by The MDTAXES Network | Nov 17, 2015 | 2015 Year End Newsletter, Deductions
According to the IRS, to be deductible, an expenditure must be both “ordinary” and “necessary” in connection with your profession.? The IRS defines “ordinary” as common and accepted in a particular profession and “necessary” as helpful and appropriate for a particular profession.
Here?s a list of 16 professional expenditures commonly incurred by young health care professionals:
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Automobile expenses
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Beepers and pagers
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Books/library
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Cellular telephones?
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Computer purchases
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Education, examinations & licenses
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Equipment & instruments
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Job search
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Malpractice insurance
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Meals & entertainment
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Parking & tolls
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Professional dues, journals & subscriptions
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Psychoanalysis as part of training
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Supplies
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?Travel & lodging
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Uniforms & cleaning
?Please note:? Employees may not deduct professional expenses that are eligible for reimbursement from their employer.
by The MDTAXES Network | Dec 18, 2013 | Deductions
According to the IRS, to be deductible, an expenditure must be both “ordinary” and “necessary” in connection with your profession.? The IRS defines “ordinary” as common and accepted in a particular profession and “necessary” as helpful and appropriate for a particular profession.
Here?s a list of 16 professional expenditures commonly incurred by young health care professionals:
-
Automobile expenses
-
Beepers and pagers
-
Books/library
-
Cellular telephones?
-
Computer purchases
-
Education, examinations & licenses
-
Equipment & instruments
-
Job search
-
Malpractice insurance
-
Meals & entertainment
-
Parking & tolls
-
Professional dues, journals & subscriptions
-
Psychoanalysis as part of training
-
Supplies
-
?Travel & lodging
-
Uniforms & cleaning
?Please note:? Employees may not deduct professional expenses that are eligible for reimbursement from their employer.
by The MDTAXES Network | Dec 12, 2013 | Planning
It’s not too late to cut your 2013 tax bill.? Prior to Dec. 31st:
- ?Increase your 401(k) and 403(b) contributions if you haven’t been contributing at the maximum rate all year.? This year you can put away up to $17,500 ($23,000 if 50 or older) into your 401(k) or 403(b) plan.? If you?re self-employed, consider setting up a Solo 401(k) by 12/31.
- Take a look at your withholdings and instruct your employer to withhold additional taxes if you haven?t had enough taxes withheld during the year and might get hit with an underpayment penalty.
- Consider selling your non-retirement investments that have decreased in value since your capital losses can offset other capital gains realized during the year (including from your mutual funds), and then can be used to offset up to $3,000 of wages and other income.
- Send in your January 2014 mortgage payment early enough so it will be processed prior to 12/31/13.? By sending in your payment a few weeks early, you can deduct the interest portion of that payment a full year earlier.
- Clean out your closets and donate your clothing and household items to a charitable organization since “non-cash” contributions are deductible if you itemize.? Don?t forget to get a receipt. And make sure to make a list of the donated items, including each item?s condition since only donations of clothing and household items in “good condition or better” qualify for a deduction.
- For gifts of money, making your donation by credit card before December 31st allows you to deduct the donation on this year’s return, even if you don’t pay your credit card bill until 2014.? And you always have the option of donating appreciated investments to charities. You get to claim your donation based on the value of the assets donated, without paying any capital gains taxes on the appreciation.
- Pre-pay your projected state tax shortfall if you’ll be itemizing your deductions and won?t be subject to the alternative minimum tax.
- Pre-pay or pay off your medical bills if your total medical expenses exceed 7.5% of your income and you itemize.
by The MDTAXES Network | Mar 19, 2013 | Uncategorized
From Peter Blank, The Kiplinger Washington Editors?in the original article on http://money.msn.com/taxes/14-extraordinary-tax-deductions-1
Here are?two feline examples of?the types of extraordinary deductions that?have been?allowed by the IRS:
Cat food, part one
A couple who owned a junkyard were allowed to write off the cost of cat food they set out to attract wild cats. They argued that the feral felines did more than just eat; they also took care of snakes and rats on the property, making the place safer for customers. When the case reached the Tax Court, IRS lawyers conceded that the cost was deductible.
?Cat food, part two
A woman used her own money to care for feral cats that she fostered in her home for a charity that specialized in the neutering of wild cats. She spent more than $12,000 of her own money paying for veterinary bills, food and other items.
The Tax Court ruled that she could claim a charitable deduction for her expenses but limited her write-off because she didn’t meet the substantiation rules. She failed to procure a contemporaneous written acknowledgment from the charity each time she spent $250 or more at the charity’s behest. With the proper documentation, though, she could have deducted all costs she incurred for the organizatio
