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Can I Deduct?

Driving to work

Asked Thursday, February 09, 2012 by an anonymous user
Generally daily commuting to work is not deductible. There are exceptions if the commuting is to a temporary work location, or has many work locations or the taxpayer's home is their principal place of business. You should speak to your CPA to determine if your commuting is deductible.
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Can I Deduct?

Loss on sale of residences

Asked Thursday, February 09, 2012 by an anonymous user
The loss on your sale of your residence is not deductible.
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Can I Deduct?

Car loan interest

Asked Thursday, February 09, 2012 by an anonymous user
Generally, only mortgage interest is deductible
Interest paid on car loans is not deductible except for business use of an auto for self-employed individuals.
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Can I Deduct?

Credit card interest

Asked Thursday, February 09, 2012 by an anonymous user
Generally, only mortgage interest is deductible
Credit card interest for nonbusiness purchases are not deductible.
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Can I Deduct?

Common Miscellaneous deductions subject to the 2% AGI

Asked Thursday, February 09, 2012 by an anonymous user
Common deductions subject to the 2% AGI limitation are:
Employee business expenses including travel, 50% of meals & entertainment, phone, small tools, supplies, professional subscriptions and books, depreciation on business use of auto's and equipment, small tools
Safety equipment such as hard hats, gloves, steel tipped boots, gogles,
Educational expenses not claimed as a credit
Tax preparation and tax assistance fees
Union and professional dues
Job hunting
Tax preparation and tax assistance fees
Educational expenses not claimed as a credit
Seminar and Conferences that are business related
Appraisal fees on charitable donations
Credit card convenience fee for maintaining investments
Investment expenses
SEP,Simple,IRA custodial fees paid with funds outside the account
Legal fees for collecting taxable income
Loss on deposits in a bankrupt financial institution
Medical exams required by employers
Safe deposit box fees
Trust administration fees
Uniform purchase and maintenance if required and not suitable for street wear
Home office deductions
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Can I Deduct?

Nondeductible expenses

Asked Thursday, February 09, 2012 by an anonymous user
Common nondeductible expenses are:
Work clothes suitable for street wear
Commuting expenses
Credit card fees or Interest
Club dues
Divorce Legal fees
Political contributions
Cost of entertaining friends
Telephone expenses of first main line
Tax exempt income expenses
Funeral expenses
Gambling losses in excess of gambling winnings
Hobby expenses in excess of hobby income
Homeowner's association assessments
Pet and animal expenses
Residence repairs and improvements
Residence Loss on Sale
Life Insurance
Parking tickets and fines
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Can I Deduct?

Political contributions

Asked Thursday, February 09, 2012 by an anonymous user
Political contributions are not deductible.
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Can I Deduct?

Divorce - Lawyer fees

Asked Thursday, February 09, 2012 by an anonymous user
Generally, you may not deduct legal fees paid for arranging a divorce, separation agreement or for defending your spouse's demand for alimony.
Only the fees to collect alimony or for tax advice are deductible as a miscellaneous itemized deduction subject to the 2% AGI limitation.
Legal fees relating to child support are not deductible.
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Can I Deduct?

Job hunting

Asked Thursday, February 09, 2012 by an anonymous user
Job hunting expenses looking for a new job in your present line of work is deductible as an itemized deduction subject to the 2% of AGI limitation.
Expenses would include the costs or resumes, agency fees, transportation to interviews, newspapers bought for employment advertisements.
Expenses incurred looking for a new job in a new trade or business is not deductible.
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