Deductions

Is it income?

The IRS says “all worldwide income” is taxable.  What does it mean?  It means if you find a $10 bill on the sidewalk, the IRS wants you to include it on your taxes.  Good ole Line 21 of Form 1040.  What else goes there? Barter income (so if you do work for someone and they […]

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Donating your griddle?

Good news. If you itemize your deductions on your tax return (and you want to do this if the total of your itemized deductions exceed your standard deduction) you can claim a deduction for the fair market value of the goods that you donate to a qualified charitable organizations. Get proof of the donation.  A door […]

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College costs getting you down?

Well perk up!!!! Your kids will be smart and more well-rounded AND the IRS is giving you the added bonus of many possible tax incentives.  Woohoo!!! Fantastic! What are these special incentives…well, here’s a few to wrap your mind around…. The American Opportunity Credit….an education credit of up to $2,500 for qualified higher education costs.  […]

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Tax-free discharge of mortgage debt

Did a bank discharge debt you owed for your principle residence?   Section 151 of the recently passed PATH Act has extended the ability of people to exclude gross income from the exclusion of this debt if certain conditions apply.  It’s been extended to include income that is reported as discharge of debt in either 2016 […]

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Have an extra $100,000? Giving from IRAs

In a giving sort of mood?  Have an IRA account that’s just sitting around collecting dust?    Don’t wanna cash it out and pay tax on the distribution just to turn around and give it to charity at the lesser, “after-tax” amount?   At least 70 1/2 years of age? Well great news!!!!   Section 112 of the […]

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Vets fee deductible? Ummm….no…sorry

Well, a few days ago I gave you a list of common, and sometimes, not so common, Qualified Medical Expenses that you may be able to deduct on Schedule A of your Form 1040. Thought you might like a list of some NONDEDUCTIBLE items. Enjoy!  Or, I guess, sorry Child care for a healthy baby/child […]

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Break a leg, fix a tooth! It’s deductible!! Well-maybe…..

So, you have probably heard that you need quite a bit of medical expenses to have a deduction.  Well…that’s true. But they do add up so keep track. You can deduct medical, dental and optical expenses that are considered Qualified Expenses if you are ITEMIZING your deductions rather than taking the standard deduction AND IF […]

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Gas prices are down!

Well, we humans aren’t the only ones that has noticed that gas prices have gone down. According to WKYC.com, average Ohio gas prices have fluctuated quite a bit over the last 72 months, ranging from $4.15 to $1.82 per gallon, with this being a very good time for buying gas.  The IRS has noticed too of course. […]

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Tax Extenders – Saving You Tax $

As is par for the course, Congress waited until the last minute to approve the tax extenders for 2015 with the “Protecting Americans from Tax Hikes Act of 2015.”  President Obama signed it into law. This law extends various tax breaks for individuals and businesses.  Below is a list of some of these extensions:   The […]

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