George a single employee with AGI of $68,000 before consideration of the items b

Question

George a single employee with AGI of $68,000 before consideration of the items below, incurred the following transactions during 2017:

Unreimbursed employee transportation expenses for business trip

$1,500

Unreimbursed registration fees for business conference                                   

900

Mortgage interest paid

3,400

Unreimbursed employee business-related meals and entertainment                  

700

Alimony paid

1,300

Unreimbursed country club dues (used 60% for business)

800

Charitable contributions

3,500

Local meals eaten alone during regular business hours after visiting client        

400

Real estate taxes paid

1,250

Commuting to place of business                                                                                                                                      

500

Gambling winnings

1,450

Gambling losses

3,300

Tax return preparation fees

100

Safe deposit box rental for stock certificates

90

Qualified moving expenses

2,500

What is George’s AGI for 2017?

What is George’s net miscellaneous itemized deduction for 2017 (total of line 21 through line 28 on Schedule A)?

What is George’s total itemized deductions for 2017 (line 29 of Schedule A)?                                                                    

Unreimbursed employee transportation expenses for business trip

$1,500

Unreimbursed registration fees for business conference                                   

900

Mortgage interest paid

3,400

Unreimbursed employee business-related meals and entertainment                  

700

Alimony paid

1,300

Unreimbursed country club dues (used 60% for business)

800

Charitable contributions

3,500

Local meals eaten alone during regular business hours after visiting client        

400

Real estate taxes paid

1,250

Commuting to place of business                                                                                                                                      

500

Gambling winnings

1,450

Gambling losses

3,300

Tax return preparation fees

100

Safe deposit box rental for stock certificates

90

Qualified moving expenses

2,500

Explanation / Answer

1. Calculation of AGI

B. Net Miscellaneous itemized Deduction

The same are allowed over 2% of the AGI. 65650 x 2% = 1313. Therefore net miscellaneous deduction is $4740 - 1313 = $3,427

Salary 68,000 Gambling winning (Line 21 as other income) 1,450 Total Income 69,450 Less: Alimony Paid 1,300 Qualified Moving Expense 2,500 AGI 65,650

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