Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
Nondeductible expenses
Asked Thursday, February 09, 2012 by an anonymous userCPA 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
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
Fully Deductible Miscellaneous Itemized deductions
Asked Thursday, February 09, 2012 by an anonymous userCPA 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
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
Telephone expenses
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
Basic local phone service for the first residential line even if used for business is not deductible.
business use of a second phone line or cell phone is deductible.
business use of a second phone line or cell phone is deductible.
Youth Programs
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
Team sports dues, uniform, tournament, travel expenses are not deductible.
Social Security
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
The Social Security and Medicare withholding Taxes taken out of your paycheck and summarized on your W-2 form is not a tax deduction.
Union dues
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
Union dues are deductible itemized deduction subject to the 2% AGI limitation.
Safe Deposit box
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
Safe deposit or vault expenses are itemized deduction subject to the 2% AGI limitation.
Uniform cleaning
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
The costs of purchase and maintenance of a uniform are deductible.
The dry cleaning and maintenance costs of your work clothes such as suits and dresses are not deductible. To be deductible the clothing must be not be adaptable to everyday wear and be required as a condition of employment.
The dry cleaning and maintenance costs of uniforms and special clothing such as for nurse’s, police, and fireman are deductible.
The dry cleaning and maintenance costs of your work clothes such as suits and dresses are not deductible. To be deductible the clothing must be not be adaptable to everyday wear and be required as a condition of employment.
The dry cleaning and maintenance costs of uniforms and special clothing such as for nurse’s, police, and fireman are deductible.
Legal fees
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
Generally, Individuals can deduct legal expenses incurred in attempting to produce or collect taxable income or paid in connection with the collection, refund or determination of tax.
You may not deduct legal fees incurred in obtaining tax-free damages for physical injury or sickness.
Businesses can deduct legal fees for the production or collection of income or for the management of income producing property.
You may not deduct legal fees incurred in obtaining tax-free damages for physical injury or sickness.
Businesses can deduct legal fees for the production or collection of income or for the management of income producing property.