Phoebe's AGI for the current year is $120,000. Included in this AGI is $100,000 salary and $20,000 of interest income. In earning the investment income, Phoebe paid investment interest expense of $30,000. She also incurred the following expenditures subject to the 2% of AGI limitation:
Investment expenses:
$\begin{array}{ll}
\text { Subscriptions to investment journals } & \$ 500 \
\text { Investment counseling } & 1,500 \
\text { Safe-deposit box rental for stock certificates } & 100
\end{array}$
Non-investment expenses:
$\begin{array}{llr}
\text { Unreimbursed employee business expenses } &\$1,800\
\text { Taxreturn preparation fees(non-business-related) } &500\

\end{array}$
What is Phoebe's investment interest expense deduction for the year?

Question

Phoebe's AGI for the current year is $120,000. Included in this AGI is $100,000 salary and $20,000 of interest income. In earning the investment income, Phoebe paid investment interest expense of $30,000. She also incurred the following expenditures subject to the 2% of AGI limitation:
Investment expenses:
 $\begin{array}{ll}
\text { Subscriptions to investment journals } & \$ 500 \
\text { Investment counseling } & 1,500 \
\text { Safe-deposit box rental for stock certificates } & 100
\end{array}$
 Non-investment expenses:
 $\begin{array}{llr}
  \text { Unreimbursed employee business expenses } &\$1,800\
 \text { Taxreturn preparation fees(non-business-related)  } &500\

\end{array}$
 What is Phoebe's investment interest expense deduction for the year?

Quizplus · Accepted Answer

The Answer of Phoebe's AGI for the current year is $120,000. Included in this AGI is $100,000 salary and $20,000 of interest income. In earning the investment income, Phoebe paid investment interest expense of $30,000. She also incurred the following expenditures subject to the 2% of AGI limitation:
Investment expenses:
 $\begin{array}{ll}
\text { Subscriptions to investment journals } & \$ 500 \
\text { Investment counseling } & 1,500 \
\text { Safe-deposit box rental for stock certificates } & 100
\end{array}$
 Non-investment expenses:
 $\begin{array}{llr}
  \text { Unreimbursed employee business expenses } &\$1,800\
 \text { Taxreturn preparation fees(non-business-related)  } &500\

\end{array}$
 What is Phoebe's investment interest expense deduction for the year?

Phoebe's AGI for the Current Year Is $120,000 Non-Investment Expenses