Deductible taxes –

For. State, local, and foreign income taxes;
B. Real estate taxes;
vs. Personal property taxes; and
D. State and local sales taxes.

In this category you can find various government taxes that are levied on your income, property, real estate, car, and more. To claim this deduction, simply look at your W2 and locate the box that indicates how much your employer withheld from your wages for state and local income taxes. If you submitted estimated tax payment for your state (or any other state), claim these payments as well. Also, look at your 1098 form, which is your annual mortgage summary, and see if there are property taxes listed. If you pay your property tax independently, add up all the bills you paid in 2009 for property tax. If you have a car and paid personal property taxes on it, use that as deductible taxes as well.

Caution: IRS Topic 503 specifically prohibits some tax payments; “The taxes and fees you cannot deduct on Schedule A include federal income taxes, social security taxes, stamp duty or transfer taxes on the sale of property, homeowners association fees, inheritance and inheritance taxes, and charges for water, sewer or garbage collection services. “

Interests and points –

For. Mortgage interest on the principal resident;
B. Points paid for the primary resident’s purchase;
vs. Interest on home equity loans; and
D. Student Loan Interest.

Any homeowner who took out a mortgage can claim the interest paid on that mortgage if certain criteria are met. If your mortgage was taken from a US bank or mortgage company, you will likely receive Form 1098 from the IRS, which reports the amount paid by you as interest in the tax year. Form 1098 also specifies the points paid, and often the real estate tax paid, if it was paid through an escrow account that the bank or mortgage company established for you.

The following situations qualify for the mortgage interest deduction:

1. A mortgage you obtained on or before October 13, 1987 (vested debt)

2. A mortgage obtained after October 13, 1987 to buy, build, or improve your home (called home purchase debt), but only if this debt plus any vested debt amounts to $ 1 million or less during 2008. The limit is $ 500,000 if you are married and file separately.

3. A mortgage obtained after October 13, 1987, other than to buy, build, or improve your home (called home equity debt), but only if these mortgages total $ 100,000 or less during 2008, and all mortgages, including debt and home purchase debt, on your home, do not total more than the fair market value of your home. The limit is $ 50,000 if you are married and file separately.

Caution: IRS Topic 503 excludes some items that are claimed; “You cannot deduct personal interest. Personal interest includes interest paid on a loan to buy a car for personal use. Personal interest also includes interest on credit cards and installment payments incurred for personal expenses. Items you you cannot deduct how interest includes points (if you are a seller), service charges, credit screening fees, and interest related to tax-exempt income, such as interest from buying or carrying tax-exempt securities. “

Charitable contributions –

For. Cash contributions; and
B. Non-monetary contributions.
If you are a donor, this is your opportunity to benefit from your generosity. Contributions you have made to qualified organizations as defined in IRS Publication 526, Charitable contributions They may be deductible if they meet certain criteria.

Non-monetary contributions: In general, you can deduct the fair market value of any property that you have donated. If you received merchandise, goods, or services, including admission to a charity ball, banquet, theater performance, or sporting event in exchange for your contribution, you can only deduct the amount that exceeds the fair market value that you received.

Cash Contributions – If your donation includes cash, check, or other monetary gift (regardless of amount), you can deduct that payment as qualified contributions if made to qualified organizations.

Caution: IRS Topic 506 determines what documentation you must keep to prove your donation; “For any contribution of $ 250 or more (including contributions of cash or property), you must obtain and maintain for your records a contemporaneous written acknowledgment from the grantee organization indicating the amount of cash and a description of any property contributed, and if the donor organization provided goods or services in exchange for the gift. A document from the donor organization may satisfy both the written communication requirement for monetary gifts and the contemporaneous written acknowledgment requirement for all contributions of $ 250 or more. “

Commercial home use –

Commercial Home Use – This one is fun. If you are a “workaholic” and work anywhere at any time, including your home, you’ll be happy to know that the IRS understands you and really wants to help you. Whether you are self-employed or an employee, you may be able to deduct certain expenses from the part of your home that you use for business despite the general denial of home business expense deductions.
Not everything is deductible. The first criteria you must meet is that part of your home should be used regularly and exclusively as one of the following:
1. The main place of commercial activity of your trade or business;
2. The place where he meets and deals with his patients, clients or clients in the normal course of his trade or business; gold
3. In connection with your trade or business, if you use a separate structure that is not attached to your home.
What can you deduce? In general, most expenses paid to lease, maintain, and repair the home are deductible, including:

1. Commercial portion of real estate taxes;
2. Deductible mortgage interest;
3. Rent;
4. Casualty losses;
5. Utilities;
6. Sure;
7. Depreciation;
8. Maintenance and repairs.

Caution: IRS Topic 509 prohibits you from claiming certain expenses; “You cannot deduct expenses for general lawn care or for painting a room that is not used for business.”

How much can you claim? Not 100% of the above expenses can be deductible mainly because only a part is used in the business and the rest is merely personal expense. To calculate the portion of the deductible, you need to divide the number of square feet used for business by the total square feet in your home (if the rooms are approximately the same size, divide the number of rooms used for business by the total number of rooms at home). house) and then multiply this% by the total amount of expenses listed above.

Commercial use of care –

Have you ever been asked to use your car for work? It is time to recover. Now you can save tax money by claiming the business use of your car. How does it work? Simple. You can choose one of two methods:

1. Standard Mileage Rate – The way this method works is to multiply the actual business miles you have driven with your car in the tax year by the standard mileage allowance (for 2009 it is 55 cents per mile).
2. Actual spending method. First, you divide the number of business miles driven in the fiscal year by the total miles driven in the same period (you do this to determine the business portion of the car’s use). Then, multiply that part by the expenses actually paid to operate the car (includes gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments).

Caution: IRS Topic 510 restricts the use of the standard mileage method in some cases; “To use the standard mileage rate, you must own or lease the car; the car must not be used for rental, for example, as a taxi; you must not operate five or more cars at the same time, as in a fleet operation; no must have claimed a deduction for depreciation using the Modified Accelerated Cost Recovery System (MACRS) on the car in a prior year or any method other than straight-line for its estimated useful life; must not have claimed a deduction from the Section 179 or the special automobile depreciation allowance and you must not have claimed actual expenses after 1997 for a car you rented.You cannot use the standard mileage rate if you are a rural mail carrier who received a “qualified rebate.”

conclusion

When preparing your 2009 tax return, be sure to read this article carefully to determine which of the tax deductions mentioned in it may apply to you. Using one or more of the deductions could lead to a much larger refund not only this year, but for years to come.