Question
1) Sacha, a dentist, has significant investments assets. She holds corporate bonds, municipal bonds, stocks, and mutual funds. Sacha paid 1,500 to an investment adviser
1) Sacha, a dentist, has significant investments assets. She holds corporate bonds, municipal bonds, stocks, and mutual funds. Sacha paid 1,500 to an investment adviser to conduct a portfolio review and to prepare a recommendation for rebalancing her portfolio. Which of the following statements is correct regarding the tax treatment of the 1500 fee?
A) The 1500 fee is not deductibke B) Part of the 1500 fee will be disallowed due to the holding of the municipal bonds C) Sacha can include the full fee as an investment related expense in her "for AGI" deductions D) Sacha can include the full fee as an investment related expense in her misc. itemized deductions
2) Various criteria will disqualify the deduction of a business or investment related expenditure. Which of the following criteria will not disqualify a business or investment expenditure?
A) expenses are not incurred annually B) Capital Expenditure C) Expense related to tax exempt income D) expenses are illegal or in violation of public policy
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