Homework SourseIssac has AGI of 73400 and incurred the following expenses H
Issac has AGI of $73,400 and incurred the following expenses. How much of the business and personal expenditures are deductible (after any limitations) either as miscellaneous itemized deductions or as other itemzied deductions?
Cost of uniforms required by his employer...... $535
Tax return preparation fees..... $600
Fee paid for a safe deposit box used to store papers and documents relatating to taxable income-producing investments.... $65
Job-hunting costs...$1000
Solution
Job hunting costs are not deductible. Uniforms, tax return preparation fee, and safe deposit box are deductible subject to 2% AGI floor limitation.
Deduction is:
No deduction allowable as allowable deductible expenses does not exceed 2% of AGI.
| Particulars | Amount | Amount |
| Uniforms | 535.00 | |
| Tax return preparation fee | 600.00 | |
| Safe deposit box | 65.00 | |
| Total deductions | 1,200.00 | |
| AGI | 73,400.00 | |
| 2% of AGI | 1,468.00 | 1,468.00 |
| Deduction amount | 0.00 |
