Question

Problem 6-46 (LO 6-2)

Simon lost $9,650 gambling this year on a trip to Las Vegas. In addition, he paid $2,270 to his broker for managing his $227,000 portfolio, and $1,675 to his accountant for preparing his tax return. In addition, Simon incurred $2,530 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).

Deductible amount

Answer 1

Answer : Deductible Amount   = $0

Note: *Gambling Loss is not deductible . Gambling income is deductible subject to winning, as there is no winning, Gambling loss should not be deductable and hence there is no deduction in amount. * Expense relation to personal are not deductible and hence communication expense is not deductable. * Brokerage and Expense for Filing tax return are not at all Deductible Expense