A plumber employed by a plumbing contractor

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Reference no: EM13995115

Harry, a plumber employed by a plumbing contractor here in Wellesley, is considering opening a Dunkin' Donuts franchise. He travels to Dunkin' Donuts headquarters in Quincy, Mass. (40 miles round trip) 4 times to meet with company officials.  He incurs legal and accounting fees of $10,000.  If  Harry decides to acquire the franchise, any investigation expenses -- the legal, accounting and travel costs -- are:

a.

A deduction for AGI.

b.

A deduction from AGI, subject to the 2 percent floor.

c.

A deduction from AGI, not subject to the 2 percent floor.

d.

Deductible up to $5,000 in the current year with the balance being amortized over a 180-month period.

e.

Not deductible.

Reference no: EM13995115

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