Question

Ed is a self-employed heart surgeon who lives in Michigan and has incurred the following reasonable expenses. How much can Ed deduct?

1,000 in airfare to repair investment rental property in Colorado.
500 in meals while attending a medical convention in New York.
300 for tuition for an investment seminar "How to pick stocks."
100 for tickets to a football game with hospital administrators to celebrate successful negotiation of a surgical contract earlier in the day.

The correct answer is _____.
1) 1,250 "for AGI"
2) 1,300 "for AGI" and 300 "from AGI"
3) 480 "for AGI"
4) 80 "for AGI" and 1,300 "from AGI"
5) None of the choices are correct.

Answer 1

Ed can deduct $1,250 'from AGI' for his airfare related to rental property repairs and 50% of his meal expenses during a medical convention. The tuition and football ticket expenses are not deductible.

Step-by-step explanation:

The question asks about potential tax deductions for Ed, a self-employed heart surgeon with various expenses. Here's how each expense should be evaluated:

In summary, $1,250 ($1,000 + $250) could be deductible 'from AGI' as these expenses are related to his business or rental property.