Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
Prepaid interest
Asked Tuesday, September 26, 2000 by an anonymous userCPA Answer:
No. Pre-paid business or investment interest must be amortized over the life of the loan. It may not be deducted in full in the year pre-paid.
Is the amount I pay for automobile license fees deductible?
Asked Tuesday, September 26, 2000 by an anonymous userCPA Answer:
Automobile license fees paid based on the cars year, model weight or horsepower are not deductible. Automobile license fees paid based on the value of the car "ad valorem" are deductible property taxes on IRS Schedule A. If you live in one of the following "ad valorem" states contact your local CPA to verify the deductibility:
Church donation in late December
Asked Tuesday, September 26, 2000 by an anonymous userCPA Answer:
A check dated and mailed at the end of the year is a charitable deduction on IRS Schedule A in that same year.
Sports club expenses - deductible ?
Asked Tuesday, September 26, 2000 by an anonymous userCPA Answer:
A sport's organization that provides athletic equipment or facilities would not be considered a qualifying organization.
In general, qualifying organizations include, but are not limited to: Religious entities such as churches or synagogues; Charitable organizations such as the Salvation Army, Girl Scouts or Red Cross; Scientific/Educational entities such as hospitals or colleges;
Domestic such as non-profit veterans organizations; or a Fraternal lodge organization. Speak to your local CPA who has an IRS list of approved tax-exempt organizations.
In general, qualifying organizations include, but are not limited to: Religious entities such as churches or synagogues; Charitable organizations such as the Salvation Army, Girl Scouts or Red Cross; Scientific/Educational entities such as hospitals or colleges;
Domestic such as non-profit veterans organizations; or a Fraternal lodge organization. Speak to your local CPA who has an IRS list of approved tax-exempt organizations.
Cancer Society - charitable donation of stock
Asked Tuesday, September 26, 2000 by an anonymous userCPA Answer:
You are allowed to claim the stocks as a charitable deduction on IRS Schedule A subject to AGI limitations the appreciated fair market value, not the cost.
The securities must be traded on a established securities market.
The securities must be traded on a established securities market.
Charitable volunteer work - auto expenses
Asked Tuesday, September 26, 2000 by an anonymous userCPA Answer:
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 userCPA Answer:
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 userCPA Answer:
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 userCPA Answer:
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.