Ask a CPA

An individual's share of partnership losses (reportable to a partner on a schedule K-1) may not exceed the adjusted basis of the partnership interest. The basis is generally the original capital paid, plus accumulated taxed earnings that have not been withdrawn, less withdrawals.
Partners are subject to the at-risk loss limitation and the passive activity loss limitation rules.
The at-risk limit affects the amount of the loss to the portion that that partner is personally liable for. Generally a passive loss is limited to either passive income or up to $25,000 if there is active participation in a rental real estate activity.
There is no easy way to explain these rules. Please contact a local CPA to determine the deductibility of the loss reported on Schedule K-1. This area of the tax code is quite complex and confusing to many.

If you are a more than a 2% stockholder, the health insurance premiums paid by your S corporation employer for you and your family is treated as additional wages to you.
The amount will be reported on your Form W-2. You are entitled to deduct the health insurance premium income amount as an adjustment to income on your tax return.
The adjustment will be reported on IRS Form 1040, page 1, Line 29.

Income averaging is only available for farmers or Fisherman. Farmers are individuals, partnerships, corporations or syndicates that cultivate land, or raise or harvest any agricultural or horticultural commodity either as owners or tenants. A farmer may elect to average the current year's income over the three prior years using IRS Schedule J. Income averaging may not be elected by estates or trusts. Speak to your local CPA if you are a farmer or fisherman who is considering income averaging as a tax strategy.

If you meet the criteria for a "performing artist", you may use your business deductions to arrive at an adjusted gross income.
The deductions are not considered an itemized deduction, but rather as an offset against adjusted gross income. Speak to your local CPA to determine if you meet the criteria for a "performing artist" and whether you can take advantage of this income offset reportable on IRS Form 2106.

Generally, union, professional society, trade association, booster club, Chamber of Commerce dues are deductible as an itemized deduction subject to the 2% AGI limitation on IRS Schedule A.
Voluntary payments to a union unemployment strike or benefit fund are not deductible.
Costs for running for a union office are not deductible.
Job related subscriptions to professional journals and trade magazines are deductible as an itemized deduction subject to the 2% AGI limitation on IRS Schedule A.

If you can claim the expense of purchasing uniforms or special work clothes, then the cleaning, laundering, and repair of those items are also deductible as an itemized deduction subject to the 2% AGI limitation on IRS Schedule A.

The IRS has strict guidelines as to who may fully expense or depreciate the cost of purchasing a computer.
The computer must be used for the "convenience of your employer" and also be required as a "condition of employment".
Condition of employment means you cannot properly do your job without it. Computers are considered "listed property" subject to IRS restrictions.
The computer must be required for the job and be inextricably related to proper job performance.
The purchase of the computer must be a mandatory job requirement, not just a convenience for the employee.

Cellular phone equipment (similar to computers) must be used for the "convenience of the employer" and be a "condition of employment" for the taxpayer in order for it to be fully expensed or for the cellular phone costs to be depreciated.
Condition of employment means you cannot properly do your job without it.
You may write off the cost under the first year expensing rule or use a 5 year MACRS life for depreciation.

If you purchase your own small tools for use on your job and they are not reimbursed from your employer, you may deduct the cost as an itemized deduction subject to the 2 % limitation on Schedule A.
If the tools have an expected useful life of more than one year, then the costs should be depreciated or the first year expense election may be taken.

In general the costs of commuting between a taxpayer's home and work location are non-deductible personal expenses. There are exceptions to this rule for commuting to a temporary work location.
If you purchase an auto that you use for work (i.e. a salesman)you may claim the actual unreimbursed expenses or the IRS mileage allowance, whichever is higher. The expense is claimed on IRS Form 2106.
There are limitations on the actual expenses that may be taken each year. In the current year, the standard mileage rate is 56.5 cents per milefor business miles driven.
The maximum first year actual depreciation deduction is $11,160 if bonus depreciation claimed. Speak to your local CPA if you are commuting to a temporary work location or need guidance in your first year actual verses mileage expense election.