Tuesday, May 14, 2019
Douglas A. Kahn (Michigan), Suspension of Miscellaneous Itemized Deductions is Ill-Advised, 102 Tax Notes 777 (Feb. 18, 2019):
Section 67(g), added to the code by the Tax Cuts and Jobs Act, suspends any miscellaneous itemized deductions from 2018 to 2025. A miscellaneous itemized deduction is any itemized deduction that is not listed in section 67(b). This article explains that the suspension of some of the miscellaneous itemized deductions is unjustified and conflicts with fundamental tax policy.
There are other provisions in the TCJA that might be considered undesirable, but the suspension of the deduction for some miscellaneous itemized deductions is especially harsh and contravenes fundamental tax policy. The deductions for the three items discussed in this article (section 212 expenses, casualty and theft losses of an employee’s business property, and employee business expenses) should be reinstated. There is no reason for there to be any limitation on the deduction of those items, and they should be excluded from the category of miscellaneous itemized deductions.