Allison,who is single,incurred $4,000 for unreimbursed employee expenses,$10,000 for mortgage interest and real estate taxes on her home,and $500 for investment counseling fees.Allison's AGI is $80,000.Allison's allowable deductions from AGI are (after limitations have been applied)
A)$10,500.
B)$12,900.
C)$14,000.
D)$14,500.

Question

Quizplus · Accepted Answer

B)Only the mortgage interest and taxes are allowable deductions not subject to the 2% floor.Unreimbursed employee expenses and investment fees are miscellaneous itemized deductions subject to the 2% nondeductible floor.$10,000 + [(4,000 + $500)- $1,600] = $12,900.

Allison,who Is Single,incurred $4,000 for Unreimbursed Employee Expenses,$10,000 for Mortgage