Requirement b. Assume the same facts as in Part a except that in addition to her salary and investment and dividend income. Michelle also owns a small business. Of the $400 fee paid to the CPA, $250 is for the preparation of her Schedule C (Profit or Loss from Business). How much, if any, of the $400 is a deductible expense? Identify it as either for or from AGI. Because $250 of the fee is attributable to Michelle's business, this amount is a from AGI deduction. The remaining $150 is not deductible because the expense is not attributable to Michelle's business. The entire $400 is deductible because it is a business expense. Business expense is a from AGI deduction and the deduction is limited to the amount of revenue earned from the business. Because $250 of the fee is attributable to Michelle's business, this amount is a for AGI deduction. The remaining $150 is a miscellaneous itemized deduction. Miscellaneous itemized deductions are only deductible to the extent they exceed 2% of AGI, and then only if the taxpayer itemizes deductions rather than taking the standard deduction. The entire $400 is deductible because it is a business expense. Business expense is a for AGI deduction and the deduction is limited to the amount of revenue earned from the business