Question

Interview Notes

Archie Hamilton is 45 years old and single.

Archie had a wage income of $55,000. He also had gambling winnings of $1,000.

He is not sure if he should itemize or take the standard deduction.

Archie paid the following:

$5,200 qualifying home mortgage interest.

$9,507 for real estate taxes.

$5,040 for state income taxes withheld in 2019.

Unreimbursed doctor and dentist bills in the amount of $7,000.

Unreimbursed prescription drugs for $14.

Vitamins for $120.

A statement received from his church showing donations made throughout the year totaling $1,200.

Receipts for donations of furniture and clothing in good, used condition to Goodwill. The total estimated fair market value is $100.

Tax preparation fee of $315 for his 2018 tax return.

$50 paid in 2019 on his 2018 balance due state income tax return.

$45 investment expense

$250 in gambling losses

12. Which of the following is Archie able to claim as a deduction on his Form 1040, Schedule A?

A. Investment expense

B. Tax preparation fee

C. Gambling losses

D. None of the above

Answer 1

Answer 12:

Correct answer is:

C. Gambling losses

Explanation:

Tax Cuts and Jobs Act eliminated deduction of certain investment related expenses.

Tax preparation fee is no longer allowable deduction.

Gambling losses can be deducted in schedule A to the extent of gambling winnings. As Archie has taxable gambling winnings of $1,000, he can deduct gambling losses of $250 in schedule A.