Deductions

Deductions

Code Sections about Deductions

  • Sec. 67. 2-percent floor on miscellaneous itemized deductions
  • Sec. 68. Overall limitation on itemized deductions
  • Sec. 151. Allowance of deductions for personal exemptions
  • Sec. 161. Allowance of deductions
  • Sec. 211. Allowance of deductions
  • Sec. 241. Allowance of special deductions
  • Sec. 246. Rules applying to deductions for dividends received
  • Sec. 261. General rule for disallowance of deductions
  • Sec. 277. Deductions incurred by certain membership organizations in transactions with members
  • Sec. 464. Limitations on deductions for certain farming
  • Sec. 465. Deductions limited to amount at risk
  • Sec. 470. Limitation on deductions allocable to property used by governments or other tax-exempt entities
  • Sec. 482. Allocation of income and deductions among taxpayers
  • Sec. 642. Special rules for credits and deductions
  • Sec. 671. Trust income, deductions, and credits attributable to grantors and others as substantial owners
  • Sec. 804. Life insurance deductions
  • Sec. 805. General deductions
  • Sec. 809. Reduction in certain deductions of mutual life insurance companies – REPEALED
  • Sec. 873. Deductions
  • Sec. 874. Allowance of deductions and credits
  • Sec. 1358. Allocation of credits, income, and deductions
  • Sec. 2524. Extent of deductions
  • Sec. 3123. Deductions as constructive payments
  • Sec. 3307. Deductions as constructive payments
  • Sec. 6034. Returns by trusts described in section 4947(a)(2) or claiming charitable deductions under section 642(c)
  • Some Content about Deductions

  • Alimony Paid
  • Autos, Computers, Electronic Devices (Listed Property) (IRS FAQ)
  • Bad Debt Deduction
  • Business Entertainment Expenses
  • Business Travel Expenses
  • Business Use of Car
  • Business Use of Home
  • Business Use of Home – Is It Deductible?
  • Car Donations
  • Casualty and Theft Losses
  • Casualty, Disaster, and Theft Losses
  • Clean-Fuel Deduction
  • Contributions
  • Contributions (IRS FAQ)
  • Contributions of Motor Vehicles, Boats, and Airplanes
  • Deductible Taxes
  • Deducting a Sec. 754 Depreciation Adjustment
  • Domestic Production Activities Deduction
  • Education & Work-Related Expenses (IRS FAQ)
  • Educational Expenses
  • Educator Expense Deduction
  • Employee Business Expenses
  • Equitable or Beneficial Ownership
  • Gifts & Charitable Contributions (IRS FAQ)
  • Home Mortgage Points
  • Home Office Expenses of a One-Man Corporation
  • Individual Retirement Arrangements (IRAs)
  • Interest Expense
  • Interest, Investment, Money Transactions (Alimony, Bad Debts, Applicable Federal Interest Rate, Gambling, Legal Fees, Loans, etc.) (IRS FAQ)
  • Meals
  • Medical and Dental Expenses
  • Medical, Nursing Home, Special Care Expenses (IRS FAQ)
  • Miscellaneous Expenses
  • Mortgage Interest Deduction on Sale of Second Home Held for Investment Purposes
  • Moving Expenses
  • Other Deduction Questions (IRS FAQ)
  • Partner Section 179 Expense Deduction
  • Points Paid by Seller
  • Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses) (IRS FAQ)
  • Sales Tax Deduction – Optional Table Method
  • Should I Itemize?
  • State Deductions (CA – NOL Deductions Suspended then Reinstated and PA – Section 179 Deduction)
  • Student Loan Interest Deduction
  • Tax Shelters
  • Tuition and Fees Deduction
  • Description and Definition of Deductions

    Items that directly reduce taxable income. Deductions such as alimony, capital losses, moving expenses, business losses, and deductible IRA and Keogh contributions can offset gross income even if you don't have enough deductions to itemize. Personal expenses such as medical costs, mortgage interest, state and local taxes, employee business expenses, and charitable contributions are deductible only if you itemize your deductions. All taxpayers may claim a standard deduction. If your qualifying expenses exceed your standard deduction, you may claim the higher amount by itemizing your deductions. Although no records are needed to back up your right to the standard deduction, you must maintain records of qualifying expenditures if you itemize.

    Section 179 Deductions Issue

    You may find information about Section 179 Deductions in this Tax Platform of the American Encyclopedia of Law.

    Resources

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    Further Reading

    Circular 230

    Circular 230

    Circular 230 means: an U.S. Internal Revenue Service (IRS) publication that sets forth the requirements and responsibilities of professional preparers of tax returns. The statement details educational, ethical, and procedural guidelines.

    Treasury Department Circular No. 230 – Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, Enrolled Retirement Plan Agents, and Appraisers before the Internal Revenue Service.

    Treasury Department Circular 230 (Rev. 8-2011)
    Treasury Department Circular 230 (Rev. 4-2008)
    Treasury Department Circular 230 (Rev. 6-2005) (previous version, for archival or historical purposes only)

    Contents of the Treasury Department Circular 230 (Rev. 6-2005)

    Important Note: This is the old circular 230.

    Title 31 Code of Federal Regulations, Subtitle A, Part 10, revised as of June 20, 2005
    PART 10 — PRACTICE BEFORE THE INTERNAL REVENUE SERVICE
    Sec.
    10.0 Scope of part
    Subpart A — Rules Governing Authority to Practice
    10.1 Director of Practice
    10.2 Definitions
    10.3 Who may practice
    10.4 Eligibility for enrollment
    10.5 Application for enrollment
    10.6 Enrollment
    10.7 Representing oneself; participating in rulemaking; limited practice; special appearances; and return preparation
    10.8 Customhouse brokers
    Subpart B — Duties and Restrictions Relating to Practice Before the Internal Revenue Service
    10.20 Information to be furnished
    10.21 Knowledge of client’s omission
    10.22 Diligence as to accuracy
    10.23 Prompt disposition of pending matters
    10.24 Assistance from or to disbarred or suspended persons and former Internal Revenue Service employees
    10.25 Practice by former Government employees, their partners and their associates
    10.26 Notaries
    10.27 Fees
    10.28 Return of client’s records
    10.29 Conflicting interests
    10.30 Solicitation
    10.31 Negotiation of taxpayer checks
    10.32 Practice of law
    10.33 Best practices for tax advisors
    10.34 Standards for advising with respect to tax return positions and for preparing or signing returns
    10.35 Requirements for covered opinions
    10.36 Procedures to ensure compliance
    10.37 Requirements for other written advice
    10.38 Establishment of advisory committees
    Subpart C — Sanctions for Violation of the Regulations
    10.50 Sanctions
    10.51 Incompetence and disreputable conduct
    10.52 Violation of regulations
    10.53 Receipt of information concerning practitioner
    Subpart D — Rules Applicable to Disciplinary Proceedings
    10.60 Institution of proceeding
    10.61 Conferences
    10.62 Contents of complaint
    10.63 Service of complaint; service and filing of other papers
    10.64 Answer; default
    10.65 Supplemental charges
    10.66 Reply to answer
    10.67 Proof; variance; amendment of pleadings
    10.68 Motions and requests
    10.69 Representation; ex parte communication
    10.70 Administrative Law Judge
    10.71 Hearings
    10.72 Evidence
    10.73 Depositions
    10.74 Transcript
    10.75 Proposed findings and conclusions
    10.76 Decision of Administrative Law Judge
    10.77 Appeal of decision of Administrative Law Judge
    10.78 Decision on appeal
    10.79 Effect of disbarment, suspension, or censure
    10.80 Notice of disbarment, suspension, censure or disqualification
    10.81 Petition for reinstatement
    10.82 Expedited suspension upon criminal conviction or loss of license for cause
    Subpart E — General Provisions
    10.90 Records
    10.91 Saving Clause
    10.92 Special Orders
    10.93 Effective date
    Addendum

    Circular 230 Issue

    You may find information about Circular 230 in this Tax Platform of the American Encyclopedia of Law.

    Tenancy By the Entirety

    Tenancy By the Entirety

    Tenancy By the Entirety means:
    a form of joint ownership for real estate that exists only between husband and wife with equal rights of possession and enjoyment during their joint lives and with the right of survivorship; that is, when one dies, the property goes to the surviving tenant. Tenancy by the entirety is recognized in some states. Former IRC (check if this IRC provision is current here) §2040.

    Example of Tenancy By the Entirety:

    Learn more about tax examples, explanations and calculations here.

    A married couple owns property as tenants by the entirety. Neither spouse can convey his or her part of the property during the lives of the couple unless the other consents, a feature that is different from joint tenancy. Divorced spouses are tenants in common; see also tenancy in common.

    Description and Definition of Tenancy by the Entirety

    A joint tenancy in real property in the name of both husband and wife. If one owner dies the other takes the entire estate.

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    Further Reading

    Grantor Trust

    Grantor Trust

    Grantor Trust means:
    a trust that has beneficiaries other than the grantor but, because interests or certain powers over the trust, are retained, all income of the trust is taxed to the grantor. Former IRC (check if this IRC provision is current here) §§671-677.

    Description and Definition of Grantor Trust

    A trust in which the grantor retains some interest and control and as a result is taxed on any income from the trust.

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    Further Reading