It's never too soon to look at year-end tax write-offs or to find some
By Dian Vujovich
So what if Congress can’t make up its mind about what to do regarding the expiring Bush tax code? Just because they are dilly-dalliers doesn’t mean there aren’t things you can do to prepare for the up-coming tax season.
Whether you’re in that top 1 percent or not, we all know that the Uncle comes a knocking every year no matter what. And every year there are actions to take before year’s end that may soothe his bite.
Some of the most obvious include gifting the max to family, friends and charities as well as opening a ROTH IRA and funding it with as much as possible,
Others are not as obvious and include expenses you may have encountered this year that are extraordinary. A recent Kiplinger story on that subject pointed out 14 of them that qualified as deductions accepted by the IRS. Below are a few of them. Perhaps one or two could decrease your bill:
• If you’ve had a sex change operation this year, part of the out-of-pocket costs for it could be deductible. According to that Kiplinger piece, a transgender citizen wanted to deduct most of the costs of his operation and the Tax Court found that $14,500 of the $22,000 qualified as a deductible medical deduction.
• Is your live-in working for you? The IRS allowed a business expense to a guy who hired his live-in girlfriend to manage his rental properties.
• Here’s a possible break for PB supporters of feral cats and the Town when grossing about the high cost of the feral cat problem. A couple who ran a junkyard were able to write-off the cost of cat food for their feral cats because the felines were working: They made the property safer by getting rid of horrible critters like snakes and rats and the IRS went for it.
• Found a job and had to move? Well, providing you meet certain requirements, the cost of moving your pet(s) could be included and deductible in your moving costs.
• If your business took you to Bermuda this year for a meeting or convention or whatever, writing-off the incurred expenses are a snap because the U.S. and Bermuda exchange tax information. Hence, you’re not required to cough-up lots of documentation for the trip to qualify as an expense. That shared relationship is extended to countries in the Caribbean, other islands in the region, Canada, and Mexico. But, forget any favorable tax treatment if the convention was in Paris, London, etc. etc
Read more of Kiplinger’s 14 Extraordinary Tax Deductions at: www
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