The Zhang Trust incurred the following items during the year. What is Zhang's deduction for the tax preparation fees?

Question

The Zhang Trust incurred the following items during the year.  What is Zhang's deduction for the tax preparation fees?

Quizplus · Accepted Answer

Tax preparation fees are deductible as a miscellaneous itemized deduction on Schedule A subject to a 2% of adjusted gross income (AGI) floor. The AGI for the Zhang Trust is not given, but assuming it is high enough to exceed the 2% floor, the deduction for tax preparation fees would be $4,000 (10% of $40,000). Therefore, the correct answer is B.

The Zhang Trust Incurred the Following Items During the Year