Assume the following expenses are properly deductible. Does the deduction fall under § 62, may it be claimed as a § 67(b) deduction, or does it fall into the Code's § 67(g) black hole for deductions?
Employee salesperson (not "outside") pays the cost of business transportation and is not reimbursed by the employer.
Same as (a), except that employer reimburses employee for exact cost incurred.
How should the employee treat the expenses and reimbursement on her return? What is the result for the employer?
What if the amount paid to the employee as reimbursement exceeds her actual expenses?
What if actual expenses exceed her reimbursement?
Same as (a), except that the employer, an individual, rather than the employee incurred the expense.
The employer pays the accountant $400 to prepare his federal income tax return, $150 of which is allocable to preparing the schedule related to the income from his sole proprietorship business.
Investor Higgins, who owns a substantial interest in X Co., incurs transportation, meals, and lodging expenses to attend X Co.'s annual shareholder meeting.
Investor Buffet, who has substantial stock holdings, rents an office, hires a staff, and incurs additional costs in relation to his investment activities.