Austin incurs $3,600 for business meals while traveling for his employer,Tex,Inc.Austin is reimbursed in full by Tex pursuant to an accountable plan.What amounts can Austin and Tex deduct?

Question

Quizplus · Accepted Answer

A) The taxpayer (Tex Inc.) who ultimately pays the expenses is subject to the 50% cutoff. $3,600 × .50 = $1,800. Austin is fully reimbursed so he does not deduct anything.

Austin Incurs $3,600 for Business Meals While Traveling for His