Bruce is employed as an executive and his wife, Marie, is a self-employed realtor.Besides Bruce's salary, Bruce and Marie own a warehouse that they rent to a local business for storage. This year they paid $1,250 for electric service in the warehouse. Marie also paid self-employment tax of $6,200 and Bruce had $7,000 of Social Security taxes withheld from his pay. Marie paid $45 fee to rent a safe deposit box to storerecords associated with her realty operation. Which of the following is a true statement?

Question

Quizplus · Accepted Answer

The safe deposit fee and the electric bill are deductible for AGI.

The self-employment tax is deductible, but not for AGI. It is deducted as an itemized deduction on Schedule A.

One-half of the Social Security tax withheld by an employer is deductible for AGI. However, in this case, Bruce had the Social Security tax withheld, so it is not deductible for AGI.

Therefore, the correct choice is B.

Bruce Is Employed as an Executive and His Wife, Marie