Tax Deductions for You!
Tax Deductions for You!
deductions are items that taxpayers encounter frequently. Keep in mind, however, that this is a small list
of the most important tax deductions and that there are many others that could apply to your individual
case. Always discuss any big changes in your life with your tax preparer in order to ensure that you will
receive any tax savings that you are due.
- Real Estate Taxes: Property taxes paid on a home that you own are tax deductible. These taxes
include both real estate taxes and personal property taxes.
- Home Sale Expenses: Commissions and closing costs on the sale of property are tax deductible
expenses. Such expenses include interest, certain mortgage points and deductible real estate
taxes, among other things.
- Moving Expenses Related to Employment: If you end up having to relocate in order to start a
new job (as long as the move is a minimum of 50 miles from your current residence), you can
deduct most of the moving expenses.
- Charitable Donations: All charitable donations are tax deductible as long as the charity to which
the donation is made is classified as a legitimate charity. The following is a link to a great
resource guide for charities: https://www.charitynavigator.org/. It is important to note that
proper documentation is required in order to claim a charitable contribution as a tax deduction.
This being the case, it is important to keep an accurate record of all charitable donations made
during the tax year.
- Independent Contractor Expenses: If you are self-employed, you may be able to deduct 50% of
your self-employment taxes. These are taxes that you would normally pay your boss but, in this
case, it is you since you actually employ yourself. It also worth mentioning that you may be able
to deduct some retirement fund costs and some important health insurance expenses as well.
- Write-Offs for Business Equipment and Materials: This tax deduction applies to business
owners and the self-employed. Usually one can deduct the price of business equipment and
machinery over the lifetime of the resource. However, there are certain provisions in the tax
code (Section 179 – https://www.irs.gov/publications/p946/ch02.html) that speed up the rate at
which these expenses can be deducted. For example, if you purchased a copy machine during
this past year, you may be able to write most or even all of it off on your 2015 tax return.
- Costs for Work Education Courses: A tax deduction is allowed for educational expenses (books,
courses, etc.) to the extent that they required by law or your employer or if they are needed in
order to maintain or improve your skills at your current employment position.
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