Victor is a sales representative for Valley Winery. Victor receives a monthly travel allowance from Valley to cover his travel costs (transportation, food, lodging, etc.). If Victor is required to account to Valley for the use of the travel advance and to return any excess travel advance
i.To the extent Victor is reimbursed for less than his costs, part of his expenses are deducted for AGI and part are deducted from AGI.II.Victor must include the travel allowance in his gross income. His actual costs are deductible from AGI, subject to all applicable limits on such deductions.

Question

Victor is a sales representative for Valley Winery. Victor receives a monthly travel allowance from Valley to cover his travel costs (transportation, food, lodging, etc.). If Victor is required to account to Valley for the use of the travel advance and to return any excess travel advance
i.To the extent Victor is reimbursed for less than his costs, part of his expenses are deducted for AGI and part are deducted from AGI.II.Victor must include the travel allowance in his gross income. His actual costs are deductible from AGI, subject to all applicable limits on such deductions.
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Quizplus · Accepted Answer

If Victor is required to account for the travel advance and return any excess, the reimbursement is not included in his gross income. His expenses are deductible for AGI to the extent they are reimbursed, and any excess expenses are deductible from AGI.

Victor Is a Sales Representative for Valley Winery