Joel Rich is an outside salesman, deriving his income solely from commissions, and personally bearing all expenses without reimbursement of any kind. During 2007, Joel paid the following expenses pertaining directly to his activities as an outside salesman:
|
Travel |
$10,000 |
|
Secretarial |
7,000 |
|
Telephone |
1,000 |
How should these expenses be deducted in Joel’s 2007 return?
|
From gross income, in arriving at adjusted gross income |
As itemized deductions |
|
|
a. |
$18,000 |
$0 |
|
b. |
$11,000 |
$ 7,000 |
|
c. |
$10,000 |
$ 8,000 |
|
d. |
$0 |
$18,000 |