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

Wang's miscellaneous itemized deductions are subject to a 2% floor, which means that he can only deduct the amount that exceeds 2% of his AGI. In this case, that would be $1,500 (the total unreimbursed expenses) - 2% of $75,000 ($1,500) = $800. Therefore, Wang's net deduction for miscellaneous itemized deductions is $800.

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