Tax Deductions - Are you getting them all?

I am always impressed by the creativity of people during tax season. For example, a businessman who hired an arsonist to destroy his store attempted to take a business deduction for a $10,000 arsonist fee. The IRS rejected that claim.

An individual taxpayer built a fallout shelter for fear of a nuclear attack and attempted to deduct the costs as a preventative medical expense. That one didn't fly either.

Under IRS rules, there are many common business expenses which are allowed such as:

*Business tools
*Dues and Membership costs for professional associations
*Training & Continuing Education
*Expenses incurred during a job search
*Business trips not reimbursed by your company.
*Dry cleaning of work uniforms
*A home office (certain rules apply)

Remember, for the expense to be deductible, the first rule is the expense needs to be ordinary and necessary in the operation of the business.

There are many other deductible expenses even if you do not own your own business.

*Mortgage interest
*Premimums paid for health insurance (needs to exceed 7.5% of your AGI)
*Student Loan interest
*Upto $250 of unreimbursed expenses for teachers
*Charitable donations including non-cash items
*Job related moving expenses

It is essential lto be aware of what you can and cannot deduct. If you are unsure if you qualify for a certain deduction you should consult with a tax professional such as an Enrolled Agent. The laws can be tricky. An "adult performer' successfully deducted the price of breast implants since they were vital to her job. However, a male model attempted to write off his entire designer wardrobe as he was required to always look his best. Since they wren't official compnay clothes, the deduction was disallowed.

Get all the deductions you deserve.