where_ to_deduct_expenses

where_ to_deduct_expenses - employee must return excess...

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Where to Deduct Expenses? Employee vs. Self-Employed I. Where to deduct business-related expenses – in general A. FOR AGI (Schedule C) – self-employed taxpayer or independent contractor B. FROM AGI (Schedule A – subject to 2% limitation and standard deduction) 1 unreimbursed employee expenses 2. reimbursed employee expenses under a nonaccountable plan II. Two types of employer reimbursement plans A. Accountable plan 1. must have two elements substantiation – record keeping by employee
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Unformatted text preview: employee must return excess reimbursement 2. tax treatment a net wash reimbursement is excluded from gross income expenses are not deductible by employee B. Nonaccountable plan 1. fails at least one test no substantiation, or does not require return of excess 2. tax treatment reimbursement is included in gross income expenses are miscellaneous itemized deductions (from AGI) subject to 2% floor and 50% disallowance for meals & entertainment...
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This note was uploaded on 03/03/2010 for the course TAX 6845 taught by Professor Kelliher,c during the Spring '08 term at University of Central Florida.

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