Bob Brain files a single tax return and decides to itemize his deductions. Bob's income for the year consists of $75,000 of salary, $3,000 long-term capital gain, and $1,500 interest income. Bob's expenses for the year consists of $800 investment advice fees, $700 unreimbursed employee business expenses (a miscellaneous itemized deduction) , and $250 tax return preparation fees. What is Bob's actual deduction for miscellaneous itemized deductions?
A) Zero; Bob's investment expenses do not exceed two percent of AGI floor.
B) $1,590
C) $1,500
D) $1,750
E) None of these
Correct Answer:
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