Austin incurs $3,600 for business meals while traveling for his employer, Tex, Inc. Austin is reimbursed in full by Tex pursuant to an accountable plan. What amounts can Austin and Tex deduct?

Question

Quizplus · Accepted Answer

The taxpayer (Tex Inc.) who ultimately pays the expenses is subject to the 50% cutoff. $3,600 × .50 = $1,800. Austin is fully reimbursed so he does not deduct anything.

Austin Incurs $3,600 for Business Meals While Traveling for His