itemized deductions (1 Viewer)

[DomePatrol2005]

Any familiar with itemizing? Any common itemized deductions i may be missing?

 

[Jeff Miller]

home mortgage interest
student loan interest
student tuition costs
energy efficiency home upgrade costs
out of pocket medical expenses
out of pocket child care costs
state and local income and sales taxes

 

[Det. Brees]

Do you work from home. Does you job require u to have a home office.

 

[doctorj]

Do you work from home. Does you job require u to have a home office.

I was taught the "home office" deduction was the biggest red flag the IRS had for audits. Only do it if it is a true home office and you can prove every expense. Also medical deductions have to be 7 1/2 of your yearly income before you could deduct it (last I heard). Check out the present law.

 

[dtc]

Do you work from home. Does you job require u to have a home office.

Home office deductions can be a bad wrap.

They supposedly trigger audits and unless you're doing only your actual work from home and no commingling bill paying and kids homework then it's probably not worth taking. Even then, it has ramifications when you sell your house as the amount your deducting as office expense must be considered and your basis adjusted.

 

[soupcan dan]

charitable donations. get over to the goodwill store and get a blank receipt slip for what you (ahem) donated.

 

[BobE]

man I hate tax time. thankfully I pay some one to do all this crap for me.

 

[doctorj]

man I hate tax time. thankfully I pay some one to do all this crap for me.

Me too because who else can understand the ever changing thoughts of the US tax code.

 

[saintfan]

I am a tax preparer. What do you need to know?

 

[Det. Brees]

I was taught the "home office" deduction was the biggest red flag the IRS had for audits. Only do it if it is a true home office and you can prove every expense. Also medical deductions have to be 7 1/2 of your yearly income before you could deduct it (last I heard). Check out the present law.

A few years ago I received a large settlement. When I put this money in the bank it triggered an audit. The agent gave me no grief about my home office. She even pointed out a few things I hadn't claimed.

 

[doctorj]

A few years ago I received a large settlement. When I put this money in the bank it triggered an audit. The agent have me no grief about my home office. She even pointed out a few things I hadn't claimed.

You definitely had a home office then. I just want to warn people to be prepared to defend it. You were audited. QED.

 

[gwballin]

The thing with a home office (in part) is that it has to be exculsivly used for such a purpose. As soon as any personal use is involved one is no longer entitled to the deduction.

In terms of taking it into account when selling your home, depreciation allowed or allowable has to recaptured as ordinary income. Notice I said "or allowable" because even if you didn't take the deduction you'll have to take it into account if you could have taken the deduction.