http://resources.lawinfo.com/en/Legal-FAQs/Deductions/index.html LawInfo - Legal Resource Center offers free legal forms and free legal documents that is designed to help consumers and businesses resolve their legal issues http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/what-is-itemizing-and-is-it-beneficial-to-me-.html "Itemizing" is listing on Form 1040 Schedule A all amounts you paid during the year for certain items such as medical and dental care, state and local income taxes, real estate taxes, home mortgage interest, and gifts to charity. When you complete your list, you total the amount spent and compare the total with your standard deduction. The larger of the two deductions, standard or itemized, will be the deduction to choose, since it will lower the amount of federal income tax you will owe. Tax Deductions FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/my-mother-is-in-a-nursing-home-and-i-pay-for.html You may deduct qualified medical expenses you pay for yourself, your spouse, and your dependents, including a person you claim as a dependent under a Multiple Support Agreement. You can also deduct medical expenses you paid for someone who would have qualified as your dependent except that the person did not meet the gross income or joint return test. Nursing home expenses are allowable as medical expenses in certain instances. If you, your spouse, or your dependent is in a nursing home or home for the aged, and the primary reason for being there is for medical care, the entire cost, including meals and lodging, is a medical expense. If the individual is in the home mainly for personal reasons, then only the cost of the actual medical care is a medical expense and the cost of the meals and lodging is not deductible. Tax Deductions FAQs Mon, 04 Jun 2007 21:51:22 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/i-paid-my-mothers-real-estate-taxes-last-year.html Generally not, you can usually only deduct taxes that are imposed on you. Tax Deductions FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/i-refinanced-my-home-last-year-and-paid-point.html No. Points paid solely to refinance your home mortgage cannot be deducted in the year paid. Instead, they must be deducted over the life of the loan. Tax Deductions FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/can-i-take-a-deduction-for-the-interest-i-pai.html Beginning January 1, 1998, taxpayers who have taken loans to pay the cost of attending an eligible educational institution for themselves, their spouse, or their dependent in some circumstances may be able to subtract from gross income the interest they pay on these student loans. Tax Deductions FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/i-donated-a-used-couch-to-a-qualified-charity.html You must fill out Section A of IRS Form 8283, Non­cash Charitable Contributions, if your total deduction for all non­cash contributions is more than $500. If you make a contribution of non­cash property worth more than $5,000, generally an appraisal must be done. In that case, you also fill out Section B of Form 8283. Attach Form 8283 to your return. For a contribution of $250 or more, you can claim a deduction only if you obtain written acknowledgement from the qualified organization. Tax Deductions FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/our-house-caught-fire-this-last-july-can-we.html If you lose property through casualty or theft, you may be entitled to a tax deduction. A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual in nature. Some examples of casualties include car accidents, fires, and vandalism. If your property is covered by insurance, you cannot deduct a loss unless you file a timely insurance claim for reimbursement. To claim a casualty or theft loss, you must complete IRS Form 4684, Casualties and Thefts, and attach it to your return. A non­business casualty or theft loss may be claimed only if you itemize deductions on Form 1040, Schedule A. Tax Deductions FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/i-went-through-a-divorce-last-year-and-paid-a.html Legal fees for the divorce itself and for property settlement are not deductible, however, legal fees to collect taxable income, such as alimony, are deductible as miscellaneous itemized deductions on Form 1040, Schedule A. Most miscellaneous itemized deductions are subject to the 2% limit. This means you can deduct the amount left after you subtract 2% of your adjusted gross income from their total. Tax Deductions FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/i-use-part-of-my-living-room-as-an-office-ca.html In general, if you use a part of your home for both personal and business purposes, no expenses for business use of that part are deductible. Exceptions apply for qualified day­care providers and for the storage of inventory or product samples used in the business. This is an area of deductions that the IRS takes special interest in. Before you deduct any substantial business use expenses from your home, you may want to seek the advice of a tax professional or an attorney. Tax Deductions FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/what-are-the-standard-mileage-rates-for-1998-.html For 1998, the standard mileage rate is 32.5 cents a mile for all business miles. The higher rate for U.S. Postal Service employees with rural routes has been repealed. The rate for moving or medical reasons is 10 cents a mile. The rate for travel for charitable volunteer work is 14 cents a mile. For 1999, the rate remains at 32.5 cents a mile until 4/1/99, when it dropped to 31 cents per mile (Rev. Proc. 98­63). The other rates remain unchanged from 1998 to 1999. For 2000, the standard mileage rate is increased back to 32.5 cents per mile (up from 31 cents) per Revenue Procedure 99­38. The other rates again remain unchanged from 1999 to 2000. Tax Deductions FAQs Mon, 04 Jun 2007 21:51:22 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/are-there-limits-on-the-amount-deductible-for.html Meal expenses are deductible only if your trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Generally, the deduction for un­reimbursed business meals is limited to 50% of the cost. Instead of keeping records of your meal expenses and deducting the actual cost, you can generally deduct a standard meal allowance ranging from $30 to $46 in 1999 depending on where and when you travel. Tax Deductions FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/are-business-gifts-deductible-.html If you give business gifts in the course of your trade or business, you can deduct the cost subject to special limits and rules. In general, you can deduct no more than $25 for business gifts you give directly or indirectly to any one person during your tax year. Exceptions may apply. Tax Deductions FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/our-home-was-seriously-damaged-by-a-tornado-l.html Casualty losses are generally deductible only in the year the casualty occurred. However, if you have a deductible loss from a disaster in an area that is officially designated by the President of the United States as eligible for federal disaster assistance, you can choose to deduct that loss on your return for the year immediately preceding the loss year. In other words, you may treat the loss as having occurred in either the current year or the previous year; whichever provides the best tax results for you. Tax Deductions FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/i-am-in-a-disaster-area-and-heard-the-irs-cou.html If you have been impacted by a Presidentially declared disaster the IRS can help you by delaying the filing of returns and payment of taxes you owe and by waiving penalties and interest in some circumstances if the disaster has caused you to file or pay late. We can provide copies or transcripts of previously filed tax returns free of charge, and you may be able to get some money back from the IRS right now. Tax Deductions FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/where-can-i-find-the-per-diem-rates-for-forei.html The federal per diem rates for foreign locations are also published monthly in the Maximum Travel Per Diem Allowances for Foreign Areas. Your employer may have these rates available, or you can purchase the publication from the: Superintendent of Documents U.S. Government Printing Office P.O. Box 371954 Pittsburgh, PA 15250­7954 You can also order it by calling the Government Printing Office at (202) 512­1800 (not a toll­free number). Tax Deductions FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/i-just-bought-a-home-what-can-i-deduct-from.html If you bought your home, you probably paid settlement or closing costs in addition to the contract price. These costs are divided between you and the seller according to the sales contract, local custom, or understanding of the parties. If you built your home, you probably paid these costs when you bought the land or settled on your mortgage. The only settlement or closing costs you can deduct are home mortgage interest, certain points and certain real estate taxes. You deduct them in the year you buy your home if you itemize your deductions. You can add certain other settlement or closing costs to the basis of your home. There are some settlement or closing costs that you cannot deduct or add to the basis. Real estate taxes are usually divided so that you and the seller each pay taxes for the part of the property tax year that each owned the home. You can include in your basis the settlement fees and closing costs that are for buying your home. You cannot include in your basis the fees and costs that are for getting a mortgage loan. A fee is for buying the home if you would have had to pay it even if you paid cash for the home. Tax Deductions FAQs Tue, 29 May 2007 21:19:00 GMT http://resources.lawinfo.com/en/Legal-FAQs/Deductions/Federal/my-spouse-and-i-are-filing-separate-returns.html If you and your spouse file separate returns and one of you itemizes deductions, the other spouse will not qualify for the standard deduction and should also itemize deductions. You may be able to claim itemized deductions on a separate return for certain expenses that you paid separately or jointly with your spouse. Deductible expenses that are paid out of separate funds, such as medical expenses, are deductible by the spouse who pays them. If these expenses are paid from community funds, the deduction may depend on whether or not you live in a community property state. In a community property state, the deduction is divided equally between you and your spouse. 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