1. Amber is a self-employed tax attorney. She and Jon, her employee, attend a co

Question

1. Amber is a self-employed tax attorney. She and Jon, her employee, attend a conference in Dallas sponsored by the American Institute of CPAs. The following expenses are incurred during the trip.
                                                                                                          Amber       Jon

Conference registration                                                                         $500        $500
Airfare                                                                                                   900         600
Taxi fare                                                                                                 75           0
Lodging in Dallas                                                                                    700          300

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

Explanation / Answer

a) total expenses = 500+500+900+600+300 = $2800 this expenses are formed other than as employee so AGI (adjusted gross income) = gross income - above expenses = gross income - 2500 so AGI will be reduced by $2800 b) as answer to part a will change if American bar association had sponsered conference

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