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.
​

Quizplus · Accepted Answer

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 CoRequires Its Employees to Adequately Account for All Reimbursed Business