Answered

Get insightful responses to your questions quickly and easily on IDNLearn.com. Ask your questions and receive reliable, detailed answers from our dedicated community of experts.

Simon lost $7,100 gambling this year on a trip to Las Vegas. In addition, he paid $2,730 to his broker for managing his $273,000 portfolio and $500 to his accountant for preparing his tax return. In addition, Simon incurred $3,390 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).

Sagot :

Answer:

The Deductible amount = $0

Explanation:

The Deductible amount = $0

Reason -

Gambling losses are deductible to extent of winnings. As there is no winning, loss of $7,100 is not deductible.

Simon paid $2,730 to his broker for managing his portfolio and $500 to his accountant for preparing his tax return.

Both investment fees and tax preparation fees were in the past (before 2018) allowed under miscellaneous itemized deductions to the extent the total miscellaneous itemized deductions exceeded 2 percent of taxpayer's adjusted gross income.

However, in 2018 miscellaneous itemized deductions are no longer available.

Hence for 2018 investment fees and tax preparation fees are not deductible.

Transportation Cost of $3,390 for commuting back and forth from home to employer's office is not deductible.

As per IRS commuting expenses are personal expense.

As such:

Deductible amount = $0

We are delighted to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Your search for answers ends at IDNLearn.com. Thanks for visiting, and we look forward to helping you again soon.