Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
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.
House improvements
Asked Thursday, February 09, 2012 by an anonymous userCPA 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.
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.
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
Estate Planning fees
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
Generally, only estate planning fees related to tax matters are deductible. The fees need to be separated on the bill between nontax advice and tax advice and tax planning matters.
Laser vision surgery
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
Laser vision surgery such as Eye surgery for nearsightedness is deductible as a medical itemized deduction subject to the 7.5% limitation.
Drug addiction treatment costs
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
The costs for the treatment and meals and lodging at rehabilitation centers are deductible as medical itemized deductions subject to the 7.5% limitation.
Fertility costs
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
In vitro surgery or fertilization including surgery to reverse procedure are deductible as a medical itemized deduction subject to the 7.5% limitation.
Expenses to obtain a egg donor are also deductible as a medical itemized deduction subject to the 7.5% limitation.
Expenses to obtain a egg donor are also deductible as a medical itemized deduction subject to the 7.5% limitation.
Marijuana - prescribed by a doctor
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
Marijuana, even if prescribed by a doctor is not deductible.
Nursing home costs
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
Generally, the costs for medical care including meals and lodging are deductible. If the main reason of being in the nursing home is not primarily for medical care, only the portion allocated to medical care is deductible.