Deductions and Write-Offs

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.

You cannot deduct parking at your regular place of work because it's considered a commuting expense. Parking and other transportation expenses are often deductible, even by employees, if you work at more than one location in one day or work on a temporary basis away from your regular workplace.

There is a phase-out of itemized deductions for taxpayers with AGI above $259,400 (individual filers), $311,300 (MFJ), $285,350 (H of H).

No. You may elect to use an Alternative Depreciation System (ADS) which applies straight-line depreciation over the applicable ADS recovery period. This is in contrast to the MACRS double-declining method which would generally yield a higher deduction in the earlier years.

MACRS 3 year property includes race horses over 2 years old when placed in service, non-race horses more than 12 years old when placed in service,
qualified rent to own property,
special tools used in the manufacture of plastic products or rubber products, or motor vehicles. .

MACRS 5 year property includes cars, taxis, buses, light general purpose trucks (less than 13,000 lbs),
typewriters, calculators, copiers, duplicating machines, computers and peripheral equipment, including appliances,
carpets, furniture used in a residential rental real estate activity,
breeding cattle and dairy cattle and property used in research and development.

MACRS 7 year property includes office furniture and fixtures such as desks, files, safes, cellular phones, fax machines and any property that does not have a class life and not classified by the IRS.

Most tangible, depreciable property placed in service after 1986 is called MACRS property. MACRS 10-year property includes vessels, barges, tugs and similar water transportation equipment, any tree or vine bearing fruit or nuts, and single purpose agricultural or horticultural structures.