Personal Deductions

Question 1

Deductions

Answer 1

Personal Exemptions, Casualty Losses, Alimony Paid, Medical Expenses, Charitable Contributions, Interest, Ordinary and Necessary Expenses of Business or Investments, Tax Preparation, Home Office, Vacation Homes, Child Care, Travel, Entertainment, Work Cloths, Education, Business and Investment

Question 2

Personal Exception

Answer 2

Get one for you, your spouse and any qualifying child,

qualifying child: lives with taxpayer, is under 18 or 24(if full time student) doesn’t provide ore than 1/2 of his own support.

Question 3

Casualty Loss

Answer 3

Fire, storm, shipwreck.

10% floor of Adjusted Gross Income and $100 per event.

Question 4

Medical Expenses

Answer 4

Uninsured medical bills and medical insurance premiums. 7.5% floor

Question 5

Charitable Contributions

Answer 5

Most can deduct either 30% or 50% of AGI depending on type of charity.

Property = FMV
Dealer in Property: Only Taxpayer’s Basis
Used autos, planes, boats deduction capped at amount charity sells vehicle for.

NEED WRITTEN PROOF.

Question 6

Interest

Answer 6

Loan for business, Loan for Investments, Student Interest: Up to 2,500 a year per return, Once AGI exceed certain threshold deduction is phased out.

Question 7

Home Loan Interest

Answer 7

Acquisition Indebtedness: money to buy or improve house (interest on 1 million of debt)

Home Equity Indebtedness: Money borrowed with house as collateral (Limited 100,00)

ALSO COVERS VACATION HOUSE