where_ to_deduct_expenses

where_ to_deduct_expenses - records (receipts) employee...

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Where to Deduct Business Expenses? Employee vs. Self-Employed I. Where to deduct business-related expenses – in general A. Schedule C (FOR AGI) – self-employed taxpayers and independent contractors B. Schedule A ( FROM AGI) – subject to 2% limitation and the standard deduction 1 unreimbursed employee expenses 2. reimbursed employee expenses under a nonaccountable plan II. There are two general types of employer reimbursement plans A. Accountable plans 1. must have two elements substantiation – employee must submit or maintain adequate
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Unformatted text preview: records (receipts) employee must return any excess reimbursement 2. tax treatment a net wash reimbursement is excluded from gross income expenses are not deductible by employee B. Nonaccountable plans 1. fails at least one test no substantiation, or does not require return of excess funds 2. tax treatment reimbursement is included in gross income expenses are miscellaneous itemized deductions (from AGI deductions) subject to 2% floor and 50% disallowance for meals & entertainment...
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This note was uploaded on 09/09/2011 for the course TAX 6845 taught by Professor Kelliher,c during the Fall '08 term at University of Central Florida.

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