Category Archives: Tax Deductions

2017 IRS Income Tax Changes

Besides changing the 2017 Income Tax Brackets and the 2017 Earned Income Credit, the IRS announced other inflation linked changes to amounts in the tax code. These other deduction and credit amounts are important in 2017 and can affect how much taxes are paid. The tax items for tax year 2017 of greatest interest to most… Read More »

2016 Standard Mileage Rates for Business, Medical and Moving

The IRS today issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.   2016 Business Mileage Deduction Rate Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will… Read More »

Restrictions on Travel Expenses Deductions on Business Taxes

The possibility always exists that taxpayers will attempt to treat vacation or pleasure travel as deductible business travel. To prevent such practices, the tax law contains restrictions on certain travel expenses.   Deducting Travel Expenses For travel expenses to be deductible, a convention must be directly related to the taxpayer’s trade or business. If the proceedings… Read More »

What is Section 1244 Stock?

Ordinarily, a loss on a sale or exchange of stock is a capital loss. Capital loss treatment is generally less advantageous than ordinary deduction treatment because of the fact that a capital loss recognized by an individual is applied, first against capital gain (which is usually subject to tax at a maximum marginal rate which is lower than… Read More »

Tax deductions and credits for taxpayers in Puerto Rico

Credits and deductions for taxpayers with income from sources within Puerto Rico that are exempt from US contributions. These tax rules are a little different and can affect the taxes owed.  Residents bona fide of Puerto Rico can not claim deductions and / or credits assignable or taxable income from Puerto Rican sources that are excluded from… Read More »

Tax Deduction for Bad Debts

If someone owes you money that you can not collect, you might have a bad debt and can use this to offset income. For a description of what is considered a valid debt, see Publication 550 , Investment Income and Expenses (Income and capital expenditure) and Publication 535 , Business Expenses (Business Expenses). Usually, to deduct a bad debt, you must have previously included… Read More »