Shane, an employee, makes the following gifts, none of which are reimbursed: What amount of the gifts is deductible before application of the 2% of AGI floor for miscellaneous itemized deductions?
A) $125
B) $150
C) $75
D) $178

Question

Shane, an employee, makes the following gifts, none of which are reimbursed:  What amount of the gifts is deductible before application of the 2% of AGI floor for miscellaneous itemized deductions?
A) $125 
B) $150 
C) $75 
D) $178

Quizplus · Accepted Answer

$25 (assistant) + $100 (4 × $25 for customers) = $125. The gift to his manager is not deductible. Deductible gifts are limited to $25 per donee.

Shane, an Employee, Makes the Following Gifts, None of Which