West's adjusted gross income was $90,000. During the current year he incurred and paid the following: None of the expenses were reimbursed. Assuming he can itemize deductions, how much should West claim as miscellaneous itemized deductions (after limitations have been applied)?

Question

West's adjusted gross income was $90,000. During the current year he incurred and paid the following:  None of the expenses were reimbursed. Assuming he can itemize deductions, how much should West claim as miscellaneous itemized deductions (after limitations have been applied)?

Quizplus · Accepted Answer

The first three items are deductible-$2,000 + $1,000 + $1,500 = $4,500. The floor is $1,800 (.02 × $90,000), leaving a deduction of $2,700. The will preparation is a nondeductible personal expense.

West's Adjusted Gross Income Was $90,000