Deductions from AGI

Question 1

Common Deductions

Answer 1

Bus expense; capital losses from sale of property; deductions for rents and royalties; contributions to pensions, retirement, health and savings, medical accounts; alimony; moving expense; high ed and interest on higher ed

Question 2

Bus deductions

Answer 2

all ordinary and necessary expenses

and bad bus debts, depreciation, property tax, depletion of natural resources

Question 3

Bus deductions of employees

Answer 3

reimbursed expense incurred on behalf of employer- reimbursements are included in GI but then deducted

Question 4

Capital losses

Answer 4

up to 3K in net losses from the sale or exchange

Question 5

Rents and royalties

Answer 5

Rental income- includable

TP entitled to deductions for expenses incurred in relation to property

Question 6

Vaca homes

Answer 6

Deduct all mortgages interest, taxes, and casualty losses for a vaca home

If house is used for more than 14 days or 10% of the days is rented out (whichever is greater)– bus deductions and limited to amount generated by the property less mortgage and tax deductions

Question 7

Moving expense

Answer 7

Deducted if made in the commencement of work as an employee if: new work and old home are greater than 50 miles apart than the old home and old business AND TP remains a full time employee in the new location
;

Question 8

Ed. Expenses

Answer 8

Deduct up to $2500 for interest paid