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    Allison's allowable deductions from AGI

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    Allison, who is single, incurred $4,000 for unreimbursed employee expenses, $10,000 for mortgage interest and real estate taxes on her home, and $500 for investment counseling fees. Allison's AGI is $80,000. Allison's allowable deductions from AGI are (after limitations have been applied)
    A) $10,500.
    B) $12,900.
    C) $14,000.
    D) $14,500.

    Paul makes the following property transfers in the current year:
    - $22,000 cash to his wife
    - $34,000 cash to a qualified charity
    - $220,000 house to his son
    - $3,000 computer to an unrelated friend
    The total of Paul's taxable gifts, assuming he does not elect gift splitting with his spouse, subject to the unified transfer tax is
    A) $207,000.
    B) $223,000.
    C) $245,000.
    D) $279,000.

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    Solution Preview

    1. B -The unreimbursed employee expenses and the investment counseling fees are misc. expense deduction are not completely deductible ( at least to exceed 2% of the AGI) and the mortgage interest and real estate taxes on her home is ...

    Solution Summary

    The expert examines Allison's allowable deductions from AGI.