Here is one example.
MCQ: Which expense, both incurred and paid during the current year, can be claimed as an itemized deduction subject to the 2% of adjusted gross income floor?
–Employee’s unreimbursed business auto expense.
-One-half of the self-employment tax.
-Employee’s unreimbursed moving expense.
-Self-employed health insurance.
Reference:
The following miscellaneous expenses are only deductible to the extent they (in the aggregate) exceed 2% of AGI.
a. Outside salesman expenses include all business expenses of an employee who principally solicits business for his/her employer while away from the employer’s place of business.
b. All unreimbursed employee expenses including
(1) Employee education expenses if
(a) Incurred to maintain or improve skills required in employee’s present job, or to meet requirements to keep job
(b) Deductible expenses include unreimbursed transportation, travel, tuition, books, supplies, etc.
(c) Education expenses are not deductible if required to meet minimum educational requirements in employee’s job, or the education qualifies the employee for a new job (e.g., CPA review course) even if a new job is not sought
(d) Travel as a form of education is not deductible
(2) Other deductible unreimbursed employee expenses include
(a) Transportation and travel (including 50% of meals and entertainment)
(b) Uniforms not adaptable to general use
(c) Employment agency fees to secure employment in same occupation
(d) Subscription to professional journals
(e) Dues to professional societies, union dues, and initiation fees
(f) Physical examinations required by employer
(g) A college professor’s research, lecturing, and writing expenses
(h) Amounts teacher pays to a substitute
(i) Surety bond premiums
(j) Malpractice insurance premiums
(k) A research chemist’s laboratory breakage fees
(l) Small tools and supplies
c. Tax counsel, assistance, and tax return preparation fees
d. Expenses for the production of income other than those incurred in a trade or business or for production of rents and royalties (e.g., investment counsel fees, clerical help, safe-deposit box rent, legal fees to collect alimony, etc.)
^ For those who passed REG, how were you able to memorize the reference and answer questions like these on REG?
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