Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
Job hunting
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
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.
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.
Funeral expenses
Asked Thursday, February 09, 2012 by an anonymous userCPA 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.
Funeral expenses are deductible on an decedent's federal Estate tax return, Form 706.
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.
Loss on sale of residences
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
The loss on your sale of your residence is not deductible.
Car loan interest
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
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.
Interest paid on car loans is not deductible except for business use of an auto for self-employed individuals.
Life insurance
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
The payments to life insurance policies are not 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.
Dog or Cat expenses
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
Your pet medical and other expenses are not deductible.
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.