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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.)

a. Fran spent $182 for uniforms for use on her job. Her employer reimbursed her for $116 of this amount under an accountable plan (and did not report the reimbursement as wages).

Deductible for AGI

Deductible from AGI

Non deductible

b. Timothy, a plumber employed by ACE Plumbing, spent $127 for small tools to be used on his job, but he was not reimbursed by ACE.

Deductible for AGI

Deductible from AGI

Non deductible

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 $4,250 on legitimate business advertisements.

Deductible for AGI

Deductible from AGI

Non deductible

d. Trey is a self-employed, special-duty nurse. He spent $235 for uniforms.

Deductible for AGI

Deductible from AGI

Non deductible

e. Mary, a professor at a community college, spent $545 for magazine subscriptions. The magazines were helpful for her research activities, but she was not reimbursed for the expenditures.

d. Trey is a self-employed, special-duty nurse. He spent $235 for uniforms.

Deductible for AGI

Deductible from AGI

Non deductible

f. Wayne lost $680 on the bets he made at the race track, but he won $157 playing slot machines.

Deductible for AGI

Deductible from AGI

Non deductible

Answer 1

a. For Fran

1. Deductible for AGI: $66 ( amount not reimbursed)
2. Deductible from AGI : 0
3. Non deductible: $116 (as reimbursed by employer)

b. For Timothy

1. Deductible for AGI: 0
2. Deductible from AGI : $127 ( amount not reimbursed)
3. Non deductible: 0

c. For Jake

1. Deductible for AGI: $4250 ( as it is necessary for him to advertise, even though no reimbursement will be available)
2. Deductible from AGI : 0
3. Non deductible: 0

d. For Trey

1. Deductible for AGI: $235 ( as it is business expenditure )
2. Deductible from AGI : 0
3. Non deductible: 0

e. For Mary

1. Deductible for AGI: 0
2. Deductible from AGI : $157 (loss upto income from such business will be allowed to set off)
3. Non deductible: 0

f. For Wayne

1. Deductible for AGI: $235 ( as it is business expenditure )
2. Deductible from AGI : 0
3. Non deductible: $523 ( as such loss cannot be carry forward and cannot set off against any other income)