Wang,a licensed architect employed by Skye Architects,incurred the following unreimbursed expenses this year: Wang's AGI is $75,000.What is his net deduction for miscellaneous itemized deductions?

Question

Wang,a licensed architect employed by Skye Architects,incurred the following unreimbursed expenses this year:  Wang's AGI is $75,000.What is his net deduction for miscellaneous itemized deductions?

Quizplus · Accepted Answer

Miscellaneous itemized deductions are deductible only to the extent that they exceed 2% of a taxpayer's adjusted gross income (AGI). In this case, Wang's AGI is $75,000, so his 2% threshold is $1,500. As his unreimbursed expenses only total $800, he does not meet the threshold and therefore cannot claim a net deduction for miscellaneous itemized deductions. The correct answer is therefore C, $0.

Wang,a Licensed Architect Employed by Skye Architects,incurred the Following Unreimbursed