For or From AGI Deductions. Roberta is an accountant employed by a local firm. D
ID: 2442635 • Letter: F
Question
For or From AGI Deductions. Roberta is an accountant employed by a local firm. During the year, Roberta incurs the following unreimbursed expenses:Item Amount
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.
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?
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.
Explanation / Answer
Roberta is an accountant employed by a local firm. during the year, roberta incurs the following inreimbursed expenses.
Item Amount
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. Indicate whether they are deductible for or from AGI.
Travel to client locations $750 Travel to client locations is a for AGI deductible expense since it is business related and is re-imbursed by the individuals employer.
The deductible amont is $750.00. Subscriptions to professional journals $215 Subscriptions to professional journals are also included as a deductible expense and it is from AGI because this activity is classified as an investment activity since it can also contain educational information and resources.
Taking potential clients to lunch $400 Taking potential clients to lunch would be considered a business expense and is reimbursable by an individuals employer. The amount that is deductible is $400. Photocopying $60 Photocopying is also deductible as a business expense that is reimbursed by the employer as long as it is attributable to the production and collection of income This is a for AGI deductible expense
B) Would the answers to Part A change if the accounting firm reimburses Roberta for these expenses?
None of the answers would really change because these are all business expenses that are reimbursed by the employer
C) assume all of the same facts as in Part A, except that Roberta is self employed. Idetify which of these expenses are deductible, and indicate whether they are deductions for of from AGI.
All of the expenses would be for AGI and if Roberta is self employed, all of these expenses would deductible be to the extent in which they exceed a prescribed percentage of the individual's AGI. These expenses include unreimbursed employee business related expenses which all of the above listed instances could be classified under this category
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