Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
Is my margin interest from my brokerage account reported to the IRS ?
Asked Friday, January 26, 2001 by an anonymous userCPA Answer:
The IRS does not require brokerage firms to report margin interest on the form 1099-INT. Generally, the amount is reported on the statement you receive from your brokerage firm as margin interest paid on the non-reportable section of the Consolidated 1099.
My daughter turned 19 in December, Can I use her for the child tax credit calculation ?
Asked Wednesday, January 17, 2001 by an anonymous userCPA Answer:
No. She is not a qualifying child for the child tax credit because she was not under age 19 as of the end of the year.
Can I claim a child tax credit for my grandchild that lives with me that I claim as a dependent ?
Asked Wednesday, January 17, 2001 by an anonymous userCPA Answer:
A qualifying child for the child tax credit must be a grandchild, son or daughter, adopted child or eligible foster child. That child must live with you and you claim her as a dependent and she is under age 17 at the end of the year and a citizen or resident of the US. If so, then you can claim her as a qualifying child for the child tax credit.
What is the amount that receipts for business transportation and entertainment expenses are required ?
Asked Tuesday, January 16, 2001 by an anonymous userCPA Answer:
Generally, IRS no longer requires receipts for business transportation and entertainment unless the expense exceeds $75. A business diary with details of the time, place, person you met with and the reason for the meeting should always be maintained. Your expenses for lodging always require detailed receipts, regardless of the amount.
Child Tax Credit - Partially limited - Carry forward or lost
Asked Tuesday, January 16, 2001 by an anonymous userCPA Answer:
Any unused Child Tax Credit cannot be carried forward to future years.
The credit begins its phase-out at Adjusted Gross Income of $110,000 for married taxpayers filing joint returns.
For single taxpayers or those filing as head of household the threshold is $75,000.
For married filing separate returns the threshold is $55,000.
The credit begins its phase-out at Adjusted Gross Income of $110,000 for married taxpayers filing joint returns.
For single taxpayers or those filing as head of household the threshold is $75,000.
For married filing separate returns the threshold is $55,000.
Are the travel costs I incurred to see my Attorney about my investments deductible ?
Asked Wednesday, January 03, 2001 by an anonymous userCPA Answer:
Travel costs to speak with your attorney, CPA, investment advisor about your investments or the production of income can be deducted as a miscellaneous itemized deduction subject to the 2% AGI limitation on IRS Schedule A.
Are the travel costs I incurred to see my CPA about my investments deductible ?
Asked Wednesday, January 03, 2001 by an anonymous userCPA Answer:
Travel costs to speak with your attorney, CPA, investment advisor about your investments or the production of income can be deducted as a miscellaneous itemized deduction subject to the 2% AGI limitation on IRS Schedule A.
Are the travel costs I incurred to see my accountant about my investments deductible ?
Asked Wednesday, January 03, 2001 by an anonymous userCPA Answer:
Travel costs to speak with your attorney, CPA, investment advisor about your investments or the production of income can be deducted as a miscellaneous itemized deduction subject to the 2% AGI limitation on IRS Schedule A.
Are the travel costs I incurred to see my Investment advisor about my investments deductible ?
Asked Wednesday, January 03, 2001 by an anonymous userCPA Answer:
Travel costs to speak with your attorney, CPA, investment advisor about your investments or the production of income can be deducted as a miscellaneous itemized deduction subject to the 2% AGI limitation on IRS Schedule A.