Charles, a corporate executive, incurred business related, unreimbursed expenses in the current year as follows: Assuming that Charles itemizes his deductions, how much of these expenses should he deduct on his current year Schedule A, before considering the 2 percent of adjusted gross income limitation?

Question

Charles, a corporate executive, incurred business related, unreimbursed expenses in the current year as follows: Assuming that Charles itemizes his deductions, how much of these expenses should he deduct on his current year Schedule A, before considering the 2 percent of adjusted gross income limitation?
Charles, a corporate executive, incurred business related, unreimbursed expenses in the current year as follows: Assuming that Charles itemizes his deductions, how much of these expenses should he deduct on his current year Schedule A, before considering the 2 percent of adjusted gross income limitation? A) $600 B) $900 C) $1,500 D) $2,100 E) None of the above

Quizplus · Accepted Answer

Charles can deduct 100% of his unreimbursed business expenses since they are directly related to his job and he itemizes his deductions. The total of his unreimbursed expenses is $2,100, but he cannot deduct all of it. The deduction should be calculated based on the 2% of his adjusted gross income limitation. Since his AGI is not provided in the question, we cannot calculate the exact amount of the 2% threshold. However, we can assume that it is enough to deduct $1,500 ($2,100 - $600). Therefore, Charles can deduct $1,500 before considering the 2% threshold, which may further limit his deduction.

Charles, a Corporate Executive, Incurred Business Related, Unreimbursed Expenses in the Current