Question

Which of the folllowing statements is true with regard to the classification of employemnt-related expenses?

a. A self-employed taxpayer's businness travel expenses are deductible as itemized deductions

b. Reimubrsment employee businness expenses are always deductible as deductions for adjusted gross income.

c. Unreimbursed employee business expenses are deductible as deductions for adjusted gross income.

d. Unreimbursed employee business expenses are deductible as deductions from adjusted gross income.

e. All of the above are true

Answer 1

Expenses in relation to business incurred is allowable for expenditure for any comapny subject to there policy for employees and self employed taxpayer also allowed the business travel expenses.

Option c. This statement is not true because unreimbursed employee business expenses have no treatment in business. So this option is incorrect.

Option D :This statement is not true because unreimbursed employee business expenses have no treatment in business. So this option is incorrect.

Option A: Business travel expenses are incidental and in relation to earn the business income so this is allowed as itemized deduction, So this option is correct

Option B: Business travel expenses of employees is also deductible as deductions for adjusted gross income. So this option is also Correct