Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
Driving to work
Asked Thursday, February 09, 2012 by an anonymous userCPA 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.
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.
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.
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.
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.
Tax Preparation fees
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
Tax preparation or Audit representation are deductible itemized deduction subject to the 2% of AGI limitation.
Union dues
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
Union dues are deductible itemized deduction subject to the 2% AGI limitation.
Life insurance
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
The payments to life insurance policies are not deductible.