Question: Simon lost $5,000 gambling this year on a trip to Las Vegas. In addition, he paid $2,000 to his broker for managing his $200,000 portfolio,

Simon lost $5,000 gambling this year on a trip to Las Vegas. In addition, he paid $2,000 to his for managing his $200,000 portfolio, and $1,500 to his accountant for preparing his tax return. In addition, Simon incurred $2,500 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 in each of the following situations:
a. Simon's AGI is $40,000.
b. Simon's AGI is $200,000.

Step by Step Solution

★★★★★

3.36 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a 2700 Gambling losses are only deductible to the extent of gambling winnings Thus Simon cannot dedu... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1169-L-B-L-I-T-E(1840).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

You have a friend, Icahn Betitall, who just started a small business. He is paying a hefty premium for insurance. Icahns insurance agent told him that he is insuring against the risk of loss on fire,...

Martha is a flight attendant stationed in Denver. Her assignments are rotated randomly between flights to Portland, Boise, and Las Vegas. For this problem, consider a success being a trip to Las...

Wen, who has current wealth of $10,000, decides to take advantage of a free trip to Las Vegas to play roulette. His utility function over the wealth he ends up with after the trip Y (which equals his...

Simon lost $9,300 gambling this year on a trip to Las Vegas. In addition, he paid $2,460 to his broker for managing his $246,000 portfolio and $1,130 to his accountant for preparing his tax return....

Simon lost $9,850 gambling this year on a trip to Las Vegas. In addition, he paid $2,660 to his broker for managing his $266,000 portfolio and $1,055 to his accountant for preparing his tax return....

imon lost $6,100 gambling this year on a trip to Las Vegas. In addition,he paid $2,600 to his broker for managing his $218,000 portfolio and $1,620 to his accountant for preparing his tax return. In...

Simon lost $5,000 gambling this year on a trip to Las Vegas. In addition,he paid $2,000 to his broker for managing his $200,000 portfolio and $1,500 to his accountant for preparing his tax return. In...

Simon lost $9,300 gambling this year on a trip to Las Vegas. In addition, he paid $2,460 to his broker for managing his $246,000 portfolio, and $1,130 to his accountant for preparing his tax return....

Simon lost $5,150 gambling this year on a trip to Las Vegas. In addition, he paid $2,090 to his broker for managing his $209,000 portfolio, and $1,725 to his accountant for preparing his tax return....

If you could help me getting this answer it would be a huge help Simon lost $5,300 gambling this year on a trip to Las Vegas. In addition, he paid $2,970 to his broker for managing his $297,000...

Can you conclude at the a = 0.05 level that the median number of species is greater for a retentions time of days than for a retention time of 3 days? Compute the appropriate test statistic, find the...

In July 2009, an American investor buys 1,000 shares in a Mexican company at a price of 500 pesos each. The share does not pay any dividend. A year later she sells the shares for 550 pesos each. The...

I am currently working on an extra problem set to recuperate some lost points but I am very unsure about the graphs I've been getting. I would just like to get confirmation if they are olcay looking...

3. What would you do in Shelly's position? Shelly Acres, whose grandmother gave her a family recipe for making pies, loved to cook, and she decided to start a busi- ness she called Mrs. Acres...

Janice acquired an apartment building on June 4, 2016, for $1.6 million. The value of the land is $300,000. Janice sold the apartment building on November 29, 2022. a. Determine Janice's cost...

You have just completed the first year of operation for your business and have the following information: sales, $200,000; cost of goods, $140,000; rent, $18,000; utilities, $8,400; insurance,...

Derek will deposit $1,789.00 per year into an account starting today and ending in year 21.00. The account that earns 8.00%. How much will be in the account 21.0 years from today? Attempts Remaining:...

Risky Business wants to know the payback period, NPV, IRR, MIRR, and Pl of this project. The appropriate discount rate for the project is 13%. If the cutoff period is 6 years for major projects,...