Tax Deductions | AccountingWEB

Tax Deductions


Highlights of COLAs for '13

The IRS has announced various cost-of-living adjustments for 2013. Although inflation has remained on the low side this year, it was still high enough to move the needle on more than two dozen tax code provisions.

45 States Have More Time to Replace Livestock

Farmers and ranchers who previously were forced to sell livestock due to drought, have an extended period of time in which to replace the livestock and defer tax on any gains from the forced sales, the IRS announced.

Court Shuts Down Orange County Tax Preparer

Ernesto Jesus Suarez of Orange, California, has been permanently barred from preparing tax returns for others.

Give Your Regards to the 'Cohan Rule'

The iconic showman George Cohan's most enduring legacy may be traced back to a landmark US Tax Court decision permitting him to deduct business expenses, even though he didn't have all the receipts needed to back up his claims.

IRS Notice 2012-22 Adjusts Energy Savings Percentage Guidelines

The Energy Policy Act of 2005 includes a tax deduction for investments in "energy efficient commercial building property" designed to significantly reduce the heating, cooling, water heating, and interior lighting cost of new or existing commercial buildings placed into service between 1/1/2006 and 12/31/2013.

Tax Tip: Expand the Reach of Dependent Care Credit

This is the tenth and final article in our series of tax return tips for 2011 returns. It's not unusual for both parents of young children to work during the day while someone watches the kids. But the parents may be able to claim a dependent care credit to offset part of the cost.

Tax Tip: How Do You Spell Tax Relief? C-a-s-u-a-l-t-y Loss

This is the ninth article in our series of tax return tips for 2011 returns. Last year was a violent year across the country due of a flurry of natural disasters. If insurance proceeds didn't make your clients whole, they may be entitled to limited tax relief on their 2011 returns.

Tax Tip: Add on Medical Expenses for a Nondependent

This is the eighth article in our series of tax return tips for 2011 returns. It's often difficult for taxpayers to qualify for medical expense deductions - but not impossible. Although the annual threshold is daunting, clients often overlook or ignore deductible expenses that can help pad their total.

New Online Tool for Donors Offers Peace of Mind

The IRS has announced that is making it easier for taxpayers and tax return preparers to do their due diligence on tax-exempt organizations. It has launched a new online tool, Exempt Organizations Select Check (EO Select Check), that provides all the important information in one location (IR-2012-34).
Education & Careers

Tax Tip: Spell Out Tax Rules for Business Education

This is the seventh article in our tax return tips for 2011 returns. Did any of your clients go "back to school" in 2011? They may be entitled to a tax deduction for their unreimbursed education costs as employee business expenses. But the tax rules aren't exactly back and white - there's plenty of "gray area."

Tax Tip: A Party at Home? That's (Deductible) Entertainment!

This is the sixth article in our series of tax return tips for 2011 returns. The days of the three-martini lunch are long gone, but savvy taxpayers can still savor plenty of tax treats for entertaining their top customers. In fact, some clients may be entitled to write-offs for hosting get-togethers at their own homes.

Tax Tip: Dish Out Tax Rewards to Charitable Volunteers

Do you have clients who work hard for nonprofit organizations? Although taxpayers can't deduct the value of their "blood, sweat, and tears," they can still write off certain expenses that aren't reimbursed as charitable contributions.

Tax Tip: Generate Energy Credits for Clients

Are you clients "going green?" Besides doing their small part to save the planet, taxpayers can claim a residential energy credit for installing qualified energy-saving devices in the home. The main energy credit technically expired on January 1, 2012, but can still be claimed on a 2011 return.

Demi Moore and Whitney Houston: Do Drugs and Tax Deductions Mix?

In the wake of her breakup with husband Ashton Kutcher last year, actress Demi Moore spiraled out of control, leading to extreme weight loss, convulsions, and other medical issues. Moore's camp isn't providing any details about her physical and mental condition, but we can assume she's receiving the care she needs.

IRS Announces 2012 Standard Mileage Rates

The Internal Revenue Service (IRS) has announced the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.


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