Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
For Tax Payers
Need professional help with a specific tax issue or have general tax questions? Ask a CPA is the easiest way to get advice from a licensed accountant in our network.
Ask a Tax QuestionFor Accountants
Provide answers to tax questions and introduce your practice to new potential clients. Build your CPAdirectory profile and earn reputation points.
Answer Tax QuestionsCharitable volunteer work - auto expenses
Asked Tuesday, September 26, 2000 by an anonymous user
You may deduct the actual travel expenses or a mileage allowance of 14 cents a mile on IRS Schedule A as a non-cash contribution.
Dinner dance - deductible ?
Asked Tuesday, September 26, 2000 by an anonymous user
A donation that provides goods or services must have the fair market value of the goods or services deducted from the contribution amount.
The amount of the deduction is limited to the amount that exceeds the benefit.
The charitable deduction is limited to the amount of the donation, less the fair market value of the dinner and is deducted on IRS Schedule A contributions.
The amount of the deduction is limited to the amount that exceeds the benefit.
The charitable deduction is limited to the amount of the donation, less the fair market value of the dinner and is deducted on IRS Schedule A contributions.
Donated real estate - Appraiser fees
Asked Tuesday, September 26, 2000 by an anonymous user
The fees paid for appraisal of donated property, such as real estate or art, are deductible as a miscellaneous deduction on IRS Schedule A subject to the 2% limitation.
Charitable contributions - Income Limitations
Asked Tuesday, September 26, 2000 by an anonymous user
There are 50%, 30% and 20% ceiling amounts allowed based on your adjusted gross income.
The amount of the contribution and the type of cash or property donation, will determine the current year allowed amount. Any amount limited in the current year can be carried over during the next 5 years.
In general, cash and ordinary income property and capital gain property held less than 12 months would be considered 50% property.
Speak to your local CPA about the deductibility of your contributions.
The amount of the contribution and the type of cash or property donation, will determine the current year allowed amount. Any amount limited in the current year can be carried over during the next 5 years.
In general, cash and ordinary income property and capital gain property held less than 12 months would be considered 50% property.
Speak to your local CPA about the deductibility of your contributions.
Are the costs I incur to entertain business clients in my home deductible?
Asked Tuesday, September 26, 2000 by an anonymous user
Yes. If a business discussion occurs before, during or after the meal, then the costs of entertaining clients or business customers at your home is deductible. You should always keep a business diary listing the location, customers' names, business discussed and the date to substantiate your business expenses.
Nursery school payments
Asked Monday, September 25, 2000 by an anonymous user
The amount you pay for nursery school or day-care that enables you (and your spouse on a joint tax return) to earn income can be used to calculate a Child Care Tax credit.
Can I claim a deduction for the costs of transportation for my child to the day care center ?
Asked Monday, September 25, 2000 by an anonymous user
No. The costs of driving a dependent to or from a day-care center, or any other transportation, are not deductible and can not be used in a calculation of a child care tax credit.
Child Care Credit - payments to mother who lives with me
Asked Monday, September 25, 2000 by an anonymous user
No. If you claim a relative as a dependent on your tax return, you may not claim a deduction or a child care tax credit for the payments made.
Standard Meal Allowance - in place of the actual meal costs
Asked Monday, September 25, 2000 by an anonymous user
Yes. While away from home on business trips, if you find it difficult to maintain the actual records of meal costs, you may use a standard IRS meal allowance. The basic meal allowance in the U.S. for the current year is $52 a day. There are higher high-cost major metropolitan area rates available. You must keep a diary which includes the time, place and business purpose of the trip. Speak to your local CPA for the meal allowance in your area in your state. The rates are available online at www.gsa.gov/perdiem and in IRS Pub 1542.
