Question

IRC Sec. 212—Expenses for Production of Income outlines itemized deductions for individuals in earning or otherwise producing income. Does this provision favor Independent contractors or employees? Why?

Answer 1

In the case of an individual, there shall be allowed as a deduction all the ordinary and necessary
expenses paid or incurred during the taxable year—
212(1) for the production or collection of income;
212(2) for the management, conservation, or maintenance of property held for the production of
income; or
212(3) in connection with the determination, collection, or refund of any tax.