Question

Which of the following is a deductible expense?

a.Casualty and theft losses in excess of 10% of AGI
b.Funeral expenses
c.Capital expenditures
d.Personal living expenses
e.Child support payments

Answer 1

Casualty and theft losses in excess of 10% of AGI are deductible expenses.

Step-by-step explanation:

In terms of deductible expenses, option a. Casualty and theft losses in excess of 10% of AGI is correct. Casualty and theft losses are deductible expenses, but only to the extent that they exceed 10% of the Adjusted Gross Income (AGI). For example, if your AGI is $50,000 and you have casualty and theft losses of $6,000, the deductible amount would be $1,000 (10% of $50,000 is $5,000, so the deductible amount is $6,000 - $5,000 = $1,000).