Phoebe's AGI for the Current Year Is $120,000 Non-Investment Expenses

question 99

Essay

Phoebe's AGI for the current year is $120,000. Included in this AGI is $100,000 salary and $20,000 of interest income. In earning the investment income, Phoebe paid investment interest expense of $30,000. She also incurred the following expenditures subject to the 2% of AGI limitation:
Investment expenses:
$\begin{array}{ll}\text { Subscriptions to investment journals } & \$ 500 \\\text { Investment counseling } & 1,500 \\\text { Safe-deposit box rental for stock certificates } & 100\end{array}$
Non-investment expenses:
$\begin{array}{llr} \text { Unreimbursed employee business expenses } &\$1,800\\ \text { Taxreturn preparation fees(non-business-related) } &500\\\end{array}$
What is Phoebe's investment interest expense deduction for the year?

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