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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
in the curerent year, Mike's AGI is $50,000. Mike has no miscellaneous itemzed deductions other than employment related expenses listed below. Mike attends a professional trade association convention in Los Angeles. He spends three days at the meeting and tow days vactioning before the meeting. Mike was unable to obtain excursion airfare rates ( i.e. staying over a Staurday night) despite the fact that he was on vacation immediately before the meeting. Mike's total expenses include the following:
Airfare $450.00
Meals ( $50 per day) 250.00
Hotel ($100 per day) 500.00
Entertainment of customers
(business is discussed) 500
Total $1,700.00
Mike's empolyer reimburses hin for the business related expenses and, accordingly, Mike receives a reimbursement of $1,400.00 ($450.00 + 150 +300 +500).
a. How much can Mike deduct for employment-related expenses?
b. How is the reimbursement reported on Mike's tax return?
c. How much of the reimbursement may Mike's employer deduct?
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