (subject to
the 2%-of-AGI floor).
b. If Christine claims the standard deduction, she can still claim the educator’s
deduction of $250. Since she accounts to her employer, $500 of these expenses are
offset by the reimbursement. The balance of $650 ($1,400 – $250 – $500) are
nondeductible.
Example 47
48. a. The maximum amount for which Amber can elect § 401(k) plan salary deferral for
2012 is $17,000.
b. Her tax liability for 2012 would be reduced by $5,610 ($17,000 × 33%) as a result of
the salary deferral election.
c. $17,000 maximum amount. The election of the maximum amount reduces Amber’s
tax liability and also maximizes her contribution to her retirement fund.
pp. 9-27 and 9-28
49. Shyam has elected to contribute $1,600 ($40,000 × 4%) to his SIMPLE § 401(k) plan. His
employer will contribute $1,200 ($40,000 × 3%). Both amounts will vest immediately.
p. 9-34
50. Harvey can contribute $24,000 to his profit sharing plan in 2012, which can be calculated as
20% of $120,000, or 25%($120,000 – $24,000). p. 9-33
51. a. $10,000. A homemaker under the spousal IRA provision may take a full $5,000
deduction to a traditional IRA. Therefore, $5,000 may be contributed to Juan’s
traditional IRA and $5,000 may be contributed to Agnes’ traditional IRA. p. 9-31
and Example 55
b. $10,000. Their combined earned income exceeds $10,000. Therefore, $5,000 may be
contributed to Abby’s traditional IRA and $5,000 may be contributed to Sam’s
traditional IRA. pp. 9-30, 9-31, and Example 56
c. Leo is allowed a deduction for an amount that is equal to the smaller of $5,000 or
100% of his compensation for the year, regardless of employer contributions to the
SEP, because his AGI is less than $58,000. Thus, Leo may contribute $5,000 to a
traditional IRA. p. 9-29 and Table 9.2
52. $199,000. Assuming that Juana meets the income limitation at the time of the contributions
to the Roth IRA, all of the funds may be withdrawn tax-free. She satisfies the five-year
holding period for a Roth IRA and is over age 59 ½ at the time of the distribution. p. 9-30
and 9-31
53. a. Carri and Dane can each contribute $5,000 to their traditional IRA.
b. Neither Carri nor Dane can deduct their contributions to a traditional IRA because
their AGI exceeds the phaseout ceiling of $112,000.
c. Carri and Dane may each contribute $4,000 to a Roth IRA calculated as follows:
$175,000 – $173,000 threshold = $2,000 excess AGI
$2,000  $5,000 = $1,000 phaseout
$10,000
$5,000 ceiling – $1,000 phaseout = $4,000 contribution ceiling

d. No deduction is available for a contribution to a Roth IRA.
e. They can contribute $2,000 for each child, for a total of $6,000.
pp. 9-28 to 9-30
54. Charles must first make an allocation to determine the portion of the reimbursement that
applies to meals and entertainment and then to other employee expenses.
$4,000 (meals) + $3,800 (entertainment) = 40% (rounded)

$19,600 (total expenses)
Thus, $5,600 (40% × $14,000) of the reimbursement relates to meals and entertainment. The
balance of $8,400 (60% × $14,000) applies to other employee expenses. The deductions for
AGI and from AGI are reported on Form 2106 in the following manner:
Other than
Meals and Meals and
Entertainment Entertainment
Lodging $ 5,000
Transportation 6,000
Professional dues and subscriptions 800
Meals ($4,000) and entertainment ($3,800) $7,800
Total expenses $11,800 $7,800
Less: Reimbursement (deductible for AGI) (8,400) (5,600)
Unreimbursed portion $ 3,400 $2,200
Less: Cutback adjustment (1,100)
Unreimbursed deduction from AGI $ 3,400 $1,100
The totals from Form 2106 are reported on Schedule A, then reduced by 2% of AGI:
Total unreimbursed employee expenses ($3,400 + $1,100) $4,500
Less: 2% of $94,000 (AGI) (1,880)
Total deduction from AGI $2,620
Example 62
55. a. Brenda must make an allocation to determine the appropriate portion of the
reimbursement that applies to meals and entertainment and to other employee
expenses:
$4,000 (meals) + $8,000 (entertainment) = 46% (rounded)
$26,340 (all expenses)
Consequently, of the $12,000 reimbursement, 46%, or $5,520, applies to meals and
entertainment and 54%, or $6,480, applies to the other employee expenses. The
deductions for AGI and from AGI are determined as follows:
Other than
Meals and Meals and
Airfare $ 8,500
Lodging 4,900
Transportation 940
Meals ($4,000) and entertainment ($8,000) $12,000
Less: Reimbursement (deductible for AGI) (6,480) (5,520)
Unreimbursed portion $ 7,860 $ 6,480
Unreimbursed deduction from AGI $ 7,860 $ 3,240
Thus, Brenda has a deduction for AGI of $12,000 ($6,480 + $5,520) and a deduction
from AGI of $11,100 ($7,860 + $3,240). The $12,000 reimbursement is included in
Brenda’s gross income.
b. The $12,000 ($4,000 + $8,000) of meals and entertainment expenses now becomes a
deduction for AGI. The cutback adjustment applies to the employer and not to Brenda.
The remaining expenses of $14,340 ($8,500 + $4,900 + $940) are deductions from
AGI and are subject to the 2%-of-AGI floor. The $12,000 reimbursement must be
included in Brenda’s gross income.
c. Of the $14,340 in expenses besides meals and entertainment, $12,000 will be

classified as deductions for AGI while the balance of $2,340 ($14,340 – $12,000) is a
deduction from AGI
The meals and entertainment expenses of $12,000 ($4,000 + $8,000) are subject to a
cutback adjustment of $6,000 (50%  $12,000) The balance of $6,000 ($12,000 –
$6,000) is a deduction from AGI. Thus, the deductions from AGI total $8,340 ($2,340
+ $6,000) and are subject to the 2%-of-AGI floor. The $12,000 reimbursement is
included in Brenda’s gross income.
d. Compare the results of the three reimbursement procedures:

(a) (b) (c)
Deduction for AGI $12,000 $12,000 $12,000
Deduction from AGI 11,100 14,340 8,340
Total deduction allowed
(before 2% floor) $23,100 $26,340 $20,340
Because it yields the largest deduction of $26,340, the reimbursement procedure

provided in part (b) is the most desirable. This result comes about because the full
effect of the cutback adjustment is shifted to the employer.
p. 9-37 and Example 62
56. As the employer did not identify what the reimbursement was for, Audry must allocate it
between the items that are and are not subject to the cutback adjustment. The percentage
applicable to the cutback portion is determined as follows:
$5,000 ($2,800 meals + $2,200 entertainment) = 33 1/3%

$15,000 (total expenses)
Thus, $1,500 (33 1/3% × $4,500) of the reimbursement applies to meals and entertainment,
while the balance of $3,000 ($4,500 – $1,500) relates to the other employee expenses.
Audry’s AGI is: $59,000 (salary) + $1,600 (interest income) – $2,000 (long-term capital loss)
= $58,600.
The deductions for and from AGI are determined as follows:
Other than
Meals and Meals and
Lodging $ 4,200
Transportation 5,500
Professional dues and subscriptions 300
Meals and entertainment ($2,800 + $2,200) $5,000
Less: Reimbursement (treated as deduction for AGI) (3,000) (1,500)
Unreimbursed portion $ 7,000 $3,500
Unreimbursed deductions from AGI $ 7,000 $1,750
These items are reported on Schedule A and are reduced by 2% of AGI as follows:
Total unreimbursed employee expenses ($7,000 + $1,750) $8,750
Less: 2% of $58,600 (AGI) (1,172)
Total employee deductions from AGI allowed $7,578
Example 62
57. Before determining the miscellaneous itemized deductions, compute AGI.
Gross income:
Salary income $90,000
Gambling income 6,000
Less deductions for AGI:
Educator deduction (250)
AGI $95,750
Miscellaneous itemized deductions subject to the 2%-of-AGI limitation:
School supplies* $ 1,150

Uniforms 800
Union dues 200
Job hunting expenses** 1,300
Continuing education expenses 380
Professional dues and subscriptions 1,100
Tax return preparation fee 400
Total $ 5,330
Less: 2% × $95,750 (AGI) (1,915)
$ 3,415
Add itemized deductions not subject to 2%-of-AGI limitation 20,500 ***
Total itemized deductions $23,915
*B. J. qualifies as a secondary school teacher and this amount represents the excess over
the $250 claimed as a deduction for AGI.
**A change of jobs is not required.
***Includes $6,000 of gambling losses (limited to gambling income).
pp. 9-26, 9-38, 9-39, and Examples 29, 47, and 63

58. a. DFOR. p. 9-14

b. DFROM. p. 9-38
c. DFROM. p. 9-26
d. Not deductible. p. 9-7
e. Not deductible. p. 9-41
f. DFROM. p. 9-38
g. Not deductible. p. 9-30
h. DFOR. pp. 9-4 and 9-5
i. DFROM. p. 9-26
j. Not deductible. pp. 9-15 and 9-16
CUMULATIVE PROBLEMS
59. Ryan’s commissions $91,000

Chloe’s salary 40,000
Interest income (Note 1) 1,800
Federal income tax refund, life insurance proceeds, inheritance (Note 2) –0–
Loss on sale of ATVs (Note 3) –0–
IRA contributions (Note 4) (10,000)
Office in the home (Note 5) (4,449)
Ryan’s other business expenses (Note 6) (26,520)
AGI $91,831
Itemized deductions (Notes 7 and 8) (16,300)
Personal and dependency exemptions ($3,700 × 3) (Note 9) (11,100)
Taxable income $64,431
Tax from Tax Table $ 8,814
Less: Withholding and estimated tax ($4,000 + $5,600) (9,600)
Net tax payable (or refund) for 2011 ($ 786)
See the tax return solution beginning on page 9-24 of the Solutions Manual.
Notes
(1) Interest on the Iowa bonds of $1,500 is nontaxable (§ 103) but should be listed on line
8b of Form 1040 (page 1). For the remaining interest of $1,800 ($700 + $1,100), use
Part I of Schedule B and transfer to line 8a of Form 1040.
(2) These items all are not subject to tax. See §§ 101, 102, and 111.
(3) Although a realized loss of $4,000 has occurred, personal losses cannot be recognized.
(4) Each spouse can contribute the maximum allowed since no other retirement plan is
involved. IRAs are deductions for AGI and are reported on Line 32 of Form 1040
(page 1).
(5) Claiming a deduction for an office in the home requires the completion of Form 8829.
The business use of 10% is computed in Part I (lines 1 through 7) of the form. The
business portion of the mortgage interest is $640 (10% × $6,400) and property taxes is
$540 (10% × $5,400) by using lines 10 through 13 for a total of $1,180 (line 14). Add the
insurance of $2,500 (line 17), repairs and maintenance of $900 (line 19), utilities of
$4,600 (line 20) for a total of $8,000 (line 22) with business use yielding $800 (line 23).
The direct expense of $1,700 for carpeting (line 21) is added, for a total of $2,500 (line
25). The depreciation is determined in Part IV using a business use basis of $30,000
(lines 38 and 39). Using Table 8.6 (see Chapter 8) for property placed in service after
5/12/93 under 39 recovery years, the depreciation percentage is 2.564 (place on line 40).
Thus, the allowable depreciation is $769 (2.564% × $30,000)—lines 41 and 31. The
allowable expenses for the office in the home are $4,449 [$1,180 (line 14) + $2,500 (line
25) + $769 (line 31) and listed on line 39. Because Ryan is a statutory employee, the
$4,449 is transferred to Schedule C (line 30).
(6) As a statutory employee, Ryan must use Schedule C. Make entries as follows—
Travel (line 24a)
$7,800 + $5,000 + $900 $13,700
Meals and entertainment (line 24b)
50%($4,600 + $3,400) 4,000
Office expense (line 18) 1,300
Business gifts (line 27)
(12 × $25) 300
Mileage
1/1–6/30 (7,000 × $0.51) $3,570
7/1–12/31 (6,000 miles × $0.555) 3,330 6,900
Parking and tolls 320
$26,520
(7) The itemized deduction option is chosen since it exceeds the $11,600 standard
deduction allowed. The itemized deductions are summarized below as they are
reported on Schedule A.
Medical (no amounts given) $ –0–
Taxes—
State income tax ($280 + $1,000 + $2,000) $3,280
Real estate taxes (90% × $5,400)* 4,860 8,140
Home mortgage interest (90% × $6,400)* 5,760
Gifts to charity 2,400
Employee expenses (see Note 8) –0–
Total $16,300
*The real estate taxes and home mortgage interest are adjusted for the portion
deducted on Form 8829.
Funeral expenses are not deductible (see Chapter 3, p. 3-7 in the text).
(8) Chloe’s employment-related expenses should be reported on Form 2106. They total
$1,820 ($710 + $390 + $320 + $400) with no deduction allowed for mileage due to
the commuting prohibition. The $1,820 is transferred to Schedule A (line 21) and
then subject to the 2%-of-AGI limit (line 25). Since $1,837 (2% × $91,831) exceeds
$1,820, enter $0 on line 27.
(9) A dependent need not be alive for the whole year.
60. Salary (Note 1) $82,000

Expense allowance (Note 2) 24,000
Contribution to § 401(k) retirement plan (Note 3) (9,000)
Interest income (Note 4) 400
Treasure trove (Note 5) 5,000
Property transactions (Note 6)—
Loss on sale of lot ($4,000)
Gain on boat 500 (3,000)
Adjusted gross income $99,400
Itemized deductions not subject to the 2%-of-AGI limitation:
Medical (Note 7) $2,845
Sales tax (Note 8) 3,200
Charitable contribution (Note 9) 4,800
Campaign contribution (Note 10) –0–
Premium on life insurance (Note 11) –0–
Contribution to Coverdell (Note 12) –0– (10,845)
Itemized deductions subject to the 2%-of-AGI limitation:
Office in the home (Note 13) $ 6,000
Business use of auto (Note 14) 7,093
Employee expense—trip to Taiwan (Note 15) 4,185
Other employee expenses (Note 16) 11,200
Tax return preparation fee 400
Less: limitation ($99,400 × 2%) (1,988) (26,890)
Personal and dependency exemptions (Note 17) (11,400)
Taxable income ($50,265)
Tax liability on taxable income of $50,265 using the Tax Rate Schedule for
Head of Household is $7,211 [$6,482.50 + 25%($50,265 – $47,350)] $7,211
Less:
Withholding $5,600
Overpayment from 2011 800 (6,400)
Net tax due (or refund) for 2012 $ 811
Notes
(1) Gross income does not include the achievement award of $5,000 because it was not
received in 2012. As a cash basis taxpayer, Addison does not recognize income until
the year of its receipt.
(2) The expense allowance is treated as additional income—Addison does not render an
accounting to her employer.
(3) Most often these contributions are netted out from salary on the Form W-2 submitted
by the employer [i.e., salary will be shown at $73,000 ($82,000 – $9,000)].
(4) The $400 interest on the City of Tacoma bonds is not subject to tax.
(5) The $5,000 in cash that Addison found (i.e., treasure trove) is income. See Exhibit 3.2
in Chapter 3 of the text.
(6) As gain on the sale of personal use property is taxed, Addison has a long-term capital gain
of $500. When offset against a long-term capital loss of $4,000, the result is a net long-
term capital loss of $3,500. Because only $3,000 of excess capital losses can be deducted
against ordinary income, the unused $500 long-term loss carries over to 2013.
(7) Medical expenses paid $ 7,200
Medical insurance premiums 3,100
Total medical expenses $10,300
Less limitation [7.5% × $99,400 (AGI)] (7,455)
Medical expense after limitation $ 2,845
(8) The IRS sales tax tables did not have to be used because Addison could justify a
larger amount.
(9) Charitable contributions are deductible in the year paid. In this regard, it does not
matter for which year they were pledged.
(10) Political contributions are not deductible—to allow a deduction would violate public
policy (see Chapter 6).
(11) Premiums on personal life insurance policies are nondeductible. See Chapter 3, p. 3-7.
(12) Contributions to Coverdell Education Savings Accounts are nondeductible. However,
distributions from CESAs are nontaxable exclusions from gross income. See Concept
Summary 9.1.
(13) Office in the home business use percentage is 25% (450 sq. ft. ÷ 1,800 sq. ft.).
Indirect expenses are: $14,000 (rent) + $4,200 (utilities) + $1,400 insurance) =
$19,600 × 25% (business use) = $4,900.
Direct expense is $1,100 (carpeting).
Total office in the home expense is $6,000 [$4,900 (indirect expense) + $1,100 (direct
expense)].
(14) Automobile expenses (actual cost method):
Gasoline $3,000
Depreciation 2,950*
Insurance 2,800
Auto club dues 240
Interest on car loan –0–**
Repairs and maintenance 400
Total $9,390
Business percentage × 70%
Business portion $6,573
Add business parking 520
Total auto deduction $7,093
Traffic fines, even though incurred during business use, are not deductible.
*Regular depreciation for automobiles (5-year property) would be $6,912 [$36,000
(cost) × 19.2% (3rd recovery year)]—see Table 8.1 in Chapter 8. Therefore, the
3rd-year limitation of $2,950 must be used.
**This deduction is available only to self-employed taxpayers.
(15) Trip to Taiwan:

Airfare*** ($3,400 × 50%) $1,700
Lodging (7 nights × $200) 1,400
Meals $1,470
Less cutback adjustment (735) 735
Transportation 350
Total $4,185
***Since the exceptions do not apply, the airfare must be apportioned between
business (50%) and personal (50%) time spent on the trip.
(16) Other employee expenses:
Airfare $ 4,120
Lodging 3,300
Meals and entertainment
($3,100 + $2,000) $5,100
Less cutback adjustment (2,550) 2,550
Transportation 150
Business gifts**** 540
Continuing education 400
Professional journals 140
Total $11,200
****The business gifts are allowed in full because the cost of gift wrapping and shipping can
be added to the $25 maximum allowed.
(17) Addison’s parents qualify as her dependents and enable her to file as head of household. So
the deduction is $11,400 ($3,800 × 3).
Proposed solutions to the Research Problems and the Appendix E Tax Return Problems are
found at the Instructor Companion Site for the textbook (www.cengage.com/taxation/swft).
Previously, these items were a part of the Instructor’s Guide for the text, but now they are available
online at this site as free-standing documents, as well as on the Instructor’s Resource CD.
59.
59. continued
59. continued
59. continued
59. continued
59. continued
59. continued
59. continued
59. continued
59. continued
South-Western Federal Taxation 2013 Comprehensive Hoffman 36th Edition Solutions Manual
NOTES
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Christmas Day at Cherrywold
Tis Christmas Day at Cherrywold:

’
The snow is softly falling,
And through the valley as of old
The chimes are calling.
But I shall wander far away
This Christmas Day, this Christmas Day.
A place more fair than Cherrywold—

With nature’s gifts more blessed—
You may not find, so I’ve been told,
From East to West.
But I would not be led that way,
On Christmas Day, on Christmas Day.
WALTER EDWARDS HOUGHTON, JR.

Lothario in Livorno
George Ardrath had the misfortune to enter his adolescent stage at
the same time that he became initiated into the sacred mysteries of
poetry-love. As a matter of fact, George was far ahead of most
eighteen-year-old prep-school youths in regard to mental
development—that is, he had passed the period during which most
boys of his age delight in telling of minor moral peccadilloes. He no
longer thought that the summum bonum was to be seen in a rather
doubtful Manhattan cabaret, or to be able to talk intelligently about
the exorbitant price of gin.
George’s appreciation of the finer arts, in its early period of
incubation, was limited by the extent of his readings. There were
certain intellectual hazards such as Keats’s Ode to a Grecian Urn
which George read to find out why they were considered so
exquisite; and without being convinced in his own mind as to the
merits of those sine qua nons he accepted the judgment of his
superiors, and injected an attraction into them by main force. When
he was swamped by their intricacies, he memorized them, so as not
to be caught napping on any popular masterpiece. George was the
kind of fellow who you could be morally certain would remark: “Ah!
‘Rosemary—that’s for remembrance’,” when brought face to face
with that poetic flower in the garden in back of Shakespeare’s
birthplace. Behind all this aesthetic posing, however, there was a
real seeking after beautiful things in George’s heart, trite as that
statement may seem, and if the path to a subtle poetic appreciation
led through a rather plebeian state of mind, there was no help for it,
and in this case the end certainly justified the means.
There was one typically adolescent trait discernible in the
adolescent Ardrath, and that was his ambition to be a heart-breaker
—a youthful Don Juan, or Romeo, or even perhaps a more mature
Paolo. George could be classified in the number of those who
smugly exhibit the farewell salutation of a girl’s letter, discreetly
shading the immediately preceding part—the whole process being
attended by a certain atmosphere of delightful mystification. So
George could hardly be called abnormal—his Relations With Women
(awe-full term!) redeemed him to the ranks of gum-chewing,
suppressed-book-reading Much Younger Generation.
It so happened that George went abroad with his family, the
summer before he planned to enter college. Being a creative as well
as appreciative dilettante, he felt it his duty to be inspired by the
Atlantic, and composed some rather frightful sea-poems. In this
respect George was somewhat of an opportunist; there were certain
great occasions, tremendous poetical crises, at which George
intended to produce intellectual gems—“Upon Seeing Stratford-on-
Avon”, “Lines Written at Montmartre”, “At Westminster Abbey”, and
so on. Thus it is evident at once that young Ardrath was destined to
experience a profound literary Renaissance in Italy. That, however,
comes a little later in the story.
George had the further misfortune (in our own critical judgment,
though certainly not in his) of meeting on the eight-day boat a girl
who really took him seriously—almost as seriously as he took
himself. She was older than he, but not much more sophisticated.
Irma had studied in a small seminary in California, and had
consequently escaped the superworldliness of students in the large
Eastern colleges. She saw that George was not an ordinary type of
boy, and in his individualistic traits she made out the factors which
distinguished him as a future virtuoso, perhaps even a coming
genius. Youth often stumbles, through infatuation, upon real truths of
significance, and the glamor of a romantic attachment may indeed
be but a superficial coating above a genuine appreciation of latent
talent. However that may be, Irma liked George immensely, and
George imagined that the feeling was mutual.
The enamored pair pursued their literary and amatory inclinations
to the full on board ship. They would slip off between dances on the
deck by moonlight, and read Swinburne or Dowson to each other,
really enjoying themselves. There was a certain zest in believing
themselves superior to the common run of couples who merely
embraced each other amorously in covert nooks; it seems elevated
to kiss to the music of Swinburne’s Atalanta—to shut the book with a
half-gasp of utter emotional exhaustion, and seek each other’s lips.
Romeo and Juliet could not have acted out the passion more
realistically, with all the stage-craft available.
When George and Irma parted at Cherbourg, bound for different
destinations, it was with almost genuine affection, though much of it
had been puffed up artificially to merit the setting. They promised to
write each other faithfully—George had a visual image of himself
sitting down at a desk in the Hotel Palermo in Florence and penning
something akin to this:
“Dearest Irma:
“As I sit here, with the Arno flowing mellifluently far below
my lattice window, I cannot help thinking of you in Versailles,
that beauty-spot of this prosaic world, walking lightly through
the magnificent gardens and estates of the great Louis
Quatorze....”
The effects of a catholic taste in literature, and four years of

French, are only too evident in this prospective outburst.
It was with intense surprise that George, one bright morning,

bumped literally into Irma and her mother on one of the principal
streets of Leghorn, on the west coast of Italy. (George preferred the
more “mellifluent” name Livorno—Leghorn always reminded him in
his subconscious mind of a kind of chicken, and he had an
irresistible impulse to laugh, which would have been fatal to all true
sentiment). After the conventional references to the small size of the
world, after all, George inquired:
“What are you doing here, of all places? You never told me you
expected to take in Italy.”
“We really didn’t think at first we would, George, but I wanted to
see it so badly that mother finally gave in, and here we are! You don’t
look overjoyed to see me, George, or are you overcome by the
shock?”
“Nonsense, Irma; you surprised me, that’s all. I was in the clouds
just now, reciting Shelley’s ‘To a Skylark’ to myself, to the intense
annoyances of all the Livornian traffic-policemen (I presume that’s
what they call the creatures). Where are you staying, Mrs. Bench?”
“We’re at the Continental, George; do come up and see us some
time. We don’t know a soul, and it’s terribly lonely.”
“Then I shall play the rôle of the Friend From Home to you and
Irma, and show you with great and unabating gusto all my
snapshots. How about that for a dull evening’s entertainment?”
“Splendid!” said Irma without much enthusiasm. George was
always trying to be so infernally clever!
“I’ll come up to-night,” said George in a moment of inspiration,
“with appropriate guide-books and illustrated slides.”
And he walked off down the street—but in the confusion he
seemed to have forgotten the last few lines of Shelley’s lyric.
That evening, after Mrs. Bench had been tactfully dismissed for
the night, the young blood Ardrath and his serious-minded
companion took a long walk along the bay of Leghorn. “It was on this
bay that Shelley lost his life while sailing,” recited George with the air
of a very efficient but somehow uninspiring courier. “In his pocket
was a book of his friend Keats’s poems, doubled back at the one
called ‘St. Agnes’s Eve’. You know—‘St. Agnes’s Eve, ah, bitter chill
it was!’”
“How romantic!” offered Irma. “I suppose you’d like to be drowned
here too, and be cremated like Sam McGee (blasphemous
thought!).”
They walked on in silence for a few minutes. George was trying to
remember the next lines of “St. Agnes’s Eve”, as he termed it. Irma
was trying to decide whether she really still liked George or not.
Somehow the month’s separation which had just ended had cooled
their ardor considerably—on her part, at least.
“Shelley, in a way, must have been rather wet,” said Ardrath after
the pause. “He was unpopular at Oxford; they threw mud at him one
night when he became particularly obnoxious to the conservative
students, and insisted upon advocating atheism to his comrades.”
“Oh, but we’re all wet one way or the other, George, don’t you
think? Shelley may not have been the man you are, but he wrote
better poetry.” This last with a tinge of irony that did its work.
“You’re making fun of me, Irma. You don’t think I’m a bit sincere in
anything I say.”
“Not at all. There were a lot of things you said to me on the boat
which I believed were sincere.”
“Don’t you still think so?”
“Not entirely. I have an idea that you were more or less posing
when you said them—that you let yourself think they were true, just
for the sake of being romantically clever.”
George pondered. After all, there was a certain virtue in being
frank.
“As a matter of fact, you’re right—”
“What!”
Evidently he had blundered. George tried another tack.
“I mean, perhaps I said some things that a sensible person
wouldn’t have.”
“Then you can’t be called sensible?”
“No. Sometimes I act like a darn fool.”
“And I was a darn fool on the boat to think you meant anything you
said. Well, it’s lucky I’ve gotten over it now.”
“Irma, what do you mean?”
“You know perfectly well what I mean. There’s no use of our
pretending we care for each other any longer.”
George waved his hands in a great gesture.
“But you don’t understand, dear. I care for you in a different way
now; I’ve gotten over all my sentimental romanticism.”
Somehow this did not sound sincere or convincing to either Irma
or himself. The girl straightened.
“How do I know that this is true, if you were just fooling on the
boat?”
They were walking on a ledge that overhung the bay now, and the
blue water of the Mediterranean gleamed in the moonlight thirty feet
below. Irma looked at it, and a devilish glint came into her eye.
“George, if I jump into the sea, will you come after me?”
Assuredly this was carrying things too far, thought Ardrath. Irma
had again taken him too seriously. But he maintained his poise.
“Of course; but don’t be a fool.”
“I hate sensible people,” she replied. “They always do the obvious
thing. For a long while I’ve wanted to do something unusual,
something quite unorthodox. George, I am going to dive in.”
It was impossible to stop her. Bent like the curve of a bow, her
slender body arched as it plunged into the water.
There was a big splash as another body hurtled down and struck
the waves.
It was unfortunate that George had never learnt how to swim. After
he had gurgled around for two breathless submersions, Irma took
compassion on him and dragged him out. They have excellent
aquatic sports in Pasadena.
“I’m sorry, George, really,” said Irma tenderly. “I never thought for a
minute that you couldn’t swim. Will you forgive me?”
“No,” replied George. “Good-night.”
He walked off without further remark. His soggy clothes clung
about him; his shoes squirted water from all openings; and he felt
damp. Irma followed at a respectful distance. She felt strangely in
the wrong.
It was about twelve o’clock when the dripping pair reached the
Continental Hotel. To their intense relief there were few people on
the streets to see them. In the lobby Irma forced George to take her
hand and say good-night in a pleasant tone of voice.
“It was really splendid of you to jump in like that when you might
have drowned. I don’t know how I can ever forgive myself, much less
expect you to do it. But I hope you will. I was certainly an awful fool
to-night.”
George made a fierce effort and regained his poise.
“‘There’s little comfort in the wise’,” he remarked. “Good-night,
Irma.”
When Mrs. Bench caught sight of her bedraggled and rather
miserable daughter sloshing into the room, she was naturally
surprised and quite wrought up.
“What on earth happened to you?” she demanded.
“I fell off a ledge into the bay,” lied Irma glibly, “and George dove in
and pulled me out.”
NORMAN R. JAFFRAY.
Brushwood Rabnon
The bright spring sun made it a different France than we had
tramped two weeks before. Then it had been dark; cold rain had
made our cassocks cling like gowns of soft lead, half-frozen roads
had cut and blistered our feet. But now, the sky was blue
everywhere, and the light sparkled from wet leaves and the little
pools that lay along the road. I felt reborn into the full flush of youth: I
loved the countryside, the Order which had sent me there, the man
with whom I was travelling. I loved the ooze of cool mud that squirted
between my toes and splashed about ankles tired from walking.
Eleven miles that morning had been a pleasure such as we rarely
enjoyed. Our spirits were coming out of their hibernation, with all
nature.
I turned at last, as we came over the crest of a hill, and broke the
friendly silence that had been between us for some time.
“Look, Rabnon, there is the town. I had not expected it to be so
beautiful.”
We stopped to gaze out down the road, for it was beautiful indeed,
and we were always willing to stand resting awhile. Below us a
shallow valley ran from side to side, its furrow lined by the twistings
of a small stream which joined at right angles with the sharper
twistings of our present thoroughfare. Where these two met, the
village spread itself in an irregular T shape, the larger buildings in the
center outlining their tops against the sky, while their lesser,
peripheral neighbors snuggled unostentatiously into the flattened
background of hill and river. Upstream, on higher and less cultivated
ground stood the modest fortress of the Lord of Camereau, its round
brown walls unremarkable save by a drawbridge which was half up
and half down, so that it rested in relief against a light spot in the
woods with a curious air of suspense, and a white pennon which
waved in the blue its allegiance to the King of France. Like the pools
and foliage at the roadside, roofs and rocks as far as we could see
glistened with moisture from the night’s rain and the steaming earth.
The stream was a ribbon of alternating coruscance and tree-shaded
brown water. The sharp sound of a hammer on planks came
distinctly across the intervening mile and told us that some one was
repairing his home from the ravages of water. Altogether, everything
looked as if in the process of being fixed up and made ready for an
event; the valley was as rejuvenated as myself.
“Neither had I,” said Rabnon gruffly, and it was impossible to tell
whether or not he felt that immanent something as I did.
It had not occurred to me to look closely at him before this
morning, and I turned now as he stood gazing down the road to
make sure it was the same Rabnon of a fortnight ago. As you know,
this strange director of my dreams appears in surprising forms, and,
while matters in dreams are usually matters of course, yet I never
began a night’s escapade with him without a little misgiving lest he
take some such terrible shape as the pirate who guided my pen in
that devastating evening a year back. However, the benign
countenance of my fellow-friar could hide no malice to-day, I thought.
His grey hood was thrown back over sturdy shoulders, discovering
an impressive head of white hair; the face was seamed, and set in a
kindly, immobile expression. His eyes alone did not betray his age,
for their deep-set glitter was as eager and querulous as I supposed
must have come from mine.
We walked on down toward the town, and I began a conversation
on a subject which seemed to have been a long time on my mind.
“Rabnon,” I said, “I don’t for a minute doubt the good work our
Order is doing, and I feel as whole-heartedly pledged to its cause as
in the first days of enthusiasm, but sometimes I grow a little
squirmish under its restrictions. I am no longer a boy, but I am still a
young man, and it is spring. There is something in my blood that is
not as celibate as my body.”
“My boy,” said Rabnon, “love of God and love of woman are as
opposite as Heaven and Hell. You cannot serve God and Mammon,
and, to speak in pagan terms, you cannot serve Zeus and
Aphrodite.”
“But Aphrodite was both daughter and servant to Zeus,” I replied,
perhaps a little anxious to show my learning followed his. He only
laughed. “Oh, come! We are neither scholars, nor scholists to argue
angels off the needle’s point. I mean that if either of us allowed
ourselves a woman’s love, there would be moments when God’s
purpose would be farthest from our minds. St. Francis knew it as well
as anyone, wherefore it is something you must suffer. My blood was
hot enough in my day; I used to consider the dissatisfaction of it a
part of my martyrdom.” He laughed again, and so disputing we came
at length into the street of the town, and to the inn.
Those who do not know Rabnon and me from before must be told
of a feminine face I have never been able to remember for
description, there in my dreams without the sanction of my most
unconscious sense I am sure, delightfully haunting, agonizingly
beyond my control. Imagine, then, my surprise in the light of our
travel’s talk when I saw a young cavalier in the courtyard helping
dismount a lady with such a face and a familiar figure. Imagine, too,
the furtive glances of a rebellious celibate, following them through
the gate into the high-raftered room where mine host greeted us all
from among his many tables. A significant sleeve-plucking from my
friend was necessary to make me leave staring after the pair and join
him in a corner, where we ordered an ale. And I did not talk more
easily with him because the cavalier and his companion were seated
at the head of a long table before us, so that I was to be observing
them for the duration of our stay.
While we waited for the ale, I looked at that elusive face, and took
up the discussion with Rabnon, at the same time. “Now the pretty
waitress,” I pointed to the girl who had taken our order—she was
then engaged in repartee with my flashy nobleman—“she has
probably had more than one lover, and neither she nor they have
taken more than the moment’s concentration from their more serious
occupations. Yet the youth and the man in them have been satisfied,
and—”
“Hold on,” Rabnon interrupted. “Now you are bringing up a
different question.”
“Am I?” said I, disinterestedly. The girl’s expression, I thought, was
strangely sad, her eyes remarkably wide and frightened, for one in
such gay attire and with such dashing company. She should be
laughing with her companion, and draining her wine with vigor to
mine host, but I saw her fingers tremble as the glass went to her lips,
and she sits, quite out of the merriment, her thoughts apparently
somewhere beyond the leaded windows.
“You are,” said Rabnon. “The question of passion without love.
And it doesn’t work, old man. I can tell you that. It’s a sure way to get
into trouble, and more distraction from our work than—”
I cut him short. “Rabnon, you are talking of love, and I am writing
of it. Does either of us know anything about it? I have heard that the
God of the mystics is perhaps only the effect of psychological
actions. Something comes welling up in a man: it is the love of God,
whom he sees, as the days go on, more and more clearly through
the mists of his own consciousness. Suddenly the idea—is it really
God from outside? we wonder—takes the predominant position in
his mind; he is in love with God, and he cannot help this. Men have
been in love also with other ideas than God. Is it not thus that love of
woman comes? Doesn’t it explain ‘love at first sight’? If you had
been obsessed by an idea, and it had been forming and churning in
your mind for days and days, and suddenly—presto!—there it is in
the flesh—” I waved my hand, and turned back to my scrutiny of my
lady. “Some day, I am going to remember and write that face,” I
finished.
While we were talking, the escort of the lady had risen and
advanced to the waitress, who stood before the fire. Everyone in the
room could conjecture his intent, and everyone could see that she
was frightened; he was big and burly, fitter for battle than for love.
Rabnon put his hand on my arm to call my attention to the
movement, and we watched silently, with the rest of the room, this
sudden dramatic turn of events. It was evident that the man was
drunk.
The two by the fire had stood whispering a moment, when the girl,
who was strong and buxom, hit her assailant resoundingly across
the face. He replied by taking her in his arms, and a struggle ensued
for his punitive kiss. The waiting audience roared and clapped, with a
great pounding of pottery and dishes. For myself, I was disgusted
thoroughly, and I saw Rabnon’s great fist close tightly where it lay
upon the table. “I don’t like this atmosphere,” he said presently. “Let’s
get out upon our way again.”
But as we got up, the sad lady who had been with the attacker of
waitresses rose too, and we stood by our benches, interested in this
new complication. She had been watching, I had noticed, with more
active distaste than ourselves, her escort’s proceedings. Now she
ran lightly to the struggling pair, and laid her hand on the man’s
shoulder. “Come Camereau,” she said, “you are attracting a great
deal too much attention, and we are late. I did not agree to
accompany you on any such doings as these. Let us get on, or I
shall go without you.”
I am not fully conscious to what passed during the next few
moments. I know that the brute struck her, with an oath, and that she
fell back, supporting herself against the table. Rabnon told me later
that the maid screamed. I did not hear it; I found myself across the
room, with the gallant by the throat. “Were you not so drunk,” I was
saying, “I should wad you up the chimney flue with the rest of the
waste.”
The man shook himself free, and we stood glaring a moment,
while he poured out torrents of abusive threats to me of a more
eternal sort of flame. Then he seemed to recollect himself and drew
up, straightening the prettiness of his attire. “You should think twice,
friend friar,” he said, “before interfering in other people’s affairs. Do
you know who I am?”
I stood facing him, my hands on my hips. “I ought to,” I replied.
“But you do not know me, Sir Guy.”
“You ought. I am the Guy of Camereau, and my soldiers are
everywhere in the village. And why, then, should I be interested in
your identity?”
“It seems always necessary,” I said, “to reiterate that I am the
author of all these adventures, and that I am the Creator of you all,
for am I not dreaming and writing you even as we speak? Great
gingoes, man! I notice now that I have forgotten to give you a face,
and you prate to me of soldiers and sovereignty! Come now, I shall
need to put a physiognomy on you so as to have the pleasure of
marring it.”
His hair was black and oily, and hung down about his shoulders in
round artificial curls. Black, heavy-browed eyes looked out surlily
from above fat bags of dissipation upon his cheeks. His nose was
heavy, and seemed turned under at the end, so that he was always
smelling his thick mustaches which were curled at either extremity.
His lower lip hung down exactly like a grizzled old bulldog’s mouth,
and it was there that I hit him while he mumbled more grotesqueries.
They were picking him up, unconscious, when I turned about and his
lady fell fainting into my arms.
With the feel of that soft arm in silks under my hand, forgotten was
Rabnon, and the inn, and the crowd. I picked her lightness up;
people were about me, but I shouted, “Make way,” and we two were
soon alone by the spring in the courtyard. I was bathing her face with
her own small handkerchief, and sobbing. “At last! I have touched
you at last, you whom I have seen in so many guises, and who have
escaped my grasp as often as you have eluded my pen. Oh,
perfection! It cannot be that you are a part of my dreams, for there is
nothing within me as perfect as you. Oh, my dear, my dear; I cannot
imagine you, I cannot move you, and now, I cannot help you, when,
in these hours, it would be my power to awaken anyone else!” And I
went on mumbling and mixing my tears with the water I poured on
her dainty wrists.
Presently she opened her eyes, and looked at me. “You!” she said.
“Why have you always vanished from my dreams just as I was
becoming interested in you? I have always suspected you of being
not one of my creatures, for I had no control over you whatsoever,
and when you were about, my own dream-people did amazing
things. You are not at all like anyone of my imaginings, yet I like you
far better than the lot of them.”
I would have taken her pretty lips to mine, she was so natural and
so weak now, but I remembered my cloth and kept myself kissing her
hands. Then I burst out laughing: “The Brushwood Boy!” She smiled.
“Were you thinking that too? I’m so glad you have read it. But they
had no trouble meeting in their dreams. Look, we must talk this
matter out, now, for combined, we can make our evenings bring us
together as much as we desire—” And she put her lovely arm about
my neck and pulled my head down. “I think I should like to be
together with you—in my dreams—forever—”
I had known she would say something of the kind and had steeled
myself against it. Women always speak first. “To-night,” I said, “which
is todreamday,—I should like to start a long series of dream-days
together. And it is true that whatever one wants badly enough may
be materialized in a dream; it is thus that we have at last gotten
together.
“But to-night I am a friar, and sworn to the observance of celibacy;
to-night I have duties elsewhere, so I must see you safely cared for
and fare onward into the dusky places of the dream.” She rose,
sorrowfully, and supporting her on my arm, I continued, “We can only
hope for another meeting at another time. Neither of us can be
untrue now to the artistry we have begun. You too must have your
destiny to-night?”
“Your Camereau had spoiled it,” she said, as we turned again to
the gate. “I was looking, it seemed, for a lover to-night, but he met
me on the road.”
I could not help interjecting a smile. “A Freudian pickup!” I
laughed. But she would have no levity. “My evening is over,” she
said. “I shall stop writing, and awake. Let me precede you into the
inn.” And with a vague little glance she turned and went in; I did not
see her again.
Shortly, Rabnon came out, and we went on our way again, but my
blood was no longer boiling with the spring, and I had no carnal
arguments, for I was thinking neither of philosophy nor of Franciscan
tenets. After we had walked a mile or so I turned to Rabnon and
said, “You are right. A woman will drive our God out of the heart of a
man. For a woman is God to a man who is in love.” Rabnon very
seriously and apparently irrelevantly, answered as he looked into my
face, “We must travel far to-day, my friend.”
And because I was a maudlin artist I could not help writing a soft
breeze into the trees that stood by the wayside so that they sighed
and shivered as we went down a hill and left Camereau behind us.
I look up and see that dawn is coming in at the window; dawn is

here, and a moment ago I was dreading the sunset. For we must
travel far, Rabnon and I, to escape from love and laughter, and to do
God’s work....
Yet, I am waiting for another dream on another day, where love
only is God.
D. G. CARTER.
Book Reviews
The Boy Grew Older. By Heywood Broun.

(Putnam’s.)
“The Boy Grew Older” is a tale of paternity told in the terms of a
sporting-writer. As a story of paternity it is rather appealing; one
cannot help but feel a warm sympathy for this bewildered, clumsy,
kind-hearted reporter who takes it upon himself to rear his infant son,
after his dancer wife has deserted them. The very theme plays (not
too delicately!) on the chords of human compassion. But as a story
told in the terms of a sporting-writer, it is not so successful. The style
shows lack of careful writing. It often verges on sloppiness. Mr.
Broun imposes upon a public which has raised him to popularity, in
writing in so slipshod a fashion. Besides, the story in itself deserves
a finer exposition.
Peter Neale is the writer of a sporting column in a New York
newspaper. He falls in love with Maria Algarez, a dancer, and chiefly
by virtue of the fact that he praises her as much as she demands,
persuades her to marry him. When their baby is born, she runs away
to Europe to have her career, unfettered by the cares of maternity.
Peter unselfishly devotes himself to the care of the boy. It is his
ambition that he shall grow up to be a Harvard athlete, and finally
inherit his father’s column. The war comes, and after it there is a
meeting with the mother again—with the final decision of the boy’s
career.
In an incidental way, Mr. Broun’s often-exercised delight in making
Harvard appear superior to Yale comes into the story. Father and
son help vanquish Yale. We mustn’t mind that, if it pleases him!
Besides, occasionally Mr. Broun achieves an amusing paragraph by
his obsession—as when the father, unable to recall the words of a
lullaby, sings the baby to sleep with Harvard’s song ending:
“And if any Eli—”
The song had to be cut short; the baby must not learn Harvard men’s
words of profanity at such an early age!
Whatever faults the assiduous critic may find, “The Boy Grew
Older” is an amusing story—and that’s the greatest reason for
buying new novels, anyway!
C. G. P.
Command. By William McFee. (Doubleday, Page &

Co.)
In writing a review of a sea story it is customary to hail in the names
of several other sea-writers—either for laudatory, or for defamatory,
purposes; or for no purpose whatever—but to hail them in,
nevertheless. The process usually proves little more than the truth of
the ancient observation that comparisons are odious—and
odiousness is associated with reviewing quite enough as it is.
The name of William McFee is great enough to stand alone, in the
world of books. He writes of the sea with a sureness born of first-
hand knowledge, for he was a sailor before he was an author.
“Command” is a story of the life aboard a ship in wartime.
Spokesley, the hero, a British second officer, is called to duty in the
Aegean immediately after becoming engaged to a girl in England.
There was little love wasted in the betrothal, and therefore Mr.
Spokesley has few qualms when he becomes really, passionately
enamoured of a girl of the South. This is the barest hint of the thread
of the plot. “Command” offers a great deal more—pictures of the
torpedoing of a ship in mine-strewn waters, of a collision with a
warship at night, of the surging life in sea-ports along the
Mediterranean—so many that the story is in danger of growing
tedious with too long sustained excitement.
The characters are memorable. Not so much by their descriptions
as by their actions are they impressed. Mr. McFee has taken so
much pains, by inserting a preface to the effect, to assure his
readers that the story is purely fiction, that one is tempted to wonder
which of the characters are drawn from life.
“Command” is, to be dogmatic, Mr. McFee’s best book; though
various people will at once proceed to deny that, they will certainly
agree that his work has been so uniformly good as to place it very
near the top.
C. G. P.
Where the Blue Begins. By Christopher Morley.

(Doubleday, Page & Co.)
To say anything critical about Mr. Morley’s book is like saying
anything critical about “Jurgen”—it is impossible—and “Where the
Blue Begins” hasn’t even the depths of salacious possibilities which
permitted the columnists to fill their columns in the days of Cabell’s
first prominence. In fact, it is nowhere so deep as “Jurgen”, yet it is
another of those books out of which you may get as much as you
bring to it, though you are acutely doubtful throughout whether the
author intended half the thoughts he has created within you. But
“Where the Blue Begins” is a delightful fantasy for anybody. The
whimsical adventures of Gissing are just the disorganized evening-
hour adventures in which anyone with a mind is apt to indulge.
“Where the Blue Begins” is an evening-hour book, or rather, a
book for several evening-hours. When the fatigued upper-classman
has his to-morrow’s Freshman calculus laid aside as a bad job, and
has lit his pipe in complete acquiescence to the fact that his brain is
in a fog, let him prop his feet against the new University fire-screen
and seek happiness with Christopher Morley. But leave a call with
the janitor for chapel time next day. You will never know when Morley
stopped and your own dreams began.
D. G. C.
Pre-Raphaelite and Other Poets. By Lafcadio

Hearn. (Dodd, Mead & Company. Net, $2.50.)
The unusual imaginative mind of Hearn, through Irish and Greek
parentage, and exposure to Japanese culture, combined weird
romanticism and realism with a strange mysticism. To this variegated
composite, he added a background of concepts formulated in
England, the United States, and St. Pierre. These impressions,
visual and mental, produced spontaneously literary projections
ranging from “Stray Leaves from Strange Literature” in 1884 to
“Japan, an Interpretation” in 1904.
Professor Erskine of Columbia University compiled this volume
from Hearn’s lectures delivered at the University of Tokyo in 1896-
1902. The major division includes analyses and studies of Rossetti,
Swinburne, Browning, Morris, and Meredith. Corollary to this, are
notes upon Rossetti’s prose, and Meredith’s “The Shaving of
Shagpat”. A consideration of the harsh Scotch conservatist, Robert
Buchanan, and the contemporary poet of quiet effects, Robert
Bridges, conclude the volume.
Hearn discerns Rossetti’s thoughtful melancholy, sensuous
touches, and mystic feeling. The pictorial quality and medievalistic
setting of the poet and the painter’s verse are traced artistically
throughout the shorter narrative poems, “Rose Mary” and “The
Bride’s Prelude”. The technical construction that underlies the poet’s
exotic color and temperament, is emphasized by Hearn as a proof of
Rossetti’s energetic intellect.
Swinburne is classified as the greatest English verse writer,
scholar, critic, and living dramatist. He is a pessimistic evolutionist
preaching almost an immoral law, contrasting vividly with George
Meredith. As a further contrast the problem of evil is approached by

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South-Western Federal Taxation 2013

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South-Western Federal Taxation 2013 Comprehensive

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South-Western Federal Taxation 2012 Individual Income

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DEDUCTIONS: EMPLOYEE AND SELF-EMPLOYED-RELATED EXPENSES

SOLUTIONS TO PROBLEM MATERIALS

1 LO 1, 9 Schedule C of Form 1040 and Form 2106: New

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21 LO 4, 7 Tax treatment of first job expenses Unchanged 21

*57 LO 5, 7, 10 Miscellaneous employee expenses Unchanged 57

1 Employee versus independent contractor status: Unchanged 1

28.a. 4,900 miles. 49. $2,800; vest immediately

e. A deduction is allowed for tuition payments on behalf of dependents.

f. The cutback adjustment applies. p. 9-20

d. If the residence is owned, an allocable portion of depreciation is allowed. If rented, an

f. The excess is carried over to the next year.

pp. 9-23 to 9-25

b. Expatriates are exempt from the 39 or 78 weeks requirement.

See Global Tax Issues on p. 9-14 and Example 64.

27. a. A deduction is allowed as losses do not exceed gambling gains. p. 9-38

Cost of automobile $40,000

b. Cost of automobile $40,000

Bret’s deductible expenses are as follows:

Airfare (one ticket) $1,000

Examples 16, 17, and 19

35. a. $3,320, determined as follows:

b. $2,000. A second category of MAGI (more than $65,000 and up to $80,000).

d. No deduction is allowed for a taxpayer who is claimed as a dependent by another.

pp. 9-17 and 9-18

Cost of seats ($200 × 20) $4,000

p. 9-22 and Example 40

46. a. The office in the home expense of $3,160 is determined below:

Because Melanie’s consulting business yields a profit of $8,840 [$17,000 (income) –

pp. 9-23 to 9-25 and Example 44

$5,000 ceiling – $1,000 phaseout = $4,000 contribution ceiling

$4,000 (meals) + $3,800 (entertainment) = 40% (rounded)

c. Of the $14,340 in expenses besides meals and entertainment, $12,000 will be

d. Compare the results of the three reimbursement procedures:

Because it yields the largest deduction of $26,340, the reimbursement procedure

$5,000 ($2,800 meals + $2,200 entertainment) = 33 1/3%

School supplies* $ 1,150

pp. 9-26, 9-38, 9-39, and Examples 29, 47, and 63

58. a. DFOR. p. 9-14

59. Ryan’s commissions $91,000

60. Salary (Note 1) $82,000

(15) Trip to Taiwan:

9-34 2013 Comprehensive Volume/Solutions Manual

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Tis Christmas Day at Cherrywold:

A place more fair than Cherrywold—

WALTER EDWARDS HOUGHTON, JR.