Interest Expense
While most personal interest is no longer deductible (credit card interest, car loans, and the like), there are still interest expense deductions available to you.
- home mortgage interest
- 2nd home mortgage interest
- home equity loan interest
- interest on special assessments (as real estate tax)
- business interest
- investment interest
- “points” paid
Charitable Contributions (donating money or property)
Both cash and property are generally deductible if donated to qualified organizations. Qualified organizations include:
- churches
- non-profit schools
- non-profit hospitals
- public parks
- boy & girl scouts
- war/veterans groups
- agencies such as: Red Cross, Salvation Army, Goodwill, CARE,
United Way etc.
- YMCA/YWCA
- some environmental/conservation groups
Tax$aver Tip: Make sure you also keep track of your mileage to and from the charity. It is also deductible.
Caution: The rules for deducting donations of vehicles to charities have changed. If the charity sells your vehicle without using or improving the vehicle, your deduction is limited to the gross proceeds from the sale not what could be a higher fair market value.
Casualty & Theft Losses
Casualty and Theft losses are generally deductible to the extent they exceed 10% of your adjusted gross income, are not reimbursable via insurance, and each event exceeds $100.
- fire
- theft
- natural loss: tornado, hurricane, flood, etc.
- car accident
- vandalism
- other accidents
Miscellaneous Deductions
Most miscellaneous deductions are only deductible to the extent they exceed 2% of your adjusted gross income. Items with an “*” are usually not subject to the income threshold.
- gambling losses to offset gains*
- handicapped job related expenses*
- work uniforms
- un-recovered annuity costs*
- job hunting expenses
- safe deposit box cost
- tax prep fees
- employee business expenses
- hobby exp. to offset gains
- 50% of business related meals; entertainment
- classroom material expense for teachers
- repayments of income*
- repayments of Social Security
- investment related expenses
- in-home office expenses
- IRA/KEOGH administration fees
- business use depreciation
- certain legal fees
- trust administration fees
- job required medical exam
- job required education expenses
