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?
A)$0
B)$1,900
C)$800
D)$1,500

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?
A)$0 
B)$1,900 
C)$800 
D)$1,500

Quizplus · Accepted Answer

Miscellaneous itemized deductions are subject to a 2% of AGI floor, which means that only the amount exceeding 2% of Wang's AGI ($1,500) can be deducted. Therefore, the net deduction for miscellaneous itemized deductions is $800 ($2,300 - $1,500).

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