Mike incurs the following employment-related expenses in 2017: Actual automobile expenses $ 2,500 Moving expenses (deductible under
Question:
Mike incurs the following employment-related expenses in 2017:
Actual automobile expenses | $ 2,500 |
Moving expenses (deductible under Sec. 217) | 4,000 |
Entertainment expenses | 1,500 |
Travel expenses (including $500 of business meals) | 2,500 |
Professional dues and subscriptions | 500 |
Total | $ 11,000 |
Mike's AGI is $120,000 before any of the above expenses are deducted. None of the expenses listed above are reimbursed by Mike's employer. He has no other miscellaneous itemized deductions and does not use the standard deduction.
a. What is the amount of Mike's deduction for employment-related expenses for 2017? How would your answers change if the tax year were 2018 rather than 2017?
b. How are these items reported in Mike's tax return?
Step by Step Answer:
Federal Taxation 2019 Individuals
ISBN: 9780134739670
32nd Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson