Question :

Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part-time as alternate grade school teacher. Evaluate the amount of Clem's expenses that are deductible for AGI this year (if any) under the subsequent circumstances:

a.           

Clem is self-employed and this year he incurred $795 for tools and supplies related to his job. Since neither was covered by a qualified health plan, Wanda paid health insurance premiums of $5,240 to provide coverage for her and Clem.

DEDUCTIBLE AMOUNT FOR AGI = _______________________

b.           

Wanda and Clem own a garage downtown that they rent to a local business for storage. This year they incurred $1,800 in utilities and depreciation of $840.

DEDUCTIBLE AMOUNT FOR AGI = _______________________

c.            

Clem paid self-employment tax of $25,200 (the employer portion is $12,600), and Wanda had $5,550 of Social Security taxes withheld from her pay.

DEDUCTIBLE AMOUNT FOR AGI = _______________________

d.           

Clem paid $45 to rent a safe deposit box to store his coin collection. Clem has collected coins intermittently since he was a boy, and he expects to sell his collection when he retires.

DEDUCTIBLE AMOUNT FOR AGI = _______________________