Question

Which of the following expenses are deductible, but subject to the 2% limitation on Form 1040, Schedule A. Job Expenses and Most Other Miscellaneous Itemized Deductions?

License of a self-employed plumber.

Appraisal fees on the sale of your personal residence.

Protective gear required to work in a chemistry lab.

The cost of hauling tools to work in the trunk of your car.

Answer 1

Answer

Ans is Option A.License of a self-employed plumber.

An expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense doesn't have to be required to be considered necessary.

You may be able to deduct the following items as unreimbursed employee expenses.

• Business bad debt of an employee.

• Business liability insurance premiums.

• Damages paid to a former employer for breach of an employment contract.

• Depreciation on a computer your employer requires you to use in your work.

• Dues to a chamber of commerce if membership helps you do your job.

• Dues to professional societies.

• Educator expenses.

• Home office or part of your home used regularly and exclusively in your work.

• Job search expenses in your present occupation.

• Laboratory breakage fees.

• Legal fees related to your job.

• Licenses and regulatory fees.

• Malpractice insurance premiums.

• Medical examinations required by an employer.

• Occupational taxes.

• Passport for a business trip.

• Repayment of an income aid payment received under an employer's plan.

• Research expenses of a college professor.

• Rural mail carriers' vehicle expenses.

• Subscriptions to professional journals and trade magazines related to your work.

• Tools and supplies used in your work.

• Travel, transportation, meals, entertainment, gifts, and local lodging related to your work.

• Union dues and expenses.

• Work clothes and uniforms if required and not suitable for everyday use.

• Work-related education.