Question

Tax 2018. Amos is a self-employed tax attorney. He and Monica, his employee, attend a conference in Dallas sponsored by the American Institute of CPAs. The following expenses are incurred during the trip:

	Amos	Monica
Conference registration	$  900	$900
Airfare	1,200	700
Taxi fares	100	–0–
Lodging in Dallas	750	300

1. Amos pays for all of these expenses. Calculate the effect of these expenses on Amos’s AGI.
2. Would your answer to part (a) change if the American Bar Association had sponsored the conference? Explain.

Answer 1

Answer:-

Given data:-

Amos expenses during the trip:-

For Lodging in Dallas he spent = $750

For Airfare he spent = $1200

For Conference registration he spent = $900

For Taxi fares he spent = $100

Monica expenses during the trip:-

For Lodging in Dallas she spent = $300

For Airfare she spent she spent =  $700

For Conference registration she spent = $900

For Taxi fares she spent = $0

Finding the effect of these expenses on Amos’s AGI:-

• Since Amos is sole owner at that point costs might be named a derivation for AGI
• He could deducted $2950( $900+ $1200+ $750+ $100) from his salary expense form.

Change if the American Bar Association had sponsored the conference explanation:-

• On the off chance that the American bar Association had supported the conference.Amos would not have the capacity to order the costs as a reasoning for AGI.
• The idea of the gathering isn't standard or important to his line of business.
• A gathering supported by the American organization of CPA's is viewed as a customary and vital cost of doing business that might be deducted for AGI.