Expenses You Can’t Deduct
In addition to the expenses that are no longer deductible as a miscellaneous itemized deduction, there are expenses that are traditionally nondeductible under the Internal Revenue Code. Both categories of deduction are discussed next.
Miscellaneous Deductions Subject to the 2% AGI Limit
Unless you qualify for an exception, discussed later, you generally can't deduct the following expenses, even if you fall into one of the qualified categories of employment listed earlier.
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Appraisal fees for a casualty loss or charitable contribution.
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Casualty and theft losses from property used in performing services as an employee.
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Clerical help and office rent in caring for investments.
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Credit or debit card convenience fees.
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Depreciation on home computers used for investments.
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Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust.
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Fees to collect interest and dividends.
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Hobby expenses, but generally not more than hobby income.
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Indirect miscellaneous deductions from pass-through entities.
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Investment fees and expenses.
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Legal fees related to producing or collecting taxable income or getting tax advice.
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Loss on deposits in an insolvent or bankrupt financial institution.
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Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed to you.
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Repayments of income.
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Repayments of social security benefits.
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Safe deposit box rental, except for storing jewelry and other personal effects.
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Service charges on dividend reinvestment plans.
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Tax advice fees.
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Trustee's fees for your IRA, if separately billed and paid.
March 21, 20209:57 AM
