Steven Is a Representative for a Textbook Publishing Company

question 1082

Multiple Choice

Steven is a representative for a textbook publishing company. Steven attends a convention which will also be att by many potential customers. During the week of the convention, Steven incurs the following costs in attending conference and taking potential customers to lunch and dinner to discuss book sales. Having recently been to a company seminar on tax laws, Steven makes sure that business is discussed at the various meals. Steven is reimbursed $2,000 by his employer under an accountable plan. Steven's AGI for 2018 is $50,000, and he does itemize deductions. For tax purposes, how will Steven treat the $2,000 partial reimbursement and the $2,500 of unreimbursed expenses?

• A) Reimbursement- include in income; unreimbursed expenses- deduct within itemized deductions, after 50% reduction for meal portion
• B) Reimbursement- include in income; unreimbursed expenses- no deduction allowed
• C) Reimbursement- exclude from income; unreimbursed expenses- deduct within itemized deductions, after 50% reduction for meal portion
• D) Reimbursement- exclude from income; unreimbursed expenses- no deduction allowed