Final answer:
The cost of paying a tax liability cannot be deducted as a miscellaneous itemized deduction subject to the 2% of AGI floor; however, costs for tax return preparation, property appraisals for tax, and contesting a tax liability were previously allowable deductions.
Step-by-step explanation:
The tax-related expense that cannot be deducted as a miscellaneous itemized deduction subject to the 2% of adjusted gross income (AGI) floor is the cost of paying a tax liability. Miscellaneous itemized deductions previously allowed taxpayers to deduct certain expenses, such as cost of tax return preparations, cost of property appraisals for tax documentation, and cost of contesting a tax liability. However, with the Tax Cuts and Jobs Act of 2017, most miscellaneous itemized deductions subject to the 2% floor were eliminated for tax years 2018 through 2025. It's notable that even before this change, the actual payment of taxes was not considered an allowable miscellaneous itemized deduction.