Which of the following expenses is deductible, but subject to the 2% limitation on Form 1040, Schedule A; Job Expenses and Most Other Miscellaneous Itemized Deductions?
A. A blue suit for an accountant
B. Appraisal fees on the sale of a personal residence
C. Uniforms for a UPS delivery person
D. The cost of hauling tools to work in the trunk of a car
is it B
Yes, Option B is correct. Appraisal fees on the sale of a personal residence are deductible, but subject to the 2% limitation on Form 1040, Schedule A; Job Expenses and Most Other Miscellaneous Itemized Deductions.
To determine the answer, you should refer to the IRS guidelines for deducting job expenses and most other miscellaneous itemized deductions.
In this case, the job expense is the appraisal fees on the sale of a personal residence. You need to check if this expense falls under the category that is subject to the 2% limitation.
To find this information, you can refer to Form 1040, Schedule A, which is used for itemized deductions. Section 2 of Schedule A is specifically for Job Expenses and Most Other Miscellaneous Deductions.
Looking at this section, you will find a list of expenses that are subject to the 2% limitation. This means that only the amount exceeding 2% of your adjusted gross income (AGI) can be deducted.
Among the options provided, appraisal fees on the sale of a personal residence fall under this category and are therefore subject to the 2% limitation.
Remember to consult the official IRS guidelines or consult a tax professional for specific and up-to-date information.