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Tax Planning Expenses

I received an inquiry about the deduction of tax planning (as opposed to financial planning) expenses.

I always thought that tax planning expenses were deductible, on Schedule A subject to the 2% limitation. But in looking around I haven't been able to find authority for that.

Am I off base?

Thanks for any comments.

Reply to
Stuart O. Bronstein
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TCJA 2017 suspended deductions called "miscellaneous itemized deductions" that were deductible to the extent they exceeded 2% of a taxpayer's adjusted gross income. The suspension is from 2018 through 2025.

Reply to
Alan

Thanks. I knew that some deductions were eliminated, but I didn't realize that all miscellaneous itemized deductions were.

Reply to
Stuart O. Bronstein

Not ALL misc. itemized deductions. Just those subject to the 2% of AGI limitation. See page A-12 in the Form 1040 Schedule A instructions for the list of those still allowed.

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Reply to
Alan

Right. Thanks again.

Reply to
Stuart O. Bronstein

Do check your state's tax treatment of them, though, as it may differ from the Fed. California, for example, did not conform to the elimination of the deductions in question, so they are still good on CA return.

========================================= MODERATOR'S COMMENT: Marla - please include in your message the part of the prior message you are responding to.

Thanks.

Reply to
Maria Ku

NY also allows the miscellaneous itemized deductions subject to 2% AGI which have been suspended under TCJA.

Ira Smilovitz, EA Leonia, NJ

Reply to
ira smilovitz

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