What tax savings do they receive from investment expenses

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Problem

Rich and Shauna Nielson file a joint tax return, and they itemize deductions. Assume their marginal tax rate on ordinary income is 25 percent. The Nielsons incur $2,650 in miscellaneous itemized deductions, excluding investment expenses. They also incur $1,800 in noninterest investment expenses during the year. What tax savings do they receive from the investment expenses under the following assumptions:

a) Their AGI is $97,000

b) Their AGI is $150,250.

Reference no: EM131970850

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