 Hello and welcome to this session in which we will discuss additional deductions or additional business expenses that applies to self-employed as well as employee sometime differently. And specifically in this session, we're going to be looking at the educator expense. We're going to be looking at the miscellaneous expenses and we're going to discuss the moving and the gift expense. Before we proceed any further, I have a public announcement about my company farhat-lectures.com. Farhat Accounting Lectures is a supplemental educational tool that's going to help you with your CPA exam preparation as well as your accounting courses. My CPA material is aligned with your CPA review course such as Becker, Roger, Wiley, Gleam, Myles. My accounting courses are aligned with your accounting courses broken down by chapter and topics. My resources consist of lectures, multiple choice questions, true-false questions as well as exercises. Go ahead start your free trial today. Starting with moving expense. The moving expense are only available now for armed forces and their families. So simply put, the moving expense deduction is retained for members of the armed forces and the and the reason we say retained because it was available for practically anyone but it had you had to meet certain rules. Now only armed forces on active duty who move because of the military order. That's it. Otherwise the moving expense is suspended from 2015 to 2018. Business gifts. Well sometime what happened is you might give gifts to your customers or potential customers. Business gifts of tangible personal property valued at 25 or less per person per year are deductible. So how much can you give? Not too much. In other words you cannot bribe your customers. You cannot bribe your potential customers. So you are limited to that. Now you can give more that's not a problem but you cannot deduct. Simply put the government it's no it's not going to give you. Let's discuss business gifts. What are business gifts? Business gifts is when you try to give someone a gift a personal gift to do what? To create goodwill. For what purpose? To grow your business. To attract them as a client or to retain them as a as an existing client. Well what can you deduct if that happens? Well you can deduct the value of the tangible personal property gift up to $25 or less per person per year. So you can give each individual a max of $25 per person per year. You can give them more but you can only deduct 25. Now there's also incidental costs such as gift wrapping. Those are not included so you can add the gift wrapping cost. Also if the value of the gift is $4 or less you know maybe a pen with a company name on it or if it's consistent of a promotional material it's not subject of a $25 limit. Well let's look at an example. In December Farhat purchases personalized desk calendar and sends one to each of its client. The cost of each personalized desk calendar is $50 and there's an additional expense of $10 for packaging and shipping. Well Farhat is eligible to deduct $35 in total which is $25 for the gift and $10 for packaging and shipping and this is what we mean a reasonable amount for packaging and shipping gift wrapping. Also Farhat sent a stylus with Farhat logo and printed on it for $3 that's fine that is deductible. Then we could have miscellaneous employee expenses. Well those are expenses that an employee can take and this is a partial list of them special clothing uniform union dues membership dues to professional organization professional expenses job hunting in the same profession. Those expenses those deductions are suspended from 2018 to 2025. Those goes on schedule A subject to 2% limitation but they are suspended for now. Educator expense many teachers what they do is they buy their own supplies they buy their own supplies and they invest money in their professional development. So what happened is this those are also miscellaneous itemized deduction and what happened to those they are suspended from 2018 to 2025. So what the government did they created another deduction for that and they said elementary and secondary educator you are allowed to deduct up to $300 of these expenses for AGI. So although you're an employee you work for a school if you spend $300 and we're going to see what you can spend them or spend them on you can deduct that for your adjusted gross income. Educator including instructors, counselor, principal and aides that must work a minimum of 900 hours during the work here and you can deduct expenses related to professional development courses books supplies equipment and material used in the classroom including disinfecting and supplies to prevent COVID-19. Again the reason for this is to give teachers a deduction for making this extra effort buying supplies to run the classroom. What should you do now go to far hat lectures and look at additional mcqs that's going to help you understand the concept of business deduction especially the one that are that qualify for employee as well as employers. Good luck study hard and of course stay safe.