Wang,a licensed architect employed by Skye Architects,incurred the following unreimbursed expenses this year: Wang's AGI is $75,000.What is his net deduction for miscellaneous itemized deductions?

Question

Wang,a licensed architect employed by Skye Architects,incurred the following unreimbursed expenses this year:  Wang's AGI is $75,000.What is his net deduction for miscellaneous itemized deductions?

Quizplus · Accepted Answer

Miscellaneous itemized deductions are subject to a 2% AGI floor. In this case, 2% of $75,000 is $1,500. Wang's total unreimbursed expenses amounted to $2,300, but since it is below the 2% AGI floor, his net deduction would be $800 ($2,300 - $1,500). Therefore, the correct answer choice is C.

Wang,a Licensed Architect Employed by Skye Architects,incurred the Following Unreimbursed