Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
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Answer Tax QuestionsCar loan Interest
Asked Monday, September 25, 2000 by an anonymous user
No. Interest on personal loans such as car and credit card loans are not deductible. Home mortgage loans and interest for loans for business purposes are deductible.
Co-operative apartment Interest
Asked Monday, September 25, 2000 by an anonymous user
Yes. You may claim interest on acquisition or home equity debt loans on residences. A residence includes a house, condominium, cooperative apartment, houseboat, mobile home or house trailer that has sleeping, cooking, and toilet facilities.
The deduction is allowed on IRS Schedule A.
The deduction is allowed on IRS Schedule A.
Home equity loan Interest
Asked Monday, September 25, 2000 by an anonymous user
Yes. There are specific criteria and limitations associated with home equity loans, but you can deduct these expenses on IRS Schedule A with any other mortgage interest.
Pre-payment Penalty
Asked Monday, September 25, 2000 by an anonymous user
Yes. The penalty you paid for pre-payment of your mortgage is deductible
as mortgage interest on IRS Schedule A.
Are travel expenses associated with my taking courses to maintain my job skills deductible?
Asked Saturday, September 23, 2000 by an anonymous user
Yes. If the courses qualify as deductible educational expenses to improve and maintain your job skills, then the local transportation and travel away from home are deductible. The costs of transportation from your job to school is fully deductible and from school back home is deductible only if school is considered to be on a temporary basis (school will last 1 year or less is temporary basis). The deductible educational expenses will be taken on Form 2106 or on Schedule A, as a miscellaneous deduction subject to the 2% limitation.
Can I claim a home office deduction for the room I set up to maintain my investments in?
Asked Saturday, September 23, 2000 by an anonymous user
No. Unless this investing is your primary business, it cannot be claimed as a home office deduction.
Is the loss on my sale of my house deductible?
Asked Saturday, September 23, 2000 by an anonymous user
No. There is no deduction allowed for a loss on a personal residence.
Travel between my two jobs - deductibility
Asked Saturday, September 23, 2000 by an anonymous user
The travel from one job location to a second job location is deductible. The travel from your home to the first job location and from your second job location returning home is considered commuting and not deductible. For the current year you are allowed 55.5 cents per mile for business miles driven, which would be claimed on Schedule A as a miscellaneous itemized deduction subject to the 2% limitation.
Is the $10,000 prize I won as a game show contestant taxable?
Asked Friday, September 22, 2000 by an anonymous user
Yes. A prize or award of merchandise is taxable at its fair market value. In general, the FMV would be the amount a person would receive upon resale to the general public.
There is an exception when prizes and awards are non-taxable. In general, the exception applies when the award or prize is in recognition of charitable, religious, educational, scientific, literary, civic or artistic achievements.
There are other criteria involved. Speak to your local CPA for the taxability of the prize or award won.
There is an exception when prizes and awards are non-taxable. In general, the exception applies when the award or prize is in recognition of charitable, religious, educational, scientific, literary, civic or artistic achievements.
There are other criteria involved. Speak to your local CPA for the taxability of the prize or award won.
