Question

Required information The following information applies to the questions displayed below.) In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) deductible neither for nor from AGI before considering income limitations or the standard deduction. (Leave no answer blank. Enter zero if applicable.) c. Jake is a perfume salesperson. Because of his high pay, he receives no allowance or reimbursement from his employer for advertising expenses even though his position requires him to advertise frequently. During the year, he spent $2,200 on legitimate business advertisements. Deductible for AGI Deductible from AGI Not deductible

Answer 1

Deductible for AGI = NIL

Deductible from AGI = $ 2200

Not deductible = NIL

Miscellaneous itemized deductions are non-business expenses that one can itemize against their taxable income. This deduction includes expenses of producing income, employee business expenses and so on.

Business advertisement expenses form part of employee business expenses in the context used here. The advertisement expenses can be itemized using form 1040. They will be deducted from AGI as miscellaneous itemized deduction