Question

In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) neither deductible for nor from AGI before considering income limitations or the standard deduction. (Leave no answers blank. Enter zero if applicable.)

a. Fran spent $90 for uniforms for use on her job. Her employer reimbursed her for $75 of this amount under an accountable plan (and did not report the reimbursement as wages).

Deductible for AGI $_________

Deductible from AGI. $_________

Not deductible __________

b. Timothy, a plumber employed by ACE Plumbing, spent $65 for small tools to be used on his job, but he was not reimbursed by ACE.

Deductible for AGI $_________

Deductible from AGI. $_________

Not deductible __________

c. Jake is a perfume salesperson. Because of his high pay, he receives no allowance or reimbursement from his employer for advertising expenses even though his position requires him to advertise frequently. During the year, he spent $2,200 on legitimate business advertisements.

Deductible for AGI $_________

Deductible from AGI. $_________

Not deductible __________

d. Trey is a self-employed, special-duty nurse. He spent $120 for uniforms.

Deductible for AGI $_________

Deductible from AGI. $_________

Not deductible __________

e. Mary, a professor at a community college, spent $340 for magazine subscriptions. The magazines were helpful for her research activities, but she was not reimbursed for the expenditures.

Deductible for AGI $_________

Deductible from AGI. $_________

Not deductible __________

f. Wayne lost $325 on the bets he made at the race track, but he won $57 playing slot machines

Deductible for AGI $_________

Deductible from AGI. $_________

Not deductible __________

Answer 1

Part A

Deductible for AGI	0
Deductible from AGI	15
Not deductible	0

Unreimbursed employee business expense of $15 (90-75) will be included in the itemized deductions as employee business expense

Part B

Deductible for AGI	0
Deductible from AGI	65
Not deductible	0

Unreimbursed employee business expense of $65 (65-0) will be included in the itemized deductions as employee business expense

Part C

Deductible for AGI	0
Deductible from AGI	2200
Not deductible	0

Unreimbursed employee business expense of $2200 (2200-0) will be included in the itemized deductions as employee business expense

Part D

Deductible for AGI	120
Deductible from AGI	0
Not deductible	0

Special duty uniform is treated as the trade expense.

Part E

Deductible for AGI	0
Deductible from AGI	340
Not deductible	0

Unreimbursed employee business expense of $340 (340-0) will be included in the itemized deductions as employee business expense

Part F

Deductible for AGI	0
Deductible from AGI	57
Not deductible	268

Bet or gambling loss deducted up to the level of winnings. Thus $268 (325-57) is not deductible