Question

an employee is required to include which of the following in income a) the cost of meals b) the cost of lodging c) an amount paid to aminister

Answer 1

ou can figure your meal expenses using either of the following methods.

• Actual cost.
• The standard meal allowance.

Both of these methods are explained below. But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals.

If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. If you aren’t reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment.