Fred's employer dispatched him on a business trip from the Dallas headquarters to New York this year. During the trip Fred incurred the following unreimbursed expenses:
What is the amount of Fred's deduction before the application of any AGI limitations?

Question

Fred's employer dispatched him on a business trip from the Dallas headquarters to New York this year. During the trip Fred incurred the following unreimbursed expenses: 
What is the amount of Fred's deduction before the application of any AGI limitations?

Quizplus · Accepted Answer

The total unreimbursed expenses incurred by Fred during the business trip amount to $2,920 ($1,500 + $700 + $100 + $320 + $300). However, the meals are subject to a 50% deduction limitation, which reduces the deductible amount to $2,570 ($2,920 - 0.5 x $400). This is the amount of Fred's deduction before the application of any AGI limitations.

Fred's Employer Dispatched Him on a Business Trip from the Dallas