Certified Relocation Professional (CRP) Practice Exam

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Enhance your relocation knowledge and skills with the CRP Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the maximum amount that a transferee can deduct for a meal expense on their federal income tax return when they spend $40?

The correct answer is: $0

The maximum amount that a transferee can deduct for a meal expense on their federal income tax return when they spend $40 is $0. This is due to the changes in the tax law regarding the deductibility of meal expenses for individuals. Specifically, the Tax Cuts and Jobs Act of 2017 eliminated the deduction for unreimbursed employee expenses, including meals, for employees who do not have a business-related context for the expense. As a result, unless the meal expense is incurred in a business context (and even if it is), individuals cannot claim a deduction for these expenses on their personal tax returns. Understanding this framework allows transferees to accurately assess their eligible deductions based on current tax regulations, reinforcing the importance of staying informed about changes in tax laws affecting deductions.