Deductions and Write-Offs

The appraisal fees you paid to determine the fair market value of your donated artwork is not deductible as part of the contribution. The fees would be considered a miscellaneous itemized deduction reported on IRS Schedule A, subject to the 2% AGI limitation.

The IRS created a list of qualified tax exempt organizations for purposes of a charitable contribution deduction. The list is included in IRS Publication 78. It can also be accessed at http://www.irs.ustreas.gov/bus_info/eo/eosearch.html

In order to avoid any future problems and to avoid any mismatching reports with the IRS, you should include this amount on IRS Schedule B both as a positive and negative amount. Enter the Form 1099-INT amount on Schedule B, line 1 as income. Enter the same amount as a negative adjustment on Schedule B, line 1 and enter "Nominee Distribution" as the negative adjustment description. Speak to your local CPA if you have any questions about the reporting of this incorrect interest.

Money won in a charity raffle is considered gambling winnings and is fully taxable and reportable on your tax return. It it should be indicated on IRS Form 1040, line 21 as other income.

Generally, meal or entertainment expenses will be deductible with certain limitations as long as the meal or entertainment expenses are "directly related to" or "associated with" the active conduct of your trade or business and are not extravagant or lavish under the circumstances. Deductions are generally limited to 50% of the cost. Detailed recordkeeping should be kept to verify the deductions. Some locations considereed as entertainment venues are: nightclubs, cocktail lounges, theaters, golf and athletic clubs, country clubs, and sporting events.

Generally, the deduction for business gifts is limited to $25 a year for each recipient if the gift is made to an individual.
There is no dollar limit on the deductibility of a business gift made to a corporation, partnership or business entity. Gifts to a corporation or other business entity intended for the eventual use or benefit of an owner, shareholder or employee is subject to the $25 limitation.

Yes. Whether you choose the actual auto expenses, including depreciation or lease payments, or use the mileage allowance method, you can still deduct the actual business tolls and parking expense costs. You should maintain a record of the expenses and keep your receipts to verify the deduction.

MACRS is the abbreviation for Modified Accelerated Cost Recovery System. It is a statutory method of depreciation allowing accelerated rates for most types of property used in a business or income producing activities.

A useful way of funding college costs is to set up a IRS Section 2503(b) trust. Parents can each contribute $14,000 or $28,000 ($13,000 or $26,000 in 2012) per year, per child to this kind of trust and still qualify for the annual gift tax exclusion.
Funds within the trust can be accumulated and principal payments delayed until college.
A 2503b)trust requires that all income be paid annually or more frequently to the beneficiaries. Principal payments can be delayed until age 21.
Income distributions can be planned by various investment strategies. Principal can often be left in trust for periods of time exceeding the child's 21st birthday.