West\'s adjusted gross income was $90,000. During the current year he incurred a

Question

West's adjusted gross income was $90,000. During the current year he incurred and paid the following:

Professional journals

$2,000

Tax return preparation fee

1,000

Dues to professional organizations

1,500

Fees for will preparation (no tax advice)

800

Life insurance premiums

1,400

None of the expenses were reimbursed. Assuming he can itemize deductions, how much should West claim as miscellaneous itemized deductions (after limitations have been applied)? (5)

Professional journals

$2,000

Tax return preparation fee

1,000

Dues to professional organizations

1,500

Fees for will preparation (no tax advice)

800

Life insurance premiums

1,400

Explanation / Answer

Solution.

The first three items are deductible.

$2,000 + $1,000 + $1,500 = $4,500.

The floor is $1,800 (.02 × $90,000),

leaving a deduction of $2,700.

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