Explain the Change in the Tax Treatment Regarding the Limitation

question 19

Short Answer

Explain the change in the tax treatment regarding the limitation of itemized deductions for high-income taxpayers.
The high income limitation on itemized deductions was phased out from 2006 through 2009.For 2014,this limitation on the amount of itemized deductions for high-income taxpayers is back in effect.High-income taxpayers' itemized deductions will be reduced by the lower of 3% of the excess of AGI over the applicable amount or 80% of the itemized deductions otherwise allowable for the tax year.

---

Definitions:

Departmental Performance

refers to the evaluation of how individual departments within an organization are performing, often measured by financial results, productivity, and achievement of goals.

Advancements in Technology

Ongoing progress and developments in technology that enhance capabilities, improve efficiency, and contribute to various sectors like business, medicine, and education.

Direct Expenses

Costs that can be directly traced to a specific product, service, or department, such as direct materials or direct labor required for production.

Actual Expenses

The real, documented expenditures incurred by an individual or business.