EFPR Group Companies

For over 60 years, our knowledgeable and experienced team of CPAs and business consultants have been serving individuals and businesses in Western New York and around the nation.

New Law Eliminates Miscellaneous Itemized Deductions

The new tax law eliminates most itemized deductions, starting in 2018. Under prior law, the following deductions were deductible if they exceeded 2% of your adjusted gross income. For 2018 through 2025, this change eliminates deductions for a wide variety of expenses, such as:

Tax-Related Expenses

  • Tax preparation expenses,
  • Tax advice fees, and
  • Other fees and expenses incurred in connection with the determination, collection, or refund of any tax.

Expenses Related to Taxable Investments

  • Investment advisory fees and expenses,
  • Clerical help and office rent for office used to manage investments,
  • Expenses for home office used to manage investments,
  • Depreciation of computer and electronics used to manage investments,
  • Fees to collect interest and dividends,
  • Your share of investment expenses passed through to you from partnership, limited liability company or S corporation,
  • Safe deposit box rental fee for box used to store investment items and documents, and
  • Other investment-related fees and expenses.

Expenses Related to Production of Taxable Income

  • Hobby expenses (limited to hobby income),
  • IRA trustee/custodian fees if separately billed to you and paid by you as the account owner,
  • Loss on liquidation of traditional IRAs or Roth IRAs,
  • Bad debt loss for uncollectible loan made to employer to preserve your job, and
  • Damages paid to former employer for breach of employment contract.

Unreimbursed Employee Business Expenses

  • Education expenses related to your work as an employee,
  • Travel expenses related to your work as an employee,
  • Passport fees for business trips,
  • Professional society dues,
  • Professional license fees,
  • Subscriptions to professional journals and trade publications,
  • Home office used regularly and exclusively in your work as an employee and for the convenience of your employer,
  • Depreciation of a computer that your employer requires you to use,
  • Tools and supplies used in your work as an employee,
  • Union dues and expenses,
  • Work clothes and uniforms if required for your work and not suitable for everyday use,
  • Legal fees related to your work as an employee, and
  • Job search expenses to seek new employment in your current profession or occupation.

The TCJA is almost 500 pages long and covers a wide range of topics. We’ve summarized only the highlights here. For more detailed information, contact us for insight into how the changes will impact your specific business.

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