Simon lost $5,550 gambling this year on a trip to Las Vegas. In addition, he pai

Question

Simon lost $5,550 gambling this year on a trip to Las Vegas. In addition, he paid $2,100 to his broker for managing his $210,000 portfolio and $1,695 to his accountant for preparing his tax return. In addition, Simon incurred $3,270 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, in the following situation:

a. Simon's AGI is $40,000.

Explanation / Answer

Gambling losses are only deductible to the extent of gambling winnings.

Thus, Simon may deduct $2,995 of these expenses ($2,100 + $1,695

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.