Problem 9-43 (Algorithmic) (LO. 6, 9) Eric is a licensed commercial pilot who wo

Question

Problem 9-43 (Algorithmic) (LO. 6, 9) Eric is a licensed commercial pilot who works for Snipe Charter Jet Service. Typically, Eric, who lives near the airport, flies a charter out of Tupelo (MS) to either Las Vegas or Reno, spends several nights there, and then returns home with the same group. Snipe provides Eric with a travel allowance of $2,200 per month but requires no accountability. For the current calendar year, Eric had the following job-related expenses: Meals Lodging Transportation (taxis, limos) Uniforms Dry cleaning of uniforms Annual physical exanm $8,800 11,000 1,100 1,760 880 1,500 The uniforms are required to be worn on the job. The Federal Aviation Administration requires the annual physical exam for the maintenance of a commercial pilot's license How may Eric treat these expenses for Federal income tax purposes? Eric must include the travel allowance of in his gross income for the year. His allowable expenses of $ are deductible from AGI

Explanation / Answer

Eric must include the travel allowance of $ 26400 (2200*12) in his gross income for the year. his allowance expenses of $17960 ared deductible from AGI

meals 1800

lodging 11000

transportation 1100

uniforms 1760

dry cleaning 800

annual physical exam 1500

total allowable expenses 17960

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