Can I Deduct?

House improvements

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Improvements to your Residence are not deductible.
The costs are added to your initial cost basis to calculate your increased adjusted cost basis.
Your increased cost basis will be used in the year of sale of your residence to determine the gain on sale.
Improvements to your Rental property are deductible as a repair or a depreciable capital improvement.
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Can I Deduct?

Funeral expenses

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Funeral expenses are not deductible on an individual's personal tax return.
Funeral expenses are deductible on an decedent's federal Estate tax return, Form 706.
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Can I Deduct?

Dog or Cat expenses

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Your pet medical and other expenses 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

CPA Answer:

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?

Credit card interest

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Generally, only mortgage interest is deductible
Credit card interest for nonbusiness purchases are not deductible.
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Can I Deduct?

Loss on sale of residences

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

The loss on your sale of your residence is not deductible.
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Can I Deduct?

Driving to work

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

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?

Nondeductible expenses

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

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?

Fully Deductible Miscellaneous Itemized deductions

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Common Fully deductible deductions not subject to the 2% AGI limitation are:
Amortizable premium on taxable bonds
Casualty and theft loss from income producing property
Estate taxes on income in respect of a decedent
Gambling losses, up to the amount of gambling winnings
Special job related expenses of the handicapped
Unrecovered cost of annuities on a decedent's final return
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