Bob Brain Files a Single Tax Return and Decides to Itemize

question 71

Multiple Choice

Bob Brain files a single tax return and decides to itemize his deductions. Bob's income for the year consists of $75,000 of salary, $3,000 long-term capital gain, and $1,500 interest income. Bob's expenses for the year consists of $800 investment advice fees, $700 unreimbursed employee business expenses (a miscellaneous itemized deduction) , and $250 tax return preparation fees. What is Bob's actual deduction for miscellaneous itemized deductions?

• A) Zero; Bob's investment expenses do not exceed two percent of AGI floor.
• B) $1,590
• C) $1,500
• D) $1,750
• E) None of these

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Definitions:

Customer Relations

The management and maintenance of relationships between a business and its customers, focusing on communication and meeting customer needs.

Frontline Managers

Managers who directly supervise and support employees working on the core business activities of an organization.

Operating Employees

Workers who are directly involved in the day-to-day operations of an organization, typically responsible for executing tasks and processes.

External Environment

All outside factors and influences that impact an organization's decision-making process and overall success, including economic, legal, and technological changes.