Small Business Taxes & Management


Miscellaneous Itemized Deductions


Small Business Taxes & ManagementTM--Copyright 2019, A/N Group, Inc.


Beginning in 2018 taxpayers will not be able to deduct most miscellaneous itemized deductions. That includes unreimbursed business expenses, home office, union dues and professional licenses, etc. The elimination lapses and the end of 2025 and these expenditures will once again be deductible.

We've left a table of the old rules for taxpayers who haven't filed their 2017 (or 2016) returns and for taxpayers filing amended returns.


Other Itemized Deductions (applicable to 2018 and subsequent returns)

___ Form 4684; casualty and theft losses from income producing property
___ Portfolio expenses from Schedule K-1
___ Impairment related work expenses of persons with disabilities
___ Federal estate tax in respect of a decedent
___ Gambling losses up to the amount of gambling winnings
___ Amortizable premium on taxable bonds
___ Unrecovered investment in pension
___ Net qualified disaster loss
___ Ordinary loss related to a contingent payment debt instrument or inflation indexed debt instrument
___ Income repayment in excess of $3,000 under a claim of right

These deductions are not subject to a 2% threshold. 


Items Applicable to 2017 and Prior Years

Unreimbursed Business Expenses Subject to 2% Threshold

Form 2106

___ Travel, transportation, meals, entertainment, gifts, and local lodging work related
___ Vehicle expenses; rural mail carriers
___ Non-vehicle depreciation (e.g., computer, office furniture at home, tools, etc.)
___ Educator expenses (amounts in excess of the $250 allowed on Form 1040)
___ Home office expense

Other Business Expenses

___ Dues to professional societies
___ Job search expenses (in present occupation, not new trade or business)
___ Work-related education (not for a new trade or business)
___ Chamber of commerce dues (job related)
___ Professional licenses required by employment
___ Union dues; expenses
___ Tools and supplies
___ Uniform and work clothes (only if required and not suitable for nonbusiness use)
___ Subscriptions to trade and professional magazines (only work related)
___ Passport for business trip
___ College professor, research expenses
___ Job related legal fees
___ Damages for employment contract breach
___ Insurance premium, business liability
___ Insurance premium, malpractice
___ Occupational taxes
___ Required medical examinations
___ Business bad debt as an employee


Other Deductions Subject to 2% Threshold

___ Tax preparation fees (separate line on Schedule A)
___ Investment fees
___ Trust administration fees
___ Custodial fees
___ Safe deposit box rental
___ Tax advice related to investments
___ Other expenses including clerical help for managing your investments
___ Depreciation on computer for investments
___ Legal fees if related to producing or collecting taxable income
___ Legal fees related to retaining your employment
___ Legal fees related to tax advice in divorce (get itemized invoice)
___ Other expenses for managing investments (but only if they produce taxable income)
___ Excess deductions to beneficiary on termination of an estate or trust
___ Casualty/theft losses related to property used in services as employee (e.g., auto accident)
___ Appraisal fees related to charitable contribution or casualty loss
___ Regulated investment company fees and expenses from Form 1099
___ Fee and expenses to collect interest, dividends, etc.
___ Hobby expenses, but not in excess of income from hobby
___ Miscellaneous expenses from K-1 of partnerships, LLCs, S corporations, trusts
___ Dividend reinvestment plan service charge
___ Credit card fee for paying income tax
___ Trustee's fees for IRA if billed separately
___ REMIC (real estate mortgage investment conduits)
___ Loss on traditional and Roth IRAs, but only when all amounts distributed and less than basis
___ Repayments of income (including unemployment) if equal to or less than $3,000
___ Repayments of social security benefits (special rules if more than $3,000)
___ Losses on nonfederally insured deposits in bankrupt/insolvent financial institutions


Miscellaneous Itemized Deductions Not Subject to 2% Threshold

___ Gambling losses not in excess of gambling winnings
___ Disabled person, impairment related work expenses
___ Deductions from pass-through entities (partnership, LLC, S corporation)
___ Casualty and theft losses from income producing property
___ Federal estate tax related to income in respect of a decedent; from K-1; not from K-1
___ Amortizable bond premium (taxable bonds only)
___ Unrecovered pension investment
___ Loss resulting from a contingent payment debt instrument; inflation indexed debt instrument
___ Income repayment under claim of right, more than $3,000
___ Unrecovered annuity payments
___ Personal property used in a short sale


Copyright 2019 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536

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--Last Update 02/07/19