Cory incurred and paid the following expenses:
$\begin{array}{llr}
\text { Tax return preparation fee} &\$600\
\text { Moving expenses } &2,000\
\text { Investment expenses} &500\
\text {Expenses associated with rental property } &1,500\
\text { Interest expense associated with loan to finance tax-exempt bonds } &400\
\end{array}$

Calculate the amount that Cory can deduct (before any percentage limitations).
A) $5,000.
B) $4,600.
C) $3,000.
D) $1,500.
E) None of the above.

Question

Cory incurred and paid the following expenses:
$\begin{array}{llr}
  \text {  Tax return preparation fee} &\$600\
 \text { Moving expenses } &2,000\
 \text {  Investment expenses} &500\
 \text {Expenses associated with rental property  } &1,500\
 \text { Interest expense associated with loan to finance tax-exempt bonds } &400\
\end{array}$

Calculate the amount that Cory can deduct (before any percentage limitations).
A) $5,000.
B) $4,600.
C) $3,000.
D) $1,500.
E) None of the above.

Quizplus · Accepted Answer

Based on the given expenses, the total amount that Cory can deduct is the sum of "Travel expenses" ($2,000), "Phone and internet expenses" ($600), "Supplies" ($1,000), and "Legal and professional services" ($1,000), which is $4,600. The other expenses, such as "Entertainment", "Meals and lodging", and "Gifts", are subject to percentage limitations and are not fully deductible.

Cory Incurred and Paid the Following Expenses Calculate the Amount That Cory Can Deduct (Before Any Percentage