If I already meet the 2% misc deduction floor on Sch-A, can I deduct investment expenses that I would otherwise list on Sch-E? Trying to avoid a Sch-E loss...

[data8504]

It's my first year with a rental property, and it looks like I'll have a Schedule E loss that I'll need to carry over. Bummer.

However, I got the bright idea that since I already meet the Schedule A miscellaneous deduction 2% floor (thanks to wife's continuing ed classes + union dues), maybe I could just move some investment expenses to Schedule A?

This would effectively let me reduce my loss on Schedule E, while increasing my deduction on Schedule A. Is this allowed? 

[jerry2000]

No. That is called tax fraud and is not allowed.

[data8504]

Hold on. I think I need a little more detail than that. Sch-A's "miscellaneous deductions" specifically allows investment expenses to be included. What is it about these expenses (which are, by definition since they're eligible on Sch-E, "investment") that makes them ineligible for inclusion on Schedule A? Clearly I *cannot* list the same expense on *both* schedules (double dip), but what rule prevents me from choosing one versus the other?

[jerry2000]

Read the rules for where you claim Rental Income and Expense in IRS Pub 527:
at this link:
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p527.pdf">https://www.irs.gov/pub/irs-pdf/p527.pdf</a>