Mary is an employee of ABC corporation and incurs $3,600 of unreimbursed employment-related travel and entertainment expenses during the current year. These business expenses include the following:
Airfare ……………………………………………………………$1,500
Taxi fare…………………………………………………………… 100
Meals eaten alone while away from home on business ………….. 300
Laundry ………………………………………………………….. 50
Lodging ………………………………………………………..… 650
Business meals with customers at which business is discussed …. 500
Entertainment of customers ……………………………………… 500
Total……………………………………………………………..$3,600
Mary also pays $1,000 of investment counseling fees and $500 of tax return preparation fees in the current year. Mary’s AGI is $70,000.
a. What is the total amount of Mary’s deductible expenses?
b. Are the deductible expenses classified as for AGI or from AGI?