Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
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.
Credit card interest
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
Generally, only mortgage interest is deductible
Credit card interest for nonbusiness purchases are not deductible.
Credit card interest for nonbusiness purchases are not deductible.
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.
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.
Union dues
Asked Thursday, February 09, 2012 by an anonymous userCPA Answer:
Union dues are deductible itemized deduction subject to the 2% AGI limitation.
Bonus Depreciation
Asked Tuesday, February 07, 2012 by an anonymous userCPA Answer:
Bonus depreciation is an accelerated deduction in the first year purchase of an asset. It is an additional incentive to purchase business assets and considered a measure of relief for small businesses that want to buy additional equipment.
in 2013, 50% is allowed.
in 2013, 50% is allowed.
Miscellaneous Itemized Deductions
Fully Deductible Miscellaneous Itemized deductions
Asked Tuesday, January 31, 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