Problem 1: Mr. and Mrs. West's adjusted gross income was $90,000. During the current year they incurred and paid the following:
Publications (unreimbursed and related to employment) $2,000
Tax return preparation fee 1,000
Dues to professional organizations 1,500
Fees for will preparation (no tax advice) 800
Life insurance premiums 1,400
Assuming they can itemize deductions, how much should the West's claim as miscellaneous itemized deductions (after limitations have been applied)?
A) $2,700
B) $4,500
C) $3,500
D) $5,300
Problem 2: Joe is a self-employed tax attorney who frequently entertains his clients at his country club. Joe's club expenses include the following:
Annual dues $5,400
Initiation fees 1,200
Charges for personal meals with his family 3,100
Meal and entertainment charges related to business use 4,000
Assuming the business meals and entertainment qualify as deductible entertainment expenses, Joe may deduct
A) $2,000.
B) $4,700.
C) $5,300.
D) $4,000.