Brees Co. requires its employees to adequately account for all reimbursed business expenses. Tracy, an employee of Brees Co. has AGI of $50,000 and submitted for reimbursement the following valid business expenses: What are the tax consequences if Brees reimburses Tracy $2,400? I. Tracy must report $2,400 of income. II. Tracy can deduct $2,400 of the expenses for AGI and $-0- as miscellaneous itemized deductions, after limitations.

Question

Brees Co. requires its employees to adequately account for all reimbursed business expenses. Tracy, an employee of Brees Co. has AGI of $50,000 and submitted for reimbursement the following valid business expenses:  What are the tax consequences if Brees reimburses Tracy $2,400? I. Tracy must report $2,400 of income. II. Tracy can deduct $2,400 of the expenses for AGI and $-0- as miscellaneous itemized deductions, after limitations.

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The Answer of Brees Co. requires its employees to adequately account for all reimbursed business expenses. Tracy, an employee of Brees Co. has AGI of $50,000 and submitted for reimbursement the following valid business expenses:  What are the tax consequences if Brees reimburses Tracy $2,400? I. Tracy must report $2,400 of income. II. Tracy can deduct $2,400 of the expenses for AGI and $-0- as miscellaneous itemized deductions, after limitations.

Brees Co Requires Its Employees to Adequately Account for All Reimbursed