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

Question

Quizplus · Accepted Answer

Tax preparation fees are deductible as a miscellaneous itemized deduction subject to a 2% floor. In this case, the Chen Trust incurred $2,000 in tax preparation fees, which is deductible only to the extent that it exceeds 2% of the trust's adjusted gross income (AGI). Therefore, Chen's deduction for tax preparation fees is $0 because the $2,000 expense does not exceed the 2% threshold.

The Chen Trust Incurred the Following Items During the Year