De Minimus Benefits Any property or service with a relatively low value is excluded from tax on employees – including owners and partners. This includes occasional meals or supper money, local transportation when working late, holiday or birthday gifts, occasional sporting event tickets and traditional awards.
Contributions – Art Appreciation Appreciate Your Art Appreciation If you donate art purchased years ago that has appreciated significantly, get the highest deduction available. Here’s what we mean: There are a number of requirements to write off the full market value of the art you contribute to charity. Let’s say you bought a painting for […]
Medical Expenses – Travel Conferences Medical Conference Registration Fees Are Deductible As Medical Expense. Meals and Lodging At Conference Are Not. A parent has a child who suffers from a chronic disease. At the recommendation of the child’s physician, the parent attends a conference sponsored by an association that supports research and education concerning the disease. The parent […]
Automobile Commuting Rules Thanks to an IRS ruling, you may be able to claim deductions for daily transportation expenses that were treated as nondeductible personal commuting expenses in prior years. The ruling significantly eases the deduction rules for taxpayers who travel between home and temporary job locations. In addition, it gives new write offs to […]
Escape The Home Office Trap By Electing Sub S Status If you’re self-employed and work from your home, there’s a simple way to sidestep a potential tax trap involved in future home sales. All you have to do is adopt the S corporation form of doing business. When you operate your business as an S […]
Deducting Your Computer Computers are considered “listed property,” or assets used for both business and personal applications. Under the rules, if you use a computer more than 50% for business, you’re allowed to expense that percentage under Section 179 immediately or depreciate it using MACRS depreciation tables. If you use the equipment less than half […]
Write Off Your Swimming Pool You can deduct the cost of an in-ground swimming pool as a medical expense if your doctor prescribes swimming to alleviate a family member’s medical ailment. (Cherry, TC Memo 1983-470). The amount of the deduction is equal to the cost of the pool minus the increase in the home’s value. […]
Psychoanalysis Deductible As A Business Expense – Not As A Medical Expense The IRS acquiesced to a Tax Court decision (Jose P. Iglesias (1981) 76 TC 1060,acq. 1981-47 IRB-5) that allowed a physician who underwent psychoanalysis while a resident in psychiatry to deduct the cost as a business expense; based on the fact that it […]