Question

Bob Brain files a single tax return and decides to itemize his deductions. Bob's income for the year consists of $74,700 of salary, $3,150 long-term capital gain, and $2,150 interest income. Bob's expenses for the year consist of $830 in investment advice fees and $185 in tax return preparation fees.

Required:
a. What is Bob's investment expense deduction?

Answer 1

$0

Step-by-step explanation:

Bob's investment expense deduction is $0 because deduction Investment expenses are not deductible due to the fact that several deductible investment expenses have been eliminated by the Tax Cuts and Jobs Act.

Example Fees for investment costs were deductible as a miscellaneous itemized deduction including other costs that exceed 2 percent of a person or an individual adjusted gross income.