Comment on FR Doc # 2011-22732

Regarding the example in reg. sec. 1.67-4(c)2): Expenses of leasing and managing rental real estate are presumably sec. 162 expenses deductible in all events without regard to the 2% limit. If the expenses are deemed to by sec. 212 expenses, they still end up above AGI under sec. 62(a)(4) for individuals. The same rule should apply in this context for fiiduciaries. Therefore, unless I'm missing something, this example is incorrect and should be removed. Tom Daley