Bob Brain files a single tax return and decides to itemize his deductions. Bob's income for the year consists of $75,000 of salary, $3,000 long-term capital gain, and $1,500 interest income. Bob's expenses for the year consist of $800 in investment advice fees and $250 in tax return preparation fees. What is Bob's investment expense deduction?

Question

Emerson Garner

Business

14 February, 14:38

Bob Brain files a single tax return and decides to itemize his deductions. Bob's income for the year consists of $75,000 of salary, $3,000 long-term capital gain, and $1,500 interest income. Bob's expenses for the year consist of $800 in investment advice fees and $250 in tax return preparation fees. What is Bob's investment expense deduction?

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Sammy Copeland · Answer 1

Given:

Bob's income for the year:

Salary = $75,000

Long-term capital gain = $3,000

Interest income = $1,500

Bob's expenses for the year:

Investment advice fees = $800

Tax return preparation fees = $250

This should be duly noted that there have been changes in the tax law, therefore several investment-related expenditure are not deductible.

General enumerated tax write-off included disbursal such as investment advice fees, IRA protective fees, and accounting costs essential to collect dutiable income. Tax year 2018 to 2025, the following deductions have been obviated.

Therefore Bob's investment expense deduction will be $0.