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In the current year, Marvin's AGI is $52,000. Marvin has no miscellaneous itemized deductions other than the employment-related expenses listed below. Marvin attends a professional

In the current year, Marvin's AGI is $52,000. Marvin has no miscellaneous itemized deductions other than the employment-related expenses listed below. Marvin attends a professional trade association convention in Los Angeles. He spends three days at the meeting and two days vacationing before the meeting. Marvin's total expenses include the following:

Airfare

$750

Meals ($60 per day)

300

Hotel ($150 per day)

750

Entertainment of customers (business is discussed)

450

Total

$2,250

Marvin's employer reimburses him for the business-related expenses and, accordingly, Marvin receives a reimbursement of $1,830 ($750 + $180 + $450 + $450).

a.

How much can Marvin deduct for employment-related expenses?

b.

How is the reimbursement reported on Marvin's tax return?

c.

How much of the reimbursement may Marvin's employer deduct?

d.

How would your answers change if Marvin spent two days at the meeting and three days vacationing? Assume Marvin received no reimbursement from his employer.

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