The IRS Deductions Blog

Posts Tagged ‘expenses’

Question: I can see the porn, but the prostitutes…?

Tax Court Rules Prostitutes Aren’t Deductible
Lawyer kept records, claimed visits as medical expense

http://www.forbes.com/2009/09/15/tax-court-deductions-prostitutes-medical-expenses-personal-finance-hookers.html

“The U.S. Tax Court ruled Monday that Brooklyn, N.Y. tax lawyer William G. Halby, 78, had no legal basis to deduct prostitutes and pornography as medical expenses on his federal tax returns. Judge Joseph Robert Goeke upheld the Internal Revenue Service’s determination that Halby owed $21,000 in back taxes plus $4,000 in accuracy-related penalties for his disallowed write-off of $120,000 of what the court delicately (and in quotations) called “service providers” as well as pornographic materials.”

Answer: I beg to differ.. massage therapy and physical therapies arent taxable.. why should screwing? You men! HA!

Items on Amazon Right Now for 2009 Deductible Medical Expenses:

China Medical Technologies Reports Third Fiscal Quarter Financial Results

China Medical Technologies, Inc. , a leading China-based advanced in-vitro diagnostic company, today announced its unaudited financial results for the third fiscal quarter ended December 31, 2009 .

Andrew Rubin on Fox Business (August 20, 2009)

Question: What sorts of medical expenses are tax deductible? Are therapy, prescriptions and dental deductible?

I recently changed jobs and it is a smaller company. I am paying more and more medical expenses out of pocket and I need to know how I can claim them as deductions.

Answer: Yes all of those are deductible. Just about anything medical except cosmetic surgery and over the counter drugs are deductible.

The whole list of them is talked about in Publication 502 Medical and Dental Expenses – http://www.irs.gov/pub/irs-pdf/p502.pdf

Of course you have to itemize all of your deductions to take advantage of them – not just medical – and hope that they are more than your standard deduction which is based on your filing status. And unfortunately only those medical expenses over 7.5% of your gross income counts.

Items on Amazon Right Now for Deductible Expenses:

The Time is Now to Help

February 10, 2010 | 09:00 AM Dear W.C. I am writing to request help for my daughter. She has been fighting cancer for the past year and is having a very hard time financially. She took a leave of absence from her job but has found herself physically only able to return part-time.

Gays of Our Lives: Wanted, Eskimo Whores!

Question: Can I deduct the cost of vitamins, nutrition supplements, and alternative therapies from my Income Tax if…?

…I am a professional speaker on the topic? I advocate the use of these lifestyles, therapies, and products for health, wellness, and slowing the aging process. I definitely practice what I preach. I use/do everything I recommend in my speeches. I am in my mid-50s and look (and act) much younger.

I know that I am a walking promotion for my speaking business and that my appearance and behavior validates my expertise/opinions in the audience’s eyes. Therefore, I have to believe that my personal use of vitamins, supplements, and other alternative therapies should fall under the category of a business expense and be tax deductible. I am told by colleagues that this is “probably” true, but no one can give me any hard data to back up that claim.

If you agree (or disagree), can you give me the references I would need and could use if the Tax Deductions are ever challenged by the IRS.

Thank you for you help.

Answer: The products you “take” yourself are not deductible, since they are personal in nature. The rationale is the same for your suits and personal appearance. You need to have nice clothes and have your hair cut etc for your speaking engagements, but they aren’t deductible either. You could wear that suit for something other than a speaking engagement. The supplements help you in other areas of your life, not just your professional one. However, you can deduct any supplements you use as samples or displays, that are not available for sale. If you have pills that are available for sale (inventory) they are deducted when sold.

Items on Amazon Right Now for Deductible Business Expenses Irs:

New Year, New Start

If you’re taking the time to read this column this early in the year, then congratulations on your wisdom in wanting to be prepared.

Taxes can be overwhelming which is why there is such a large market for tax preparation services. There are many different types of tax preparers and each title has certain requirements that must be maintained in order to establish its position. Below is a brief introduction to the different types of tax preparers available as well as some general tips on what to look for when choosing the right one to prepare your taxes.

General Tax Preparer

There are several different routes that are taken to become a general tax preparer. For larger companies like H&R Block or Jackson Hewitt, they will provide their employees with training on how to serve customers with their tax needs and how to spot common tax return errors and omissions.

Enrolled Agent

Enrolled agents are required by the IRS to have 72 hours of professional education every three years to retain their designation after passing a standardized test.

Certified Public Accountant (CPA)

To become a CPA requires about five years of school and a very rigorous test. There are many different options when it comes to filing your taxes every year and with better software and training coming out, the process has become a much smaller headache.

How to Choose

When there are this many options to have your taxes done, the hiring process of a preparer becomes a contest of who is the most qualified. People will trust brands that they see on TV or advertisements, or perhaps they will seek out an accounting educated individual for advice or expertise.

By obtaining more knowledge on taxes and the different requirements that each preparer must go through in order to obtain their designation, you will have a better foundation on which to make your tax preparation decision when it comes time to hire a tax preparer.

Proper Credentials and Liability Coverage

Although a tax preparer’s certifications and awards are one metric to base your decision on, one of the most important factors is whether or not they are covered with liability insurance.

If you’re thinking about outsourcing your tax preparation this year, make sure that the preparer is covered with reliable insurance. This is a good indication that they take their job seriously and that if there are any errors or omissions with your tax documents, that there will be insurance coverage to resolve your dispute.

Items on Amazon Right Now for Tax Deductible Training:

In & Around Town

SATURDAY, Oct. 4 The second ‘Shop ‘n’ Rock’ will be hosted from 1 to 6 p.m. at the Budd Lake Firehouse, Route 46. The event is sponsored by the Mount Olive Kiwanis and Mount Olive Fraternal Order of Police Lodge 122. The family event will include food, activities, music, a kid’s play zone and vendors. Vendors and sponsors are sought and should visit www.mtolivekiwanis.org[[[SHIFTIN …

Team in Training: Early Morning Swim-Bike-Run Part 5

If you plan to buy a home or condo, you must have Home owner insurance. Not only does it protect your home investment, it is also a requirement when you buy a house and lot through mortgage.

Home insurance is a protection given to your house in case it is damaged or needs repair.

One effective way in buying a condo insurance, another term for home insurance is to inquire first at your existing insurance, whether it is life insurance or car insurance.

Some insurance companies have different types of insurance policies. Moreover, many insurance companies grant discounts if you buy several insurance policies with them.

There are many types of coverage to choose in buying home owner insurance. HO-1 is the basic type to protect your property from 11 threats which include fire, vandalism, lightning, theft, major breakage and overflow of water from plumbing. The HO-5 policy covers everything except flood, war and earthquakes.

If you need to insure your house from natural disasters, you need to buy a separate condo insurance. Another consideration before buying your home insurance policies is to make an estimate on how much it would cost for you to rebuild your house in case it is damaged or destroyed.

The insurance company has its own guidelines to estimate the replacement expenses together with the corresponding premiums. Of course, the higher the replacement expenses, the higher the premium.

The premiums for your home owner insurance also differ depending on where you live, the value of your house, your length of stay in your house, and the number of insurance claims in your neighborhood. So better to shop around and compare home insurance providers.

If you want to save on your condo insurance, look for ways that can help get lower premium. For example, you can install effective security system, fire protection system and maintaining a 100 feet around your home.

If your neighborhood is prone to flood, your basement and its furnishing are not covered unless you have a separate flood insurance. In other words, know your major risks and do something about it to make it disaster-resistant.

Depending on your insurance company, there are policies that cover the contents of your house. Know which items are part of the home owners insurance. These can be any valuable items such as jewelry, expensive equipment, computers, artworks and more.

There are also riders that you can add on to cover your living expenses when you have to stay somewhere while your house is on reconstruction. Another coverage that you should check is your liability in case a guest is injured by slipping off your stairs. There is a type of condo insurance that covers liability expenses while you are away.

Increase your deductible. It can save you up to 25% over a 5-year or 7-year period. When you pay the lower deductible on your home owner insurance, you are only wasting your money particularly when you have never filed a claim [because you never meet the deductible].

Finally, you have to maintain a good credit rating. When the insurance company knows that you have good credit standing [by paying your bills on time], you may get good premium rates for your home owner insurance.

Items on Amazon Right Now for List Deductible Business Expenses:

J.K. Lasser’s 1001 Deductions and Tax Breaks 2012: Your Complete Guide to Everything Deductible $12.39 A straightforward guide to taking tax breaks and deductions on your 2011 tax returnCompletely revised to reflect important changes in this year?s tax laws, J.K. Lasser?s 1001 Deductions & Tax Breaks 2012 will help you take advantage of every tax break and deduction that you may be entitled to. This comprehensive guide is clearly organized by subject matter so you can easily find situations that ma…

422 Tax Deductions for Businesses and Self-Employed Individuals (422 Tax Deductions for Businesses & Self-Employed Individuals) $7.99 Fully revised and updated, this guide is aimed at all businesses, independent professionals and contractors, freelancers, and home and Internet businesses. The hundreds of tax breaks listed are not loopholes or questionable areas of the law, but legitimate business deductions that accountants forget to ask their clients about or that the IRS chooses not to mention on its tax forms….

Financial 411: New Year’s Resolutions

Financial changes that are easy, and will put you in better financial shape

President Obama Holds a Health Care Town Hall in Colorado