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All miscellaneous itemized deductions are combined and only the excess of the total over... % is deductible as an itemized deduction.
Travel expense deductions require (1) that the trip be connected with a... and that the (2) TP be “...” overnight or long enough to require...
- away from home, sleep
Generally commuting expenses are... However, TP’s with... may deduct transportation expenses incurred in driving from...
not deductible, more than one job, one job to another.
TP’s may deduct the cost of traveling to a... work location.
A TP may deduct either the... automobile expenses or use the standard mileage rate, which is... cents/mile.
IF a TP takes a trip that is primarily personal in nature only expenses... related to the business activity may be deducted.
When trips are primarily related to business activities the... are deductible and all other expense are...
travel expenses, pro rated.
Reimbursements made under an accountable plan are... gross income and expenses are not deductible... AGI.
accountable, excluded from, for
When the reimbursement is equal to the expenses the result is an offset and no... is required.
When the reimbursement exceeds the expenses and the employee does not return the excess, the employee has...
Under a non-accountable plan, reimbursements are... the employee’s gross income and the expenses are deductible by the employee if they exceed...
included in, 2% of AGI
... expenses include expenditures necessary for the production or collection of income, or for the management, conservation, or maintenance of property held for the production of income.
When an activity is classified as a business (primarily profit-motivated) the expenses are deductibl... AGI.
When activities are engaged in primarily for personal enjoyment they are classified as a hobby and related expenses can only be deducted to the extent of... from the hobby. The burden of proof is on the... to show that an activity is...
gross income, TP, profit-motivated
If the activity generates a profit in... out of... consecutive years it creates a rebuttable presumption that the activity is a business (burden shifts to the...)
3, 5, IRS
If the hobby expenses exceed the amount of GI generated by the hobby, the expense deductions offset GI in the following order:
Tier 1: Expenses that are deductible anyway (itemized deductions)
Tier 2: Expenses that would be deductible if the activity was a T or B, except depreciation (2% MID)
Tier 3: Depreciation (2% MID)