Charles has AGI of $94,000 during the year and the following expenses related to
ID: 2446086 • Letter: C
Question
Charles has AGI of $94,000 during the year and the following expenses related to his employment:
Charles is reimbursed $14,000 under his employer's accountable plan.
Determine what percentage of the reimbursement applies to meals and entertainment. (Round the percent answer to nearest whole percent. Use this value in subsequent computations.) ____________ %
Determine Charles's unreimbursed deduction. If an amount is zero, enter "0".
Determine Charles's total deduction (after any limitations) from AGI.
$ ___________
Charles has AGI of $94,000 during the year and the following expenses related to his employment:
Lodging while in travel status $5,000 Meals during travel 4,000 Business transportation 6,000 Entertainment of clients 3,800 Professional dues and subscriptions 800Charles is reimbursed $14,000 under his employer's accountable plan.
Determine what percentage of the reimbursement applies to meals and entertainment. (Round the percent answer to nearest whole percent. Use this value in subsequent computations.) ____________ %
Determine Charles's unreimbursed deduction. If an amount is zero, enter "0".
Other ThanMeals and
Entertainment
Meals and
Entertainment Lodging $___________ Transportation ____________ Professional dues and subscriptions ____________ Meals and entertainment $_________ Total expenses $___________ $_________ Less: Reimbursement (deductible for AGI) ____________ __________ Unreimbursed portion $___________ $________ Less: Cutback adjustment ____________ _________ Unreimbursed deduction from AGI $__________ $________
Determine Charles's total deduction (after any limitations) from AGI.
$ ___________
Explanation / Answer
Answer:-
Determine what percentage of the reimbursement applies to meals and entertainment
Total reimbursement:-$14,000
Percentage of reimbursement applied to meals and entertainment= ($4,000+$3,800)/14,000 = 55.71%
Determine Charles's unreimbursed deduction. If an amount is zero, enter "0".
Determine Charles's total deduction (after any limitations) from AGI
Deductions from AGI:
Lodging while in travel status $5,000
Meals during travel (.5 * $4,000) 2,000
Entertainment of clients (.5 * $3,800) 1,900
Business transportation 6,000
Deductions for AGI:
Professional dues and subscriptions $800
Reimbursement under accountable plan 14,000
Other than Meals and Entertainment Meals and Entertainment Lodging $5,000 Transportation $6,000 0 Professional dues and subscriptions 800 0 Meals and entertainment 0 $7,800 Total expenses $6,800 $7,800 Less: Reimbursement (deductible for AGI) -14,000 0 Unreimbursed portion ($7,200) $7,800 Less: Cutback adjustment 0 0 Unreimbursed deduction from AGI ($7,200) $7,800