The Zhang Trust incurred the following items during the year. What is Zhang's deduction for the tax preparation fees?

Question

The Zhang Trust incurred the following items during the year.  What is Zhang's deduction for the tax preparation fees?

Quizplus · Accepted Answer

The deduction for tax preparation fees is subject to a 2% of adjusted gross income (AGI) limitation. Based on the information provided, we do not have Zhang Trust's AGI. Therefore, we cannot calculate the exact deduction. However, from the given options, the maximum deduction possible is $4,000 (2% of $200,000). Therefore, the answer is B.

The Zhang Trust Incurred the Following Items During the Year