Which of the Following Can Be Claimed as a Deduction

question 72

Multiple Choice

Which of the following can be claimed as a deduction for AGI?

• A) Personal casualty losses.
• B) Investment interest expenses.
• C) Medical expenses.
• D) Property taxes on personal use real estate.
• E) None of the above.

---

Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues, indicating the company's financial health over a specific period.

Preparation Costs

Expenses incurred in getting assets or products ready for use or sale.

Sales Tax

A government-imposed tax on sales of goods and services, collected by retailers at the point of sale and then passed on to the government.

Transportation Costs

Expenses incurred in the process of moving goods from one location to another, including freight, shipping, and handling fees.