Asked by cristian sanchez on Jul 12, 2024
Verified
Which of the following miscellaneous itemized deductions is not subject to the 2% of AGI threshold?
A) Tax preparation fees.
B) Gambling losses.
C) Unreimbursed employee expenses.
D) Investment expenses.
Gambling Losses
Money lost from betting and gambling, which can be claimed as a deduction to the extent of gambling income on a tax return.
AGI Threshold
The adjusted gross income level that triggers various tax benefits, deductions, and credits to phase out.
Tax Preparation Fees
The costs incurred for professional services to prepare and file taxes, which can sometimes be deducted from taxable income.
- Gain an understanding of the management of assorted itemized deductions, including those encumbered by the 2% of adjusted gross income cap.
Verified Answer
ZN
Zacchaeus NiccumJul 13, 2024
Final Answer :
B
Explanation :
Gambling losses are not subject to the 2% of AGI threshold and can be fully deducted up to the amount of gambling winnings reported on the tax return. All other miscellaneous itemized deductions, including tax preparation fees, unreimbursed employee expenses, and investment expenses, are subject to the 2% of AGI threshold.
Learning Objectives
- Gain an understanding of the management of assorted itemized deductions, including those encumbered by the 2% of adjusted gross income cap.