Question

Roberta is an accountant employed by a local firm. During the year, Roberta incurs the following unreimbursed expenses:

Travel to client locations $750

Subscriptions to professional journals $215

Taking potential clients to lunch $400

Photocopying $60

a.	Identify which of these expenses are deductible and the amount that is deductible by Roberta; Indicate whether they are deductible for or from AGI.
b.	Would the answers to Part a change if the accounting firm reimburses Roberta for these expenses under an accountable​ plan?
c.	Assume all of the same facts as in Part​ a, except that Roberta is​ self-employed. Identify which of the expenses are​ deductible and indicate whether they are deductions for or from AGI.

Answer 1

A)

Travel to clients location $750 - Deductible for AGI

Subscriptions to professional journals $215 - Deductible from AGI

Taking potential clients to lunch $400 - Deductible from AGI

Photocopying $60 - Deductible from AGI

B)

Answer of part A will not change even if accounting firm reimburses Roberta, because all expenses are business expenses which are deductible as all expenses are incurred in course of business on behalf of the firm.

C)

In the case Roberta is self employed, all expenses will be expenses Deductible For AGI, such expenses will include employees business expenses which have not been reimbursed. Such deduction will be given to the extent at which expenses exceed apa specific percentage of AGI.

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