Question
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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