I need more deductions!

Website design By BotEap.comWe can start filing personal taxes in a few days, this coming Monday. (Note that the IRS STILL won’t have several forms ready to go until the end of next week. Thanks to retroactive changes to the law that Congress passed late last month.)

Website design By BotEap.comSo let’s go over what it can and can’t do.

Website design By BotEap.comOh no you can’t!!!!!

Website design By BotEap.comLet’s start with what you used to do and can’t anymore.

Website design By BotEap.comDon’t bother charging your employees for all expenses that your boss never bothered to reimburse you for. They are no longer deductible, whether or not they exceed 2% of your adjusted gross income. (Which is fine, as many of you won’t be able to go into detail anyway.)

Website design By BotEap.comEXCEPT… (This is the tax code – there are ALWAYS exceptions)

Website design By BotEap.comIf you are in the Reserves (i.e. the military, friends), have any type of disability and have work expenses based on a disability, are a fee-based state or local government official, or a qualified artist, then you can deduct those expenses related to these acts. You must use Form 2106 or 2016-EZ and add the calculated deduction to line 11 of Schedule 1 (Form 1040).

Website design By BotEap.comNow for those never again.

Website design By BotEap.comDisplacements are not deductible (unless, in a very limited sense, we are talking about the above persons)

Website design By BotEap.comLobbying is not deductible (that means even if you travel to Washington DC to convince someone to pass some legislation)

Website design By BotEap.comCampaign contributions (no, they are never charitable! And advertising in a convention newsletter, dinner, or program at such events are also your out-of-pocket expenses).

Website design By BotEap.comFines and Penalties (those traffic tickets, parking tickets, etc. are all your personal expenses for being a violator)

Website design By BotEap.comBecause of the club (It doesn’t matter if you hold business meetings there; only the cost of food is allowed, if genuine business is discussed. This includes airline clubs, unless you actually do, and document the business matters involved, and deduct the DAILY cost of the visit.)

Website design By BotEap.comMoving charges. I have already written about this missed deduction. (Unless you’re in the military and have orders to move, there’s no way you can deduct your moving costs. Worse yet, your employer may have to report the moving expenses they paid on your behalf as taxable income for Between this loss of deduction – and the loss of the ability to cover the costs to search for a new job – the historic migration of Americans has largely tempered.

Website design By BotEap.comWoo-hoo. They are back!

Website design By BotEap.comCongress (and TheDonald) retroactively amended the tax code in December with the budget reconciliation bill. In particular, this change may help many people reconsider whether they can itemize this year.

Website design By BotEap.comMedical expenses. As long as they exceed 7.5% of your adjusted gross income. Money spent below the threshold is all yours to spend; above the threshold is deductible. This includes fertility treatment, alcoholism treatment (inpatient, including meals and lodging), anti-smoking programs (but only prescription drugs, not nicotine patches), and service animals (purchasing, training, keeping [including food!] everything counts Sorry, Weight Watchers, Nutrisystem and the like don’t qualify, UNLESS your doctor has prescribed a program (obesity or cardiopulmonary causes). Neither are those cold remedies (and other over-the-counter medications except insulin) and certainly NOT cosmetic surgery.

Website design By BotEap.comFor those special cases…

Website design By BotEap.comGambling losses are deductible. About. As long as your earnings meet or exceed those costs. (In other words, you’re mitigating the gambling winnings you’re required to report.)

Website design By BotEap.comCasualty and theft losses. Only for income-producing property. Such as rental property and vacant lots. Or, if you (God forbid) were affected among others in a Federal Disaster Area. Also, if you trade gold and silver, yes, that could also be boosted. (You already deduct losses on stocks and bonds on Schedule D and Form 4797, to the extent of your earnings PLUS $3,000. Ponzi scheme sufferers can also deduct losses against earnings. So, that loss of $300,000 can take you 100 years to deduct. You may live that long.)

Website design By BotEap.comHome offices. You need to have a business, that means Schedule C (properties and temporary workers), Schedule E (rental property, K-1 beneficiaries WORKING in that business), and/or Schedule F filers (farmers).

Website design By BotEap.comspecial debt. NO clubs, but chambers of commerce, boards of trade, trade leagues, civic or public service organizations, trade associations, professional societies, and real estate boards are specifically approved. NOT owed by the union (since they are expenses of the employees, friends).

Website design By BotEap.comI’ve already reported what kind of documents you need to have on hand for us to file your taxes.

Website design By BotEap.comWe are waiting!