Travel and Entertainment. Monique is a self-employed manufacturer\'s representat

Question

Travel and Entertainment. Monique is a self-employed manufacturer's representative (i.e., an independent contractor) who solicits business for numerous clients and receives a com mission based on sales. She incurs the following expenditures during the current year: Airfare and lodging while away from home overnight Business meals while traveling at $ 4,000 which business is discussed Local transportation costs for automobile 1,000 parking, tolls, etc. (business-related) Commuting expenses Local entertainment of customers 2,000 1,000 2,000 $10,000 Total a. Which of the expenditures listed above (if any) are deductible by Monique? b. Are each of these items classified as for AGI or from AGI deductions? c. How would your answers to Parts a and b change if Monique were an employee rather than self-employed and none of the expenses were reimbursed by her employer?

Explanation / Answer

A. Airfare and Lodging               $4,000 Business meals 1000 Local Transportation 2000 Total deductible expenses $7000 Airfare and Lodging, Business meals and Local Transportation are all deductible by Monique B. These are classified as for AGI C. The answer would change as it will change to form AGI. It will be adjusted after calculating AGI

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