CPA-08445  Which of the following is not a deduction to arrive at adjusted gross income?
　　a. Alimony payments.
　　b. Trade or business expenses.
　　c. Capital losses in excess of capital gains.
　　d. Unreimbursed employee business expenses.
　　AICPA Difficulty Rating: MEDIUM
　　Question Title: AICPA Newly Released 2014
　　Lecture to be assigned to: R-2
　　Topic to be assigned to: Adjustments and Itemized Deductions 1
　　Page reference (page # and outline point): R2-3, II. A.
　　ANSWER:
　　Choice "d" is correct.Unreimbursed employee business expenses are not a deduction to arrive at adjusted gross income. They are an itemized deduction from adjusted gross income.
　　Choice "a" is incorrect. Alimony payments are an adjustment, which is a deduction to arrive at adjusted gross income.
　　Choice "b" is incorrect. Trade or business expenses are deducted on Schedule C. This is before the calculation of adjusted gross income. Accordingly, this is a deduction to arrive at adjusted gross income.
　　Choice "c" is incorrect. Capital losses in excess of capital gains are deducted (up to $3,000) on Form 1040 before the calculation of adjusted gross income. Accordingly, this is a deduction to arrive at adjusted gross income.