Explore BrainMass

Explore BrainMass

    Monique travel & entertainment: for AGI or from AGI

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Monique is a self-employed manufacturer's representative who solicits business for clients and receives a commission based on sales. She incurs the following expenditures during the current year:

    Airfare and lodging while away from home overnight $ 4,000
    Business meals while traveling at which business is discussed 1,000
    Local transportation costs for automobile,parking, tolls, etc. (business-related) 2,000
    Commuting expenses 1,000
    Local entertainment of customers 2,000
    Total: 10,000

    a. Which of the expenditures listed above (if any) are deductible by Monique?
    b. Are each of these items classified as for AGI or from AGI deductions?
    c. How would your answers to Parts a and b change if Monique were an employee rather than self-employed and none of the expenses were reimbursed by her employer?

    © BrainMass Inc. brainmass.com June 3, 2020, 9:49 pm ad1c9bdddf
    https://brainmass.com/business/accounting/monique-travel-entertainment-for-agi-or-from-agi-200773

    Solution Preview

    a. As a self employed person, Monique will report her earnings and expenses on Schedule C. The deductible expenses are:

    Airfare and lodging while away from home overnight = $4,000
    Business meals while traveling at which business is discussed 1,000 x 50% = $500
    Local transportation costs for automobile, parking, tolls, etc. (business-related) = ...

    Solution Summary

    The solution clearly explains the difference in the type of expenses allowable for AGI and from AGI. Non-deductible or limited deductions are also shown.

    $2.19

    ADVERTISEMENT