Final answer:
Section 212 expenses related to rent and royalty income are deductions for AGI.
Step-by-step explanation:
Section 212 expenses that are related to rent and royalty income are deductions for AGI
- Section 212 expenses: These are expenses that are incurred in the production or collection of income that is not derived from a trade or business. Examples of Section 212 expenses include investment advisory fees, legal and accounting fees related to the production of income, and expenses related to the rental of property.
- Rent and royalty income: This refers to income earned from renting out property or receiving royalties from intellectual property, such as patents or copyrights.
- Deductions for AGI: These are deductions that are subtracted from your gross income to arrive at your adjusted gross income (AGI). Deductions for AGI can be claimed regardless of whether you itemize deductions or take the standard deduction.