Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
Is the monthly parking space fee I pay for behind the business I work at, deductible?
Asked Monday, October 16, 2000 by an anonymous userCPA Answer:
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.
Do I always get to deduct the full amount of my itemized deductions ?
Asked Thursday, October 05, 2000 by an anonymous userCPA Answer:
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).
Depreciation - Alternative Depreciation System (ADS)
Asked Wednesday, October 04, 2000 by an anonymous userCPA Answer:
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.
Claim your parent - lives with you as a dependent and receiving social security
Asked Tuesday, October 03, 2000 by an anonymous userCPA Answer:
Probably yes. Gross income for the dependent test does not include non-taxable social security, tax exempt interest or gifts.
For tax year 2013, if his gross income is less than $3,900, then he satisfies the gross income test criteria for claiming him as dependent.
Speak to your local CPA to verify if your father meets the other 4 dependency tests so you can claim him as a dependent.
For tax year 2013, if his gross income is less than $3,900, then he satisfies the gross income test criteria for claiming him as dependent.
Speak to your local CPA to verify if your father meets the other 4 dependency tests so you can claim him as a dependent.
Depreciation - 3 year property
Asked Tuesday, October 03, 2000 by an anonymous userCPA Answer:
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. .
qualified rent to own property,
special tools used in the manufacture of plastic products or rubber products, or motor vehicles. .
Depreciation - 7 year property
Asked Tuesday, October 03, 2000 by an anonymous userCPA Answer:
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.
Depreciation - 10 year property
Asked Tuesday, October 03, 2000 by an anonymous userCPA Answer:
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.
Depreciation - 20 year property
Asked Tuesday, October 03, 2000 by an anonymous userCPA Answer:
Most tangible, depreciable property placed in service after 1986 is called MACRS property. MACRS 20-year property includes farm buildings other than agricultural or horticultural structures and some municipal sewers not classified as 25 year property,
Depreciation - 25 year property
Asked Tuesday, October 03, 2000 by an anonymous userCPA Answer:
Most tangible, depreciable property placed in service after 1986 is called MACRS property. MACRS 25 year property includes certain water utility property.