Len incurs $5000 of deductible moving expenses in the current year and is fully reimbursed by his employer i

Asked by bizgrad
Dated: 9th Jun'18 11:37 AM
Bounty offered: $3.00

Len incurs $5000 of deductible moving expenses in the current year and is fully reimbursed by his employer in the same year

a. How are the expense deduction and the reimbursement reported on Len's tax return if he uses the standard deduction?

b. What tax consequences occur if the reimbursement is $5000 but only $3000 of the $5000 of moving expenses are tax deductible?

a. How are the expense deduction and the reimbursement reported on Len's tax return if he uses the standard deduction?

A. Len's moving expenses are deductible for AGI so that it does not matter whether Len uses the standard deduction the $5,000 reimbursement would offset

The $5,000 of moving expenses Thus no amount would be reported on Len's tax return

B. Len's moving expenses are deductible from AGI so that it does not matter whether Len uses the standard deduction the $5 000 reimbursement would

Offset the $5,000 of moving expenses thus no amount would be reported on Len's tax return

C. Len's moving expenses are not deductible for AGI if Len uses the standard deduction the $5 000 reimbursement would be included in Len's gross income on his tax return

D. Len's moving expenses are deductible for AGI only if Len uses the standard deduction The $5,000 reimbursement would offset the S5.000 of moving expenses Thus no amount would be reported on Len's tax return

b. What tax consequences occur if the reimbursement is $5,000 but only $3 000 of the $5 000 of moving expenses are tax deductible?

O A. The reimbursement for moving expenses of $5,000 must be included in Len's gross income

O B. The reimbursement for nondeductible moving expenses of $2 000 must be included in Len's gross income

O C. The reimbursement for moving expenses of $3,000 must be included in Lens gross income

O D. The S3 000 reimbursement would offset the $3 000 of moving expenses Thus no amount would be reported on Len's tax return

Len incurs $5000 of deductible moving expenses in the current year and is fully reimbursed by his employer i
Answered by bizgrad
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Dated: 9th Jun'18 11:37 AM
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