Simon lost $5,000 gambling this year on a trip to Las Vegas. In addition, he pai

Question

Simon lost $5,000 gambling this year on a trip to Las Vegas. In addition, he paid $2,000 to his broker for managing his $200,000 portfolio, and $1,500 to his accountant for preparing his tax return. In addition, Simon incurred $2,500 in transportation costs commuting back and forth from his home to his employer's office, which were not reimbursed. Calculate the amount of these expenses that Simon is able to deduct (assuming he itemizes his deductions). Answer is complete but not entirely correct. Deductible amount $ 3,500

Explanation / Answer

Gambling losses can only be adjusted againse gambling profit so it is not deductable.

2500 transportaion cost is also not deductible ( assumed personal)

but he will be allowed decution of 2000 paid to broker and 1500 paid to accountant.

Hence deductible amount = 2000 + 1500= 3500

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