Tax Overview of Travel, Entertainment, Gift and Car Expenses.
Summary of Contents:
Travel expenses, tax home, meals, travel outside the US, conventions
Entertainment expenses, directly-related, associated, 50% limit
Business gift expenses
Local transportation, standard mileage, actual expenses, leasing a car
Reporting expenses, accountable and nonaccountable plans, rules for independent contractors, Form 2106 example
Sample Exam Questions:
34. John is an employee who receives payments under a nonaccountable plan. John can convert these amounts to payments under an accountable plan by voluntarily accounting to his employer for the expenses and voluntarily returning any excess reimbursements to his employer.
35. If your employer uses a car expense reimbursement method where they provide an allowance to you, and that allowance includes a combination of payments covering fixed and variable costs (such as a cents-per-mile rate plus a flat amount for fixed costs like depreciation and insurance), this method is known as:
A. Hybrid-per-mile method
B. An unallowable method
D. M & IE