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IT HW ch9pt2 - tests and specific recordkeeping...

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Jordan Evans 9.17 9.25 a. two requirements to be treated as an accountable plan b. reimbursements are included in gross income expenses are deductible FOR agi c. reimbursements are included in the employee's gross income Entertainment expenses are not considered "directly related" if there are substantial distractions. for several reasons and mainly to avoid people taking advantage of entertainment expense deductyions. Congress enacted sec. 274 which is strictly a disallowance section and contains classification rules, restrictive
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Unformatted text preview: tests, and specific recordkeeping requirements. 1. Substantiation - employee must make an adequate accounting of expenses to his employer 2. return of excess reimbursement - within a reasonable period of time, the employee is required to return to the employer any portion of the reimbursement in excess of the substantiated expenses. expenses are deductible byu the employee as a MID and subject to a 2% floor...
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