Shelley is employed in Texas and recently attended a two-day business conference in New Jersey.Shelley spent the entire time at the conference and documented her expenditures (described below).What amount can Shelley deduct as an employee business expense (before considering any miscellaneous itemized deduction limitations)? Alrfare to New Jer'sey $2,000
Meals 220
Lodging in New Jersey 450
Rental car 180
A) $2,850
B) $2,740
C) $1,850 if Shelley's AGI is $50,000
D) All of the expenses are deductible if Shelley is reimbursed under an accountable plan.
E) None of the expenses are deductible - only employers can deduct travel expenses.

Question

Shelley is employed in Texas and recently attended a two-day business conference in New Jersey.Shelley spent the entire time at the conference and documented her expenditures (described below).What amount can Shelley deduct as an employee business expense (before considering any miscellaneous itemized deduction limitations)? Alrfare to New Jer'sey                                                $2,000
Meals                                                                            220
Lodging in New Jersey                                                  450
Rental car                                                                      180
A) $2,850
B) $2,740
C) $1,850 if Shelley's AGI is $50,000
D) All of the expenses are deductible if Shelley is reimbursed under an accountable plan.
E) None of the expenses are deductible - only employers can deduct travel expenses.

Quizplus · Accepted Answer

Shelley can deduct the expenses related to the business conference as employee business expenses. This includes the airfare, lodging, and rental car expenses, but not the meals since they are only partially deductible (50%). Therefore, Shelley can deduct the following:

Airfare: $2,000
Lodging: $450
Rental car: $180
Meals (50%): $110

Total deductible expenses: $2,740.

Shelley Is Employed in Texas and Recently Attended a Two-Day