USA 2010 Tax Questions

[Thunder]

are utilities tax deductable? gas, electricity, home heating oil, etc.

how about gasoline to get to work?

[The Central Scrutinizer]

are utilities tax deductable? gas, electricity, home heating oil, etc.

Not generally. Unless you are claiming a home office. If you are, tread very, very lightly.

how about gasoline to get to work?

Usually not, unless you claim it as a business expense. Which you can't do, if you aren't a business.

[Thunder]

my friend told me that his accountant claims the cost of newspapers, as tax deductions.

:)

I however, did indeed deduct the checks that I sent to my pension, to buy back previous time that I had not paid for in pension contributions. I am confident these are tax-deductible.


and yes, my contributions and the small amounts I have been using to buy back time, over the last 6 years, have been Federally taxed.

....no, I am sorry, they are pre-tax income.

[Ray Brady]

Regardless of how you get to work, your regular commuting costs are generally not deductible. Out-of-the-ordinary business travel can be, like driving to a sales convention or training seminar.

[The Central Scrutinizer]

my friend told me that his accountant claims the cost of newspapers, as tax deductions.

As do I. Those are business expenses. Unless you are running a business, they aren't deductible.

[Thunder]

As do I. Those are business expenses. Unless you are running a business, they aren't deductible.

my friend is a security guard. :)


wait...so if I incorporate myself, I can deduct all utilities and gas.....as a business expense?

[psionl0]

Your corporation can claim that part of utilities it has to pay for as an expense. It can't claim your private utility use as an expense. It can also claim the wages it pays you as an expense (but you privately pay tax on it). Your business is also responsible for your health insurance and superannuation.

Generally, it is not worthwhile incorporating unless you are dealing with a sizeable income.

BTW, I'm not sure how it works in the US but the Australian government got around individuals incorporating by saying that if you have only one customer (employer) then you are an employee no matter what entity you work through and therefore don't have the range of tax deductions available to businesses.

[Dunstan]

my friend is a security guard. :)


wait...so if I incorporate myself, I can deduct all utilities and gas.....as a business expense?

"Having a corporation" and "running a business" are not synonymous.

The IRS isn't that stupid.

[The Central Scrutinizer]

"Having a corporation" and "running a business" are not synonymous.

The IRS isn't that stupid.

One of the first things my accountant told me. :)

We were discussing creative ways of claiming expenses, and his advice was something like "No matter what scheme you come up with, someone else has already thought of it, and it's illegal".

[MG1962]

One of the first things my accountant told me. :)

We were discussing creative ways of claiming expenses, and his advice was something like "No matter what scheme you come up with, someone else has already thought of it, and it's illegal".

Although not American, the oddest deduction I was ever able to claim, was the expense in fuel of driving to my tax agent lol

[lionking]

Thunder, wouldn't the IRS website answer these questions? And far more reliably?

[Thunder]

Thunder, wouldn't the IRS website answer these questions? And far more reliably?

or my uncle, who is retired from the IRS.

new and important question:

Turbotax says that if my taxes were affected by the new tax laws that Obama signed, my tax returns will not be reviewed till mid-February.

and yes, my SS taxes did go down, so I guess this means I have to wait till mid-February for my tax returns to get reviewed huh?

that sux.

[Thunder]

"Having a corporation" and "running a business" are not synonymous.

The IRS isn't that stupid.

I am also a certified Arborist and often get calls from folks who want me to take down their tree. Does that help in my tax scheme?

;)

[welshdean]

I am also a certified Arborist and often get calls from folks who want me to take down their tree. Does that help in my tax scheme?

;)

Have you considered branching out? :duck:

[Thunder]

Have you considered branching out? :duck:


oh...I love a good tree joke. keep em' coming. :D

[WildCat]

are utilities tax deductable? gas, electricity, home heating oil, etc.
In very limited circumstances. For example, I can deduct those expenses I paid for a rental property I own when it was vacant, but I cannot deduct those expenses from my own home. I provide DirecTV to the rental apartment, so I can deduct those expenses.

how about gasoline to get to work?
Only if you itemize your return. Bear in mind you don't get to take a standard deduction when you itemize, so unless you use a real lot of gas going to and from work you're probably better off taking the standard deduction.

[The Central Scrutinizer]

or my uncle, who is retired from the IRS.

new and important question:

Turbotax says that if my taxes were affected by the new tax laws that Obama signed, my tax returns will not be reviewed till mid-February.

and yes, my SS taxes did go down, so I guess this means I have to wait till mid-February for my tax returns to get reviewed huh?

that sux.

Why do you care when it's reviewed?

[rwguinn]

Why do you care when it's reviewed?
The laws were changed, and the IRS has not yet put out the tables for depreciation, mortgage deductions, and a bunch of other stuff on Itemized deductions.
As a for instance, my taxable income is only $5000 more than my allowable deductions, yet Turbo Tax says my tax bill is 4000...
The data is not available yet. Won't be till mid-February.

[The Central Scrutinizer]

The laws were changed, and the IRS has not yet put out the tables for depreciation, mortgage deductions, and a bunch of other stuff on Itemized deductions.
As a for instance, my taxable income is only $5000 more than my allowable deductions, yet Turbo Tax says my tax bill is 4000...
The data is not available yet. Won't be till mid-February.

That's my point. It will be available when it's available. Returns will be reviewed when they're reviewed. What's the point in worrying about it?

[rwguinn]

That's my point. It will be available when it's available. Returns will be reviewed when they're reviewed. What's the point in worrying about it?
The review TurboTax describes is the review withing the program itself, which has nothing to do with the IRS review.
But I am guessing that some people grant the US Government a zero-interest loan, and want it back as quickly as possible, and are thus PO'ed that it is taking so long.
Normally, I don't file till April 15 anyway, since I often owe a few dollars...

[Thunder]

Why do you care when it's reviewed?

err...I can't get my $1,200 refund till its reviewed.

:(

[rwguinn]

As I suspected. Zero-interest loan of $100/month to USG

[The Central Scrutinizer]

err...I can't get my $1,200 refund till its reviewed.

:(

So what do you plan on doing to make them review it earlier than late-Feb?

[Dunstan]

I am also a certified Arborist and often get calls from folks who want me to take down their tree. Does that help in my tax scheme?

;)

In case you're being serious:

There are rules and guidelines (http://www.irs.gov/newsroom/article/0,,id=169490,00.html) for what the IRS considers a "business" (for which you can deduct ordinary and necessary expenses) as opposed to a hobby (for which deductions are extremely limited). See also here, (http://www.irs.gov/pub/irs-pdf/p535.pdf) although that's the 2009 booklet.

[MetalSeagull]

This is just from doing my own taxes over the years, and having a job for awhile where I had several job locations within a single day, so take it with a grain of salt.

My understanding is that your mileage to get to your first job location, and to get home from your last job location for each day is not deductible. You can take a mileage deduction for driving to other locations within the same day. But you have to have good records: your mileage when you started and ended, purpose, etc.

[JoelKatz]

You cannot deduct commuting costs, whether tolls, fares, gasoline, or mileage. However, you can deduct the costs of traveling from one business location to another, for example, if you are a driver or have to travel from your office to meet customers. One of the benefits of having a home office is that it can turn some of your commuting into "from one business location to another" travel -- your home office then sometimes becomes your first/last job location.

[Puppycow]

One of the first things my accountant told me. :)

We were discussing creative ways of claiming expenses, and his advice was something like "No matter what scheme you come up with, someone else has already thought of it, and it's illegal".

Joe Miller seemed to be pretty good at it.