Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
Standard Meal Allowance - in place of the actual meal costs
Asked Monday, September 25, 2000 by an anonymous userCPA Answer:
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.
Is the total amount I paid for travel by a cruise ship on a business trip deductible?
Asked Monday, September 25, 2000 by an anonymous userCPA Answer:
No. Cruise ship costs are limited to twice the highest per day rate for travel in the U.S. on that date, multiplied by the number of days in transit.
Car loan Interest
Asked Monday, September 25, 2000 by an anonymous userCPA Answer:
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 userCPA Answer:
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 userCPA Answer:
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.
Are travel expenses associated with my taking courses to maintain my job skills deductible?
Asked Saturday, September 23, 2000 by an anonymous userCPA Answer:
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.
Is my trip to Spain deductible because I am a Spanish teacher ?
Asked Saturday, September 23, 2000 by an anonymous userCPA Answer:
No deduction is allowed for costs of travel claimed as a form of education to maintain familiarity with the country's culture or language or customs.
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 userCPA Answer:
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 userCPA Answer:
No. There is no deduction allowed for a loss on a personal residence.