Prentice Hall's Federal Taxation 2015 Comprehensive, 28/E

Chapter 9 Individuals-- Employee Expenses and Deferred Compensation

Problem 9-7

Louie is a full-time employee for a large corpora- tion and also an investor in the stock market in his spare time. In the current year, Louie incurs $2,500 of travel expenses and $1,000 in registra- tion fees related to attending investment seminars. He deducts the expenses on his income tax return as a miscellaneous itemized deduction as an in- vestment expense. Are the travel expenses and registration fees deductible? Should they be clas- sified as for AGI or from AGI?