Final answer:
The claim that Section 212 expenses may be for AGI or from AGI is false. They are considered from AGI deductions, specifically itemized deductions subject to the 2% floor, not for AGI deductions.
Step-by-step explanation:
The statement that Section 212 expenses may be for AGI or from AGI is false. Section 212 expenses, as defined by the Internal Revenue Code, are deductions that taxpayers can take for expenses incurred in the production of income.
After the Tax Cuts and Jobs Act of 2017, these expenses became deductible only as miscellaneous itemized deductions on Schedule A and are subject to the 2% floor, meaning they can only be deducted to the extent that they exceed 2% of the taxpayer's adjusted gross income (AGI). This makes them from AGI deductions, not for AGI deductions.
For AGI deductions, also known as 'above-the-line' deductions, reduce the gross income to arrive at AGI. They are advantageous because they are not subject to the 2% floor and can be taken even if a taxpayer does not itemize.
Since Section 212 expenses are no longer deductible for AGI but are instead itemized deductions from AGI, the initial statement is incorrect.