Which of the following is not a characteristic of Miscellaneous Itemized Deductions?

Miscellaneous Itemized Deductions are specific expenses that can be subtracted from income when calculating taxable income, but they are subject to certain limitations. Self-employment taxes paid are considered an adjustment to income rather than a miscellaneous itemized deduction. They are typically deducted when calculating gross income on Form 1040, which affects the overall taxable income.

On the contrary, gambling losses, casualty and theft losses on investment property, and unrecovered costs of a life annuity are all items that qualify as miscellaneous itemized deductions under specific conditions. Gambling losses can offset gambling winnings to the extent of winnings, and casualty and theft losses are deductible to the extent they exceed the applicable limits. Unrecovered costs of a life annuity can also be deducted as a miscellaneous itemized deduction if specific conditions are met.

Thus, self-employment taxes are categorized differently from the other options listed, making it the correct choice as something that is not a characteristic of Miscellaneous Itemized Deductions.