Оглавление
Barbara Weltman. J.K. Lasser's 1001 Deductions and Tax Breaks 2022
Table of Contents
List of Tables
Guide
Pages
J.K. LASSER'S™ 1001 DEDUCTIONS AND TAX BREAKS 2022. Your Complete Guide to Everything Deductible
Introduction
Tax‐Favored Items
Limits on Qualifying for Tax‐Favored Items
Standard Deduction versus Itemized Deductions
Example
Impact of Deductions on Your Chances of Being Audited
How to Use This Book
CHAPTER 1 You and Your Family
Marital Status
Dependents
Qualifying Child
Qualifying Relative
Child Tax Credit
Benefit
Conditions
QUALIFYING CHILD
QUALIFYING DEPENDENT
MAGI LIMIT
Example
ADDITIONAL CHILD TAX CREDIT
Planning Tips
Pitfalls
Where to Claim the Credit
Earned Income Credit
Benefit
Conditions
QUALIFYING CHILDREN
EARNED INCOME
ADJUSTED GROSS INCOME
JOINT RETURN
Example
CHILDLESS INDIVIDUALS
Planning Tips
Pitfalls
Where to Claim the Earned Income Credit
Dependent Care Expenses
Benefit
Example
Conditions for the Tax Credit
INCUR THE EXPENSES TO EARN INCOME
Example
PAY EXPENSES ON BEHALF OF A QUALIFYING DEPENDENT
EXAMPLES OF QUALIFYING EXPENSES
PAY OVER HALF THE HOUSEHOLD EXPENSES
FILE A JOINT RETURN IF MARRIED
HAVE AGI BELOW SET LIMITS
Example
Example
MEET A RESIDENCY REQUIREMENT
REPORT INFORMATION ABOUT THE DEPENDENT CARE PROVIDER
HOW TO FIGURE YOUR CREDIT PERCENTAGE BASED ON AGI
Example
Conditions for the Exclusion
Planning Tips
Pitfalls
Example
Where to Claim the Tax Credit or Exclusion
Adoption Costs
Benefits
Example
Conditions
QUALIFIED ADOPTION EXPENSES
EXAMPLES OF QUALIFIED ADOPTION EXPENSES
MODIFIED ADJUSTED GROSS INCOME LIMIT
Example
Planning Tips
Pitfall
CHILD WHO IS A U.S. CITIZEN OR RESIDENT
FOREIGN CHILD
Where to Claim the Adoption Credit, Exclusion, or Penalty Waiver
Example
Foster Care
Benefit
Condition
Planning Tip
Pitfalls
Where to Claim the Exclusion
Child Support
Benefit
Conditions
Planning Tip
Example
Pitfalls
Where to Claim the Exclusion
Alimony
Benefit
Conditions
PAYABLE UNDER A COURT DECREE
CASH PAYMENTS
LIVING APART
Payment Responsibility Ends on Death
Planning Tips
Pitfalls
Where to Claim the Deduction
ABLE Accounts
CHAPTER 2 Medical Expenses
Individual Mandate
Employer‐Provided Health Insurance
Benefit
Conditions
Planning Tips
Pitfalls
Where to Report the Benefit
Premium Tax Credit
Benefit
Conditions
COVERAGE THROUGH AN EXCHANGE
APPLY FOR THE CREDIT
HOUSEHOLD INCOME LIMITS
Example
UNAFFORDABLE EMPLOYER COVERAGE
INFORMATION RETURNS
Planning Tips
Pitfalls
Where to Claim the Credit
Health Coverage Tax Credit
Benefit
Example
CONDITIONS
EXAMPLES OF QUALIFYING HEALTH INSURANCE
Planning Tips
Looking Ahead
Pitfalls
Where to Claim the Credit
Itemized Medical Expenses
Benefit
Example
Conditions
Example
Examples of Deductible Medical Expenses. PROFESSIONAL SERVICES
DENTAL SERVICES
EQUIPMENT AND SUPPLIES
HOME IMPROVEMENTS
INSURANCE
MEDICINE AND DRUGS
TESTS
TREATMENTS AND PROGRAMS
TRAVEL
Planning Tips
Pitfalls
Where to Claim the Deduction
RECORDKEEPING
Self‐Employed Health Insurance Deduction
Benefit
Conditions
Example
Planning Tips
Pitfalls
Where to Claim the Deduction
Long‐Term Care Coverage
Benefit
Conditions
CONDITIONS FOR THE DEDUCTION
Example
CONDITIONS FOR THE EXCLUSION
Planning Tips
Pitfall
Where to Claim the Deduction and/or Exclusion
Flexible Spending Accounts for Health Care
Benefit
Conditions
Note
Planning Tips
Example
Pitfalls
Where to Claim the Benefit
Health Reimbursement Arrangements
Individual Coverage HRAs
Planning Pointers
Pitfall
Where to Claim the Benefit
Excepted Benefit HRAs
Planning Pointers
Pitfall
Where to Claim the Benefit
QSEHRAs
Benefit
Conditions
Planning Tip
Pitfalls
Where to Claim the Benefit
Health Savings Accounts
Benefit
Conditions
MEDICARE
QUALIFYING HIGH‐DEDUCTIBLE HEALTH INSURANCE
Tax‐Free Withdrawals
Examples of Screening Services Treated as Medical Expenses for HSAs. CANCER SCREENING
HEART AND VASCULAR DISEASES SCREENING
INFECTIOUS DISEASES SCREENING
MENTAL HEALTH CONDITIONS AND SUBSTANCE ABUSE SCREENING
METABOLIC, NUTRITIONAL, AND ENDOCRINE CONDITIONS SCREENING
MUSCULOSKELETAL DISORDERS SCREENING
OBSTETRIC AND GYNECOLOGIC CONDITIONS SCREENING
PEDIATRIC CONDITIONS SCREENING
PREVENTIVE CARE PAYABLE BY HDHPs FOR THOSE DIAGNOSED WITH SPECIFIED CONDITIONS
VISION AND HEARING DISORDERS SCREENING
Planning Tips
Example
Pitfalls
Where to Claim the Benefits
Archer Medical Savings Accounts
Benefit
Conditions
Example
Example
Example
Planning Tips
Pitfalls
Example
WHEN YOU DIE
Where to Claim the Benefits
REPORTING INCOME
ABLE Accounts
Benefit
Conditions
Planning Tips
Pitfalls
Where to Claim the Benefit
COBRA Coverage
Benefits
Conditions for Coverage
SECOND COBRA ELECTION PERIOD
Planning Tips
Pitfalls
Where to Claim the Deduction
Medicare
Benefit
Conditions
Planning Tips
Pitfalls
Example
Where to Claim the Deduction
Continuing Care Facilities and Nursing Homes
Benefit
Conditions
Planning Tip
Example
Pitfall
Where to Claim the Benefit
Accelerated Death Benefits
Benefit
Conditions
LIMITS FOR THE CHRONICALLY ILL
Planning Tip
Pitfall
Where to Claim the Benefit
Decedent's Final Illness
Benefit
Example
Condition
Planning Tip
Pitfall
EXAMPLES OF NONDEDUCTIBLE EXPENSES FOR A DECEDENT
Where to Claim the Benefit
Medical Insurance Rebates
Benefit
Where to Report the Rebate
CHAPTER 3 Education Costs
FAFSA Submissions
Example
Employer‐Paid Education Assistance
Benefit
Conditions
EMPLOYER‐PAID EDUCATION
TUITION REDUCTION
STUDENT LOAN REPAYMENT
Planning Tip
Example
Pitfalls
Where to Claim the Exclusion
Scholarships, Fellowships, and Grants
Benefit
Condition
Planning Tips
Pitfalls
Where to Claim the Exclusion
American Opportunity Credit
Benefit
Conditions
FIRST 4 YEARS OF HIGHER EDUCATION
Example
ELIGIBLE STUDENT
ELIGIBLE EDUCATIONAL INSTITUTION
QUALIFIED HIGHER EDUCATION COSTS
Example
MAGI LIMIT
Example
Planning Tips
Pitfalls
Example
Example
Where to Claim the Credit
Lifetime Learning Credit
Benefit
Conditions
ELIGIBLE STUDENT
HIGHER EDUCATION
Planning Tip
Pitfalls
Where to Claim the Credit
Work‐Related Education
Benefit
Conditions
SELF‐EMPLOYED
MINIMUM JOB REQUIREMENTS
Example
MAINTAIN OR IMPROVE SKILLS REQUIRED BY LAW
EXAMPLES OF DEDUCTIBLE COURSES
NOT A NEW LINE OF WORK
EXAMPLES OF NONDEDUCTIBLE COURSES
ELIGIBLE EDUCATION EXPENSES
Planning Tip
Pitfall
Where to Claim the Deduction
Student Loan Interest
Benefit
Conditions
LOAN QUALIFICATIONS
MAGI LIMITS
Example
Planning Tips
Pitfalls
Where to Claim the Deduction
Interest on U.S. Savings Bonds
Benefit
Conditions
ELIGIBLE BONDS
ELIGIBLE TAXPAYER
MAGI LIMIT
Example
QUALIFIED USE OF REDEMPTION PROCEEDS
Example
Planning Tips
Pitfalls
Where to Claim the Exclusion
Coverdell Education Savings Accounts
Benefit
Conditions
ELIGIBLE BENEFICIARY
MAGI FOR CONTRIBUTORS
Example
CASH CONTRIBUTIONS
ELIGIBLE EXPENSES
EXAMPLES OF ELIGIBLE ELEMENTARY AND SECONDARY SCHOOL EXPENSES
EXAMPLES OF ELIGIBLE HIGHER EDUCATION EXPENSES
Planning Tips
Example
Example
Pitfalls
Example
Example
Where to Claim the Exclusion
Qualified Tuition Programs (529 Plans)
Benefit
Conditions
QUALIFIED TUITION PROGRAMS
QUALIFIED EXPENSES
Planning Tips
Example
Pitfalls
Example
Where to Claim the Exclusion
ABLE Accounts
Seminars
Benefit
Where on the Return to Claim the Deduction
Educational Travel
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Deduction
Cancellation of a Student Loan
Benefit
Example
Conditions
Planning Tips
Pitfalls
Where to Claim the Benefit
Penalty‐Free Withdrawals from IRAs
Government Reimbursements
Internships and Apprenticeships
COVID‐19‐Related Grants
CHAPTER 4 Your Home
Mortgages
Benefit
Conditions
ACQUISITION INDEBTEDNESS
Example
Example
DEBT SECURED BY THE HOME
TWO‐RESIDENCE LIMIT
Example
PERSONAL LIABILITY
DOLLAR LIMIT
Example
Example
DISTRESSED HOMEOWNERS
Planning Tips
Example
Pitfalls
Where to Claim the Deduction
Mortgage Interest Tax Credit
Benefit
Conditions
QUALIFIED MORTGAGE CREDIT CERTIFICATE
QUALIFIED HOME
Planning Tips
Pitfalls
Where to Claim the Credit
Home Equity Loans
Example
Points
Benefit
Conditions
IMMEDIATE DEDUCTIBILITY
DEDUCTIBLE OVER THE TERM OF THE LOAN
Example
Planning Tips
Pitfall
Example
Where to Claim the Deduction
Prepayment Penalties
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Deduction
Late Payment Penalties
Benefit
Example
Condition
Planning Tip
Pitfall
Where to Claim the Deduction
Mortgage Insurance
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Deduction
Looking Ahead
Reverse Mortgages
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Benefit
Cancellation of Mortgage Debt
Benefit
Conditions
Planning Tip
Pitfalls
Where to Claim the Benefit
Penalty‐Free IRA Withdrawals for Home‐Buying Expenses
Benefit
Condition
Planning Tip
Pitfalls
Where to Claim the Benefit
Real Estate Taxes
Benefit
Conditions
Planning Tips
Pitfalls
Where to Claim the Deduction
Cooperative Housing
Benefits
Condition
Planning Tip
Pitfalls
Where to Claim the Deduction
Minister's Housing Allowance
Benefit
Conditions
Planning Tip
Pitfalls
Example
Where to Claim the Exclusion
Home Sale Exclusion
Benefit
Conditions
MAIN HOME
OWNERSHIP TEST
USE TEST
Example
PARTIAL EXCLUSION
Planning Tips
EXAMPLES OF CAPITAL IMPROVEMENTS
Example
Pitfalls
Example
Where to Claim the Exclusion
Moving Expenses for Active Duty Military Personnel
Benefit
EXAMPLES OF DEDUCTIBLE TRAVEL EXPENSES FOR THE MOVING DEDUCTION
Condition
Planning Tip
Pitfalls
EXAMPLES OF NONDEDUCTIBLE MOVING EXPENSES
Where to Claim the Deduction
Energy Improvements
Benefit
Conditions
NONBUSINESS ENERGY PROPERTY IMPROVEMENTS
ELIGIBLE ITEMS
LIMITATIONS
SOLAR POWER AND FUEL CELLS
Looking Ahead
Planning Tips
Pitfalls
Where to Claim the Credits
ABLE Accounts
Disaster Rules for Casualties to Your Home
COVID‐19 Emergency Assistance
Home Office Deduction
CHAPTER 5 Retirement Savings
Traditional IRAs
Benefit
Example
Conditions for Making Contributions
EARNED INCOME
CASH CONTRIBUTIONS
Condition for Claiming a Deduction
Example
Planning Tips
Example
Pitfalls
EARLY DISTRIBUTION PENALTIES
EXCESS CONTRIBUTIONS PENALTY
Example
Example
PENALTY FOR INSUFFICIENT WITHDRAWALS
Looking Ahead
INVESTMENT LIMITATIONS
BORROWING LIMITATIONS
ACCOUNT LOSSES
Where to Claim the Deduction
Roth IRAs
Benefit
CONVERSION
Conditions for Making Roth IRA Contributions
MAGI LIMIT
Example
Conditions for Converting a Traditional IRA or 401(k) to Roths
Conditions for Tax‐Free Income Withdrawals
Example
Planning Tips
Example
Pitfalls
Example
Where to Claim the Benefit
IRA Rollovers
Benefit
Conditions
DIRECT TRANSFERS
DISTRIBUTION AND REINVESTMENT
Planning Tips
Example
Pitfall
Where to Claim the Benefit
401(k) and Similar Plans
Benefit
Example
Conditions
ELECTIVE DEFERRAL LIMITS
Example
Planning Tips
Example
Pitfalls
Where to Claim the Benefit
Self‐Employed Retirement Plans
Benefit
Conditions
Example
Planning Tip
Pitfalls
Where to Claim the Benefit
SEPs
Benefit
Example
Conditions
Planning Tips
Example
Pitfall
Where to Claim the Benefit
SIMPLEs
Benefit
Conditions
ELECTIVE DEFERRAL LIMIT
Example
REQUIRED EMPLOYER CONTRIBUTION
Example
Example
Example
Example
Planning Tips
Pitfalls
Where to Claim the Deduction
Retirement Saver's Credit
Benefit
Conditions
QUALIFIED RETIREMENT SAVINGS CONTRIBUTIONS
Example
ELIGIBLE INDIVIDUAL
MAGI LIMIT
Example
Planning Tip
Pitfalls
Example
Where to Claim the Credit
Custodial/Trustee Fees
Employer‐Paid Retirement Planning Advice
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Benefit
Charitable Transfers of IRA Distributions
Benefit
Example
Conditions
Planning Tips
Pitfalls
Example
Example
Where to Claim the Exclusion
Qualified Longevity Annuity Contracts
Benefit
Conditions for a QLAC
MAXIMUM INVESTMENT
DEFERRAL PERIOD
BAR TO OTHER DISTRIBUTIONS
Planning Tip
Pitfalls
Where to Report the QLAC
Hardship Distributions from Retirement Plans
Special Rules for COVID‐19 and Disasters
COVID‐19‐Related Relief
Example
Disaster Relief
CHAPTER 6 Charitable Giving
Cash Donations
Benefit
Example
Example
Conditions
QUALIFIED CHARITY
AGI LIMIT
DEDUCTION FOR NON‐ITEMIZERS
SUBSTANTIATION
EXAMPLES OF DEDUCTIBLE CONTRIBUTIONS
Planning Tips
TIMING ISSUES
AGI PLANNING
Example
Pitfalls
NONQUALIFIED ORGANIZATIONS
OTHER NONDEDUCTIBLE DONATIONS
EXPIRATION OF CARRYOVER
Where to Claim the Deduction
Appreciated Property Donations
Benefit
Example
Conditions
HOLDING PERIOD
TANGIBLE PROPERTY USED IN THE CHARITY EXEMPT PURPOSE
PROPERTY IS NOT ORDINARY INCOME PROPERTY
SUBSTANTIATION REQUIREMENTS
Planning Tips
ELECTION TO CHANGE AGI LIMIT
Example
IRS APPRAISAL
Pitfalls
PENALTY FOR OVERVALUATIONS
Example
DONATIONS OF PROPERTY THAT HAS DECLINED IN VALUE
Example
APPRAISALS AND ADDITIONAL COSTS
Where to Claim the Deduction
Used Clothing and Car Donations
Benefit
Conditions
Planning Tips
Pitfalls
Where to Claim the Deduction
Intellectual Property Donations
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Deduction
Real Estate Donated for Conservation Purposes
Benefit
Conditions
Planning Tips
Pitfalls
Where to Claim the Deduction
Bargain Sales
Benefit
Example
Conditions
Planning Tip
Pitfall
Where to Claim the Deduction
Volunteer Expenses
Benefit
Conditions
EXAMPLES OF DEDUCTIBLE UNREIMBURSED EXPENSES
Planning Tip
Pitfall
Where to Claim the Deduction
Tickets to Fund‐Raisers, Raffles, and Sporting Events
Benefit
Example
Condition
Planning Tip
Pitfalls
Where to Claim the Deduction
Membership Fees to Nonprofit Organizations
Benefit
Example
Student Exchange Program
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Deduction
Special Inventory Donations
Donor‐Advised Funds
Benefit
Conditions
Planning Tip
Pitfalls
Where to Claim the Deduction
Sophisticated Charitable Giving Arrangements
IRA Transfers to Charity
Leave‐Based Donation Programs
Record Keeper for Your Charitable Giving
CHAPTER 7 Your Car
Business Use of Your Personal Car
Benefit
Conditions
STANDARD MILEAGE RATE
DEPRECIATION
Example
DOLLAR LIMIT
Example
Example
SUBSTANTIATION
Planning Tips
Pitfalls
Where to Claim the Benefit
Employer‐Provided Car
Benefit
Example
Condition
Planning Tip
Pitfalls
Where to Claim the Benefit
Vehicle Registration Fees
Benefit
Conditions
Example
Planning Tip
Pitfall
Where to Claim the Benefit
Car Accidents and Other Car‐Related Problems
Donating Your Car
Credit for Plug‐In Electric Drive Vehicles
Benefit
Conditions
Planning Tips
Pitfall
Where to Claim the Credit
Car Insurance Rebates
CHAPTER 8 Investing
Penalty on Early Withdrawal of Savings
Benefit
Conditions
Planning Tip
Example
Pitfalls
Where to Claim the Benefit
Loss on Bank Deposits
Benefit
Conditions
BAD DEBT
CASUALTY LOSS
ORDINARY LOSS
Planning Tip
Pitfall
Where to Claim the Benefit
Capital Losses
Benefit
Example
Conditions
Planning Tips
Pitfalls
WASH SALE RULE
OTHER PITFALLS
INHERITED PROPERTY
Where to Claim the Loss
Capital Gains and Qualified Dividends
Benefit
Conditions
Planning Tip
Pitfalls
Where to Claim the Benefit
Worthless Securities
Benefit
Conditions
VALUE IN THE PRIOR YEAR
TOTALLY WORTHLESS
Planning Tips
Example
Pitfalls
Where to Claim the Loss
Loss on Section 1244 Stock
Benefit
Conditions
SECTION 1244 REQUIREMENTS
DOLLAR LIMIT
Planning Tip
Pitfall
Where to Claim the Loss
Margin Interest and Other Investment‐Related Borrowing
Benefit
Conditions
BORROWING FOR INVESTMENT PURPOSES
NET INVESTMENT INCOME
Planning Tip
Example
Pitfall
Where to Claim the Deduction
Amortization of Bond Premium
Benefit
Example
Example
Conditions
Planning Tips
Pitfall
Where to Claim the Deduction
Municipal Bonds
Benefit
Conditions
Planning Tip
Pitfalls
Where to Claim the Exclusion
Savings Bonds
Benefit
Conditions
Planning Tips
Example
Pitfalls
Where to Claim the Benefit
Gain on the Sale of Small Business Stock
Benefit
Conditions
SMALL BUSINESS STOCK
HOLDING PERIOD
Planning Tips
Pitfall
Example
Where to Claim the Exclusion
Gain on DC Zone Assets
Benefit
Conditions
Planning Tips
Pitfall
Where to Claim the Benefit
Gain on Reinvestments in Opportunity Zones
Benefit
Conditions
Planning Tip
Pitfall
Example
Example
Where to Elect Deferral
Foreign Taxes on Investments
Benefit
Conditions
Planning Tips
Example
Pitfalls
Where to Claim the Deduction or Credit
Exercise of Incentive Stock Options
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Benefit
Losses from Investment Ponzi Schemes
Deferral of Income in Commercial Annuities
Benefit
Conditions
Planning Tips
Pitfalls
Where to Claim the Benefit
CHAPTER 9 Travel
Business Travel
Benefit
Conditions
EXAMPLES OF BUSINESS TRAVEL EXPENSES
LOCAL OVERNIGHT STAYS
PART‐BUSINESS TRIPS WITHIN THE UNITED STATES
Example
Example
PART‐BUSINESS TRIPS ABROAD
Example
PER DIEM RATES
Planning Tips
Pitfalls
Where to Claim the Deduction
Temporary Work Assignments
Benefit
Conditions
DEFINITION OF TEMPORARY WORK ASSIGNMENTS
REGULAR PLACE OF BUSINESS
AWAY FROM HOME
Example
Example
Planning Tips
Pitfalls
Example
Pitfalls
Where to Claim the Benefit
Conventions
Benefit
Conditions
FOREIGN CONVENTIONS
CONVENTIONS ON CRUISE SHIPS
Planning Tip
Pitfall
Where to Claim the Deduction
Medical Travel
Benefit
Conditions
EXAMPLES OF MEDICAL TRAVEL COSTS
Planning Tips
Pitfall
Where to Claim the Deduction
Charitable Travel
Benefit
Conditions
Planning Tip
Pitfalls
Where to Claim the Benefit
Education‐Related Travel
Benefit
Conditions
EXAMPLES OF EDUCATIONAL TRAVEL COSTS
Example
Planning Tip
Example
Example
Pitfalls
Where to Claim the Benefit
National Guard and Military Reservist Travel
Benefit
Conditions
Planning Tips
Pitfalls
Where to Claim the Deduction
Frequent Flier Miles
Benefit
Condition
Planning Tips
Pitfalls. NOTE
Where to Claim the Exclusion
Recordkeeping for Travel Expenses
CHAPTER 10 Real Estate
Vacation Home
Benefit
Conditions for Vacation Home with No Rentals
Conditions for Vacation Home with Rentals
Tax‐Free Rental Income
Example
Business Deductions
Example
Example
Limited Business Deductions
Example
Passive Loss Limitations
Example
Planning Tip
Pitfalls
Example
Example
Where to Claim the Benefit
Home Office
Benefit
Example
Example
Conditions
Principal Place of Business
Place to Meet or Deal with Customers
Separate Structure
Exclusive Use Test
Gross Income Limitation
Example
Planning Tips
Pitfalls
Where to Claim the Deduction
Timeshares
Rentals
Benefit
Conditions
EXAMPLES OF DEDUCTIBLE RENTAL EXPENSES
Passive Loss Limitations
Example
Qualified Business Income Deduction
Planning Tips
Example
Example
Pitfall
Example
Where to Claim the Deduction
Example
Low‐Income Housing Credit
Benefit
Conditions
Low‐Income Housing Building
Planning Tip
Pitfall
Where to Claim the Credit
Rehabilitation Credit
Benefit
Conditions
Historic Structures
Minimum Rehabilitation
Example
Planning Tips
Pitfalls
Where to Claim the Credit
Like‐Kind Exchanges
Benefit. NOTE
Conditions
LIKE‐KIND PROPERTY
Example
Example
Non‐Simultaneous Exchanges
Receiving Boot
Example
Planning Tip
Pitfalls
Where to Report the Like‐Kind Exchange
Deduction for Energy‐Efficient Commercial Buildings
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Deduction
Qualified Improvement Property
Benefits
Conditions
Planning Tips
Pitfall
Where to Claim the Deduction
Conservation Easements
CHAPTER 11 Borrowing and Interest
Home Mortgage Interest
Student Loan Interest
Borrowing from Retirement Plans
Benefit
Conditions
Planning Tip
Pitfalls
Where to Report the Loan
Investment‐Related Interest
Business Interest
Benefit
Condition
Planning Tip
Pitfalls
Where to Claim the Deduction
Accrued Interest on Bond Purchases
Benefit
Condition
Planning Tips
Example
Pitfall
Where to Claim the Benefit
Below‐Market Loans
Benefit
Example
Condition
Planning Tip
Pitfall
Where to Claim the Benefit
Bad Debts
Benefit
Condition
VALID DEBT
DEBTOR‐CREDITOR RELATIONSHIP
LOAN FROM AFTER‐TAX INCOME OR CAPITAL
Example
WORTHLESSNESS
Planning Tips
Example
Pitfalls
Where to Claim the Benefit
Debt Forgiveness
Benefit
Conditions
Planning Tip
Pitfalls
Where to Claim the Benefit
CHAPTER 12 Insurance and Catastrophes
Casualty, Theft, and Disaster Losses
Benefit
Example
Conditions
TYPES OF DISASTERS
PROOF OF YOUR DISASTER LOSS
INSURANCE REIMBURSEMENTS
Example
Example
$100 OR $500 LIMIT
10%‐OF‐AGI LIMIT
Example
TIMING OF DISASTER LOSS DEDUCTION
Example
Planning Tips
Example
Pitfalls
Example
Where to Claim the Deduction
Economic Impact Payments
Benefit
Conditions
Income limitation
Example
Reconciliation
Planning Tips
Pitfall
Where to Claim the Recovery Rebate Credit
Disaster Relief Payments
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Benefit
Damages
Benefit
Example
Conditions
Planning Tip
Example
Pitfalls
Where to Claim the Benefit
Disability Coverage
Benefit
Condition
Planning Tips
Pitfall
Where to Claim the Benefit
Accelerated Death Benefits
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Benefit
Legal Fees
Identity Theft Losses
Tax Identity Theft and Relief
CHAPTER 13 Your Job
Educator Expenses
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Deduction
Prizes and Awards
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Benefit
Performing Artists
Benefit
Conditions
SPECIAL RULE FOR MARRIED INDIVIDUALS
Planning Tip
Pitfall
Example
Where to Claim the Benefit
State or Local Government Officials Paid on a Fee Basis
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Deduction
Repayment of Supplemental Unemployment Benefits
Benefit
Example
Conditions
Planning Tip
Pitfall
Where to Claim the Benefit
Jury Duty Pay Turned Over to Your Employer
Benefit
Condition
Planning Tip
Example
Pitfall
Where to Claim the Deduction
Impairment‐Related Expenses
Benefit
Conditions
EXAMPLES OF IMPAIRMENTS
Planning Tip
Pitfall
Where to Claim the Deduction
Military Benefits
Benefit
EXAMPLES OF TAX‐FREE BENEFITS
Condition
Planning Tips
Pitfall
Where to Claim the Benefit
Contributions to State Benefit Programs
Dependent Care Assistance
Benefit
Looking Ahead
Conditions
Planning tip
Pitfall
Where to Claim the Benefit
Fringe Benefits
Benefit
Conditions
Planning Tips
Pitfalls
Where to Claim the Benefit
Income Earned Abroad
Benefit
Conditions
FOREIGN EARNED INCOME
Example
Planning Tips
Example
Example
Pitfalls
Where to Claim the Benefit
CHAPTER 14 Your Business
Start‐Up Costs
Benefit
Example
Conditions
EXAMPLES OF START‐UP COSTS
Example
Planning Tips
Pitfall
Where to Claim the Benefit
Qualified Business Income Deduction
Benefit
Conditions
INCOME THRESHOLD
W‐2 LIMITATION
Example
SPECIFIED SERVICE TRADES OR BUSINESSES
OTHER LIMITATIONS
Planning Tip
Pitfalls
Where to Claim the Deduction
Equipment Purchases
Benefit
Conditions
EXAMPLES OF EQUIPMENT
Conditions for First‐Year Expensing
ELECTION
EQUIPMENT PURCHASES
CERTAIN IMPROVEMENTS TO COMMERCIAL SPACE
TAXABLE INCOME
Example
Condition for Bonus Depreciation
Conditions for Depreciation
Example
CONVENTIONS
Conditions for De Minimis Safe Harbor Rule
Planning Tips
Example
Pitfalls
Example
Where to Claim the Deduction
Payment for Services
Benefit
Conditions
WORKER CLASSIFICATION
REASONABLE PAYMENTS
PERFORMANCE OF WORK
TIMELINESS OF PAYMENT
Planning Tips
Pitfalls
Where to Claim the Deduction
Supplies
Benefit
Conditions
EXAMPLES OF DEDUCTIBLE SUPPLIES
Planning Tips
Pitfalls
Where to Claim the Benefit
Gifts
Benefit
Conditions
DOLLAR LIMIT
Example
SUBSTANTIATION REQUIREMENTS
Planning Tip
Pitfall
Where to Claim the Deduction
Self‐Employment Tax Deduction
Benefit
Conditions
Planning Tip
Pitfalls
Where to Claim the Benefit
Home Office Deduction
Farming‐Related Breaks
Benefit
Conditions
EXAMPLES OF FARMING‐RELATED DEDUCTIONS
Planning Tips
Pitfall
Where to Claim the Deduction
Other Business Deductions
Benefit
Condition
EXAMPLES OF OTHER BUSINESS DEDUCTIONS
Planning Tip
Pitfall
EXAMPLES OF NONDEDUCTIBLE EXPENSES
Where to Claim the Deduction
Business Credits
Benefit
Conditions
Planning Tips
Pitfall
Where to Claim the Credits
Net Operating Losses
Benefit
Conditions
CARRYBACKS AND CARRYFORWARDS
Example
Planning Tip
Pitfall
Where to Claim the Deduction
COVID‐19 Government Assistance
CHAPTER 15 Miscellaneous Items
State and Local Income Taxes
Benefit
Conditions
Planning Tips
Pitfalls
Where to Claim the Deduction
State and Local Sales Taxes
Benefits
Conditions
Planning Tips
Example
Pitfall
Where to Claim the Deduction
Certain Federal Taxes
Tax Refunds
Benefit
Conditions
Example
Example
Example
Planning Tip
Pitfalls
Where to Claim the Benefit
Legal Fees
Benefit
Condition
Planning Tip
Pitfall
Example
Where to Claim the Benefit
Gifts You Receive
Benefit
Condition
Planning Tip
Pitfalls
Example
Where to Claim the Benefit
Inheritances
Benefit
Condition
Planning Tips
Example
Pitfalls
Example
Where to Claim the Benefit
Life Insurance Proceeds
Benefit
Condition
Planning Tip
Pitfalls
Example
Where to Claim the Benefit
Gambling Losses
Benefit
Example
Conditions
Planning Tips
Pitfalls
Where to Claim the Deduction
Estate Tax Deduction on Income in Respect of a Decedent
Benefit
Conditions
Example
Planning Tips
Pitfall
Where to Claim the Deduction
Rebates and Discounts
Benefit
Planning Tips
Pitfall
Where to Claim the Benefit
Government Benefits
Benefit
Condition
EXAMPLES OF FULLY TAX‐FREE GOVERNMENT BENEFITS
Planning Tips
Example
Pitfalls
EXAMPLES OF TAXABLE GOVERNMENT BENEFITS
Where to Claim the Benefit
Olympic Medals
Alternative Minimum Tax
Benefit
Conditions
Planning Tip
Pitfall
Where to Claim the Exemption
APPENDIX A Items Adjusted Annually for Inflation
APPENDIX B Checklist of Tax‐Free Items
APPENDIX C Checklist of Nondeductible Items
Nondeductible Items
Index
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