Deductions to arrive at AGI and 2% deductions?

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  • March 29, 2014 at 5:33 pm #184679
    Anonymous
    Inactive

    What is the difference between deductions to arrive at AGI and 2% miscellaneous deductions, besides the fact that they having a different list of things?

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  • March 29, 2014 at 5:53 pm #541112
    PocketsWithCash
    Member

    Deductions for AGI/to arrive at AGI/adjustments face fewer income restrictions than miscellaneous deductions, ie. you can earn a lot of money and still take these deductions. Deductions from AGI, like miscellaneous deductions, are limited by your AGI so you won't always receive the full value of the possible deduction. This makes deductions to arrive at AGI more valuable since more of these deductions lowers your AGI, which decreases the non-deductible portion of a deduction from AGI, like the 2% for miscellaneous deductions.

    FAR 97
    REG 91
    AUD 5/30/14
    BEC 7/11/14

    March 29, 2014 at 5:53 pm #541147
    PocketsWithCash
    Member

    Deductions for AGI/to arrive at AGI/adjustments face fewer income restrictions than miscellaneous deductions, ie. you can earn a lot of money and still take these deductions. Deductions from AGI, like miscellaneous deductions, are limited by your AGI so you won't always receive the full value of the possible deduction. This makes deductions to arrive at AGI more valuable since more of these deductions lowers your AGI, which decreases the non-deductible portion of a deduction from AGI, like the 2% for miscellaneous deductions.

    FAR 97
    REG 91
    AUD 5/30/14
    BEC 7/11/14

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