Sarah incurred employee business expenses of $5,000 consisting of $3,000 business meals and $2,000 customer entertainment.She provided an adequate accounting to her employer's accountable plan and received reimbursement for one-half of the total expenses.How much of the meals and entertainment will be deductible by Sarah without consideration of the 2% of AGI limit?

Question

Quizplus · Accepted Answer

B)$3,000 + $2,000 = $5,000 total expenses × .50 reimbursed = $2,500 unreimbursed × .50 = $1,250.

Sarah Incurred Employee Business Expenses of $5,000 Consisting of $3,000