Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
Blood donation to the Red Cross - deductible ?
Asked Tuesday, January 02, 2001 by an anonymous userCPA Answer:
No. Blood donation to the red cross or hospital or other blood banks is not tax deductible.
Donation to International Charitable organizations
Asked Tuesday, January 02, 2001 by an anonymous userCPA Answer:
Generally, No. Contributions to a foreign charitible organizations or to foreign governments are not tax deductible unless the organization obtained 501 (c) 3 designation from the IRS.
Fair rental value of office used by Red Cross
Asked Tuesday, January 02, 2001 by an anonymous userCPA Answer:
You may not deduct the rental value of property you allow a charity to use without charge.
U.S. Savings bonds - donation
Asked Tuesday, January 02, 2001 by an anonymous userCPA Answer:
U.S. savings bonds are nonnegotiable and are not transferrable. You may not donate U.S. savings bonds. You can cash the bonds in and then donate the proceeds or turn the bonds in and have them reissued in the donee's name.
Gifts - Basis of property
Asked Friday, December 22, 2000 by an anonymous userCPA Answer:
Generally, the basis to the donee is the same as in the hands of the donor at the date of the gift.
To figure the basis of property you get as a gift, you must know its adjusted basis to the donor just before it was given to you. You also must know its fair market value (FMV) at the time it was given to you and any gift tax paid on it.
The basis to determine if there is a loss on the sale of a gift is the value as in the hands of the donor at the date of the gift or the fair market value Whichever is lower.
There is no gain or loss on a sale of a gift when the selling price is less than the basis for the gain and more than the basis for the loss calculation.
The basis of property received is increased by the amount of gift tax attributable to the net appreciation in value of the gift.
The net appreciation is the amount by which the fair market value of the gift exceeds the donor's adjusted basis immediately before the date of the gift.
To figure the basis of property you get as a gift, you must know its adjusted basis to the donor just before it was given to you. You also must know its fair market value (FMV) at the time it was given to you and any gift tax paid on it.
The basis to determine if there is a loss on the sale of a gift is the value as in the hands of the donor at the date of the gift or the fair market value Whichever is lower.
There is no gain or loss on a sale of a gift when the selling price is less than the basis for the gain and more than the basis for the loss calculation.
The basis of property received is increased by the amount of gift tax attributable to the net appreciation in value of the gift.
The net appreciation is the amount by which the fair market value of the gift exceeds the donor's adjusted basis immediately before the date of the gift.
Union pension fund - mandatory contributions to retirement annuity
Asked Wednesday, December 20, 2000 by an anonymous userCPA Answer:
You can not take a deduction for the mandatory contributions you make to your union pension fund that is used to purchase a retirement annuity. The contributions are considered the cost of the annuity.
Art charitable contribution - Appraiser fee
Asked Wednesday, December 20, 2000 by an anonymous userCPA Answer:
Amounts you paid to an appraiser for determining your art charitable contribution are deductible as a miscellaneous itemized deduction on IRS Schedule A subject to the 2% MAGI limitation.
Are the taxi fares I incurred to the airport on my business trip deductible ?
Asked Wednesday, December 20, 2000 by an anonymous userCPA Answer:
Taxi fares and other costs of transportation (bus, train)to and from the airport or station and your hotel is deductible if for a business trip away from home.
Kiwanis club - Dues
Asked Wednesday, December 20, 2000 by an anonymous userCPA Answer:
Dues paid to trade associations, community booster clubs, chamber of commerce's like the Kiwanis club are deductible as an miscellaneous itemized deduction on IRS Schedule A subject to the 2% MAGI limitation.