Can I Deduct?

Marijuana - prescribed by a doctor

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Marijuana, even if prescribed by a doctor is not deductible.
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Can I Deduct?

Safe Deposit box

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Safe deposit or vault expenses are itemized deduction subject to the 2% AGI limitation.
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Can I Deduct?

Uniform cleaning

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

The costs of purchase and maintenance of a uniform are deductible.
The dry cleaning and maintenance costs of your work clothes such as suits and dresses are not deductible. To be deductible the clothing must be not be adaptable to everyday wear and be required as a condition of employment.
The dry cleaning and maintenance costs of uniforms and special clothing such as for nurse’s, police, and fireman are deductible.
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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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Miscellaneous Income

Wrongful termination

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Generally damages received for Wrongful termination are taxable as compensation.
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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?

Vasectomy costs

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

The costs of a vasectomy and reversal of a vasectomy are deductible as a medical itemized deduction subject to the 7.5% limitation.
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Can I Deduct?

Vitamins and supplements

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Vitamins and other nutritional supplements are not deductible unless recommended by a medical practitioner as treatment for a specific physician diagnosed medical condition.
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