Can I Deduct?

Common Miscellaneous deductions subject to the 2% AGI

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Common deductions subject to the 2% AGI limitation are:
Employee business expenses including travel, 50% of meals & entertainment, phone, small tools, supplies, professional subscriptions and books, depreciation on business use of auto's and equipment, small tools
Safety equipment such as hard hats, gloves, steel tipped boots, gogles,
Educational expenses not claimed as a credit
Tax preparation and tax assistance fees
Union and professional dues
Job hunting
Tax preparation and tax assistance fees
Educational expenses not claimed as a credit
Seminar and Conferences that are business related
Appraisal fees on charitable donations
Credit card convenience fee for maintaining investments
Investment expenses
SEP,Simple,IRA custodial fees paid with funds outside the account
Legal fees for collecting taxable income
Loss on deposits in a bankrupt financial institution
Medical exams required by employers
Safe deposit box fees
Trust administration fees
Uniform purchase and maintenance if required and not suitable for street wear
Home office deductions
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Can I Deduct?

Credit card interest

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Generally, only mortgage interest is deductible
Credit card interest for nonbusiness purchases are not deductible.
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Can I Deduct?

Car loan interest

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Generally, only mortgage interest is deductible
Interest paid on car loans is not deductible except for business use of an auto for self-employed individuals.
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Can I Deduct?

Telephone expenses

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Basic local phone service for the first residential line even if used for business is not deductible.
business use of a second phone line or cell phone is deductible.
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Can I Deduct?

Youth Programs

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Team sports dues, uniform, tournament, travel expenses are not deductible.
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Can I Deduct?

Social Security

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

The Social Security and Medicare withholding Taxes taken out of your paycheck and summarized on your W-2 form is not a tax deduction.
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Can I Deduct?

Tax Preparation fees

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Tax preparation or Audit representation are deductible itemized deduction subject to the 2% of AGI limitation.
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Can I Deduct?

Union dues

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Union dues are deductible itemized deduction subject to the 2% AGI limitation.
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Can I Deduct?

Legal fees

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Generally, Individuals can deduct legal expenses incurred in attempting to produce or collect taxable income or paid in connection with the collection, refund or determination of tax.
You may not deduct legal fees incurred in obtaining tax-free damages for physical injury or sickness.
Businesses can deduct legal fees for the production or collection of income or for the management of income producing property.
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Miscellaneous Income

Punitive damages

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Punitive damages are taxable even if they relate to a physical injury or sickness. An exception to this exists for damages awarded under a state wrongful death statute.
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