27. Bill would like some tax benefits for his investment expenses incurred this

Question

27. Bill would like some tax benefits for his investment expenses incurred this year. His AGI is $189,000. Currently, his expenses consist of: (1) $900 investment advice fees, (2) $1,400 unreimbursed employee business expenses (a miscellaneous itemized deduction), and (3) $500 tax return preparation fees. How much more, if any, must Bill spend for investment expenses this year before he receives any tax benefit?

Multiple Choice

More than $980.

Zero, Bill is already receiving a benefit.

More than $900.

None of the choices are correct.

More than $500.

Explanation / Answer

A) More than $980.

$189,000 x 0.02 = $3,780

Expenses incurred = $900 + $1,400 + $500 = $2,800

Bill to be spend = $3,780 - $2,800 = $980

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