tax deductible items

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					Hidden Tax Deductible Items
Tax deductible items are overlooked on most occasions even if you have someone like me who has been preparing income tax returns for 18 years
prepare your taxes. If you are doing them yourself then you definitely need this information.


1. Miles driven for medical related incidences are deductible as an itemized deduction. The rate is $.20 for 2007 and $.19 for 2008. Miles are totaled
for doctor visits and hospital visits. Start adding them up and you will be amazed. Think about it on a weekly or monthly basis and then multiply by 52
or 12 respectively.


2. Interest paid on a 2nd mortgage is deductible as long as the residence has a function kitchen and bathroom. Have you ever considered your motor
home in this hidden tax deductible item?


3. Charitable donations are often overlooked since we do this out of the kindness of our hearts. But when it comes tax time sit down and figure these
up. Include donations to Deseret Industries and vehicles donated to different foundations.


4. Expenses incurred during a move that is job related are a tax deductible item. Ask your tax preparer about this one as there are certain tests to be
satisfied. If you qualify include expenses for transportation and storage of household goods. Also travel including lodging from your old home to your
new home is deductible.


5. Deducting alimony can provide an annual tax reduction of $3,360 per year assuming $1,000 paid per month and you are in a 28% tax bracket. Do
not pass this one up as the alimony is also taxable to your ex.


6. Interest for loans to pay education expense are a deduction. With graduation comes so many changes and mail gets lost and misplaced or just
does not get forwarded. Take advantage of this deduction by being sure you know how much interest was actually paid for the year.


7. Taxes withheld from your paycheck that have been sent on to your state on your behalf by your employer are deductible. Also if you owed your
state for taxes from the year before that you paid during the current tax year do not forget this tax deductible item.


8. You can create a capital loss on your individual tax return by deducting worthless debts. These are loans you have made to family and friends that
have not been repaid. Capital losses go nicely against capital gains


9. Losses from business endeavors will be covered in other articles but for the present let me just say do not be timid to take losses on line 12 of your
1040 which arise from self employment. If your venture was intended to turn a profit then you should be taking the deduction.


10. Often clients will rent a home to a family member and will not want to report the rental income. This is a big mistake because it is illegal but you
also miss out on legitimate tax deductions that when properly totaled create a loss on your 1040 that goes against income from other sources.


About the Author
You can visit Zach Allred's web site for more articles about tax deductible items and tax structuring in addition to several home based business ideas.


Source: http://www.article-idea.com

				
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posted:10/17/2008
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