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Bottom Line/HEALTH
Bottom Line/Health from Bottom Line Publications helps busy people achieve and maintain optimum health. It provides the latest findings from the world’s leading medical experts and gives up-to-date advice on nutrition, fitness, and illness prevention and cure. See for yourself... free. |
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Bottom Line/NATURAL HEALING with Dr. Mark Stengler
Bottom Line Natural Healing with Dr. Mark Stengler, from Bottom Line Publications, is dedicated to empowering readers with the deepest understanding of natural and alternative therapies, and the knowledge to use them to stay well and heal disease, free from the influences of advertising. See for yourself... free. |
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Bottom Line/Personal
Bottom Line/Personal from Bottom Line Publications gives you the best information from the greatest experts in the world. To help you gain greater wealth, better health, more wisdom, extra time and increased happiness. The information is in an easy-to-read format, free from outside advertising. See for yourself... free. |
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Bottom Line/RETIREMENT
Bottom Line/Retirement from Bottom Line Publications enhances the lifestyles of those who are retired and those considering retirement. It brings the best information from the most knowledgeable sources, quickly, accurately and efficiently, free from the influences of advertising. See for yourself... free. |
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Tax Hotline
nside report for people who need to be on the top of every tax break the law allows. See for yourself... free. |
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Last-Minute Frequently Overlooked Tax Deductions
Vincent D. Vaccaro
PricewaterhouseCoopers LLP
se this checklist to find savings before filing your 2007 returns.
These deductions have been allowed by the IRS and upheld in court.
Medical Deductions
Medical expenses are deductible to the extent that they exceed 7.5% of your adjusted gross income (AGI). Included...
 Acupuncture.
Alcoholism and drug/nicotine addiction treatment programs.
Capital
expenditures for home improvements required to accommodate a disability. Examples: Elevators, ramps, modifications to cabinets.
Chiropractic care.
Closed-caption television decoder.
Contact lenses.
Cosmetic
surgery necessary to ameliorate a deformity from a congenital
abnormality, personal injury or disfiguring disease -- not elective
cosmetic surgery.
Dental fees and dentures -- not for cosmetic procedures, such as tooth-whitening.
Eye examinations.
Eyeglasses.
Health
insurance premiums paid with after-tax dollars, including the cost of
Medicare Part B and Part D coverage. Self-employed individuals may
deduct up to 100% of their insurance premiums even if they do not
itemize their deductions.
Insulin and prescription drugs.
Lodging
(but not meals) not provided in a hospital while away from home primarily for, and essential to,
medical care. Limited to $50 each per night for the patient and a
companion.
Nursing home care required because of a medical condition.
Premiums paid for long-term-care insurance subject to limitations depending on the age of the taxpayer.
Prescription contraceptives, legal abortions and vasectomies.
Psychiatric treatment.
Seeing aids for the blind, including expenses for Braille publications and Seeing Eye dogs.
Telephone equipment for the deaf.
Transportation to and from hospitals or doctors' offices. The automobile rate is 20 cents/mile plus parking fees and tolls.
Weight-loss programs for the obese.
Wheelchairs or other special chairs for a disabled person.
Taxes
Taxes other than federal income, FICA, estate or gift tax generally are deductible. Included...
Co-op owners can deduct their proportionate share of the building's taxes.
Foreign taxes, unless a credit is claimed.
Personal property taxes.
Real
property taxes paid during the year. (This may be different from the
amount in your escrow account. Your lender will advise you as to the
amount to deduct.)
State
and local income taxes paid or applied during the year, including wage
withholding. Alternatively, an individual can deduct state and local
general sales and use tax in lieu of state and local income taxes.
Interest
The IRS divides interest into several categories. Personal interest
(auto loans, credit card debt, etc.) is not deductible. However,
interest on qualified higher-education loans is deductible, subject to
AGI and other limitations. The maximum deduction is $2,500. This is a
deduction used in calculating your AGI and is not an itemized deduction.
Mortgage and investment interest expenses typically are deductible, subject to these limits...
Co-op owners may deduct their share of mortgage interest paid by the association.
Interest
expense paid on loans held specifically to purchase taxable investments
is deductible to the extent of net investment income. Excess interest
expense is carried forward indefinitely.
Interest paid for a loan on a boat that has living, sleeping and eating quarters.
Mortgage
interest expense incurred upon purchase of a home for up to $1 million.
The $1 million threshold can only be reached using existing mortgages
on your primary residence and one other personal residence. This
includes debt incurred within 90 days of the purchase or major
improvement that is secured by the principal residence and/or one
additional residence.
Mortgage
interest expense incurred on home-equity loans of up to $100,000.
Generally, the proceeds can be used at the taxpayer's discretion
without risking the interest being classified as nondeductible. One
exception is if the loan is taken out to purchase tax-exempt/municipal
bonds, which would then classify all home-equity loan interest as
nondeductible.
Points paid on your principal residence generally are deductible immediately, unless you choose otherwise.
Points paid on a refinance generally are amortized over the life of the loan.
Mortgage insurance on a home purchased in 2007 (income limits apply).
Casualty and Theft Losses
Casualty and theft losses are deductible if they result from a
sudden, unexpected and unusual cause to the extent that they exceed 10%
of AGI and $100 for each occurrence and cannot be reimbursed by
insurance. Included...
Automobile accident if not caused by your willful act.
Loss of a bank account due to insolvency of the bank.
Fire, flood and storm damage, including hurricanes and tornadoes.
Replacement cost of trees and shrubs damaged by storms or fires.
Charitable Contributions
Contributions to qualified charities are fully deductible up to 50%
of your AGI. (You can carry over the nondeductible excess for up to
five years.) Included...
Automobile expenses for volunteer activities computed at 14 cents per mile plus parking fees and tolls.
Cash
contributions. (Bank statement or acknowlegement is required for all donations with written substantiation of contributions in excess of
$249.)
Fair
market value of clothing and other household items donated to charity.
A qualified appraisal is generally required if the value of donated
items exceeds $500.
Gifts
of capital gains property, such as appreciated stock. The current-year
deduction is limited to 30% of AGI. Any excess can be carried over for
up to five years.
Out-of-pocket expenses incurred while engaged in volunteer activities.
Deductions
for charitable contributions of used motor vehicles, boats and
airplanes now are generally limited to the amount the charity receives
upon the vehicle's sale and not the fair market value on the date of
donation. Upon sale of the property, the charity is required to report
to the taxpayer within 30 days the amount of proceeds realized on the
sale. Charities are required to give a copy of written acknowledgements
of such donations to the IRS.
Appraised value of the donation may be used when the charitable organization uses the donated item in its charitable activity.
Miscellaneous
Miscellaneous itemized deductions generally are deductible to the extent that they exceed 2% of your AGI. Included...
Accountants' fees.
Costs for job-related uniforms.
Fees paid for professional journals.
Investment management and custody fees for taxable investments.
Job-related education expenses.
Job-search expenses in the same line of work, including...
Travel to and from job interviews, including cab fare and/or auto expenses.
Costs for typing, printing and mailing résumés.
Calls to prospective employers.
Legal
expenses incurred for the production of income or the management,
conservation or maintenance of income-producing property.
Legal
expenses incurred in collecting alimony under a divorce decree are
deductible. However, legal expenses incurred in a divorce paid by one
spouse in resisting the other's monetary demands are nondeductible
personal expenses.
Tax-preparation fees.
Union and professional dues.
OTHER
Other deductions that a taxpayer can benefit from are...
Teachers can deduct as an adjustment to gross income up to $250 for unreimbursed
expenses for supplementary equipment used in the classrooms (books, computer equipment and supplies).
Employees
and self-employed individuals may deduct as an adjustment to gross
income the reasonable expenses of moving themselves and their families
if the move is related to starting work in a new location. Deductible
expenses include (1) transportation of household goods and personal
effects and (2) travel (lodging but not meals).
Legal
fees and court costs paid in conjunction with discrimination or
"whistle blowing" cases after October 22, 2004, will be deductible as
adjustments to gross income and not as itemized deductions.
All
properly substantiated gambling losses are fully deductible to the
extent that they are used to offset that year's gambling winnings.
For tuition and fees for higher education up to $4,000 (income limits apply).
Military Deductions
Changes under the Military Family Tax Relief Act include...
Deduction
for travel costs of members of the National Guard and reservists (even
if they don’t itemize). This break applies for unreimbursed
service-related travel costs while 100 miles or more away from home on
overnight stays.
Full
exclusion from income for child-care expenses paid by the military. For
civilian employees, only the first $5,000 is excluded.
Extra
time to file a return for those in "contingency operations" -- for
example, someone called to duty by the President during a national
emergency -- in addition to those serving in a combat zone. The
extension is generally 180 days after the last day in a combat zone or
contingency operation.
Bottom Line Publications publishes the opinions of leading authorities in many fields. But the use of these opinions is no substitute for legal, accounting, investment, medical and other professional services to suit your specific personal needs. Always consult a competent professional for answers to your specific questions.
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