Charles, a corporate executive, incurred business related, unreimbursed expenses in 2014 as follows:Entertainment $ 1,100Transportation $ 700Education $ 400Assuming that Charles itemizes his deductions, how much of these expenses should he deduct on his 2014 Schedule A, before considering the 2 percent of adjusted gross income limitation? a. $400b. $700c. $1,100d. $1,650e. None of the above

Question

Business

Royce Waters

26 January, 16:51

Charles, a corporate executive, incurred business related, unreimbursed expenses in 2014 as follows:Entertainment $ 1,100Transportation $ 700Education $ 400Assuming that Charles itemizes his deductions, how much of these expenses should he deduct on his 2014 Schedule A, before considering the 2 percent of adjusted gross income limitation? a. $400b. $700c. $1,100d. $1,650e. None of the above

+5

Answers (1)

Know the Answer?

Deangelo Garner · Answer 1

d. $1,650

Explanation:

The unreimbursed business expense are cash expenditures make by the employee which related to their job and aren't payback from the business

Charles unreimbursed expenses:

Entertainment $ 1,100

Transportation $ 700

Education $ 400

The IRS only allows for meals and entertainment a person a deduction up to 50%:

1,100 x 50% = 550

This make the total amount deductible for: 700 + 400 + 550 = 1,650