Bob Brain files a single tax return and decides to itemize his deductions. Bob's income for the year consists of $75,000 of salary, $3,000 long-term capital gain, and $1,500 interest income. Bob's expenses for the year consist of $800 in investment advice feesand $250 in tax return preparation fees. What is Bob's investment expense deduction?
A)$0.
B)$800.
C)$250.
D)$1,050.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Under the Tax Cuts and Jobs Act of 2017, miscellaneous itemized deductions, including investment advice fees and tax preparation fees, are not deductible for tax years 2018 through 2025. Therefore, Bob cannot deduct his investment advice fees or tax preparation fees, making his investment expense deduction $0.

Bob Brain Files a Single Tax Return and Decides to Itemize