In 2017, Theo, an employee, had a salary of $30,000 and experienced the following losses:
Determine the amount of Theo's itemized deduction from these losses.

Question

In 2017, Theo, an employee, had a salary of $30,000 and experienced the following losses: ​
 Determine the amount of Theo's itemized deduction from these losses.

Quizplus · Accepted Answer

The losses depicted in the image include a loss on the sale of personal property, casualty/theft losses, and losses from Ponzi-type investment schemes. However, for an employee, these types of losses are considered miscellaneous itemized deductions subject to a 2% AGI threshold. Since Theo's AGI is $30,000, he would need to exceed $600 in miscellaneous itemized deductions in order to claim any deduction. Therefore, the answer cannot be A, B, C, or D since each option assumes that Theo will have some itemized deduction. The correct answer is E - None of the above.

In 2017, Theo, an Employee, Had a Salary of $30,000