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Turbo Tax 2010 2011

2011 Federal Tax Forms 1040 Ez1040es2010 Federal Tax Forms Instructions1099xState Tax Return FreeFree File State And Federal Taxes1040ez Tax Form BookletAmending Taxes2011 1040ez Tax Forms And Instructions1040ez EfileFree Form 1040ez OnlineAmend 1040Irs Web Page Income Tax Form 2012Where Can I File My 2010 Taxes For Free1040nr CalculatorHow To File 2011 Taxes OnlineFree State Tax Usa1040 Ez Form 2012Free H & R BlockHow To File Taxes For 2009How To Amend Your Tax ReturnFree Tax Filing For 20112012 Amended 1040xIrs Tax FormsWho Can Use 1040ez2008 Amended Tax Return InstructionsWhat Can Military Claim On TaxesH&r Block BasicFree Tax Filing Online State1040ez FormHow To File An Amended Tax Return For 2012Self Employment Tax FormHow To Do An Amended Tax ReturnIrs Tax ReturnFree Tax Software1040ez Instruction BookletHow To File Self Employed Income TaxFree 2008 Tax SoftwareAmended Tax Return More:label_amended_20tax_20return More:bizfinanceForm 1040ez 2011

Turbo Tax 2010 2011

Turbo tax 2010 2011 Index A Accounting methods Accrual method, Accrual Method Cash method, Cash Method Change in, Change in Accounting Method Methods you can use, Methods you can use. Turbo tax 2010 2011 Accounting periods 52-53 week tax year, 52-53-Week Tax Year Business purpose tax year, Business Purpose Tax Year Calendar year, Calendar Year Improper tax year, Improper Tax Year Partnerships, Partnership Accrual method Expenses, Expenses Income, Income Advance payments, Advance Payment for Services Sales, Advance Payment for Sales Services, Advance Payment for Services Assistance (see Tax help) B Business purpose tax year, Business Purpose Tax Year C Calendar year, Calendar Year Cash method, Income Expenses, Expenses Income, Income Change, accounting method, Change to accrual method. Turbo tax 2010 2011 , Change in Accounting Method Comments on publication, Comments and suggestions. Turbo tax 2010 2011 Constructive receipt of income, Constructive receipt. Turbo tax 2010 2011 Corporation tax periods, Corporations (Other Than S Corporations and PSCs) Cost identification, Identifying Cost D Death of individual, short period return, Death of individual. Turbo tax 2010 2011 E Economic performance, Economic Performance Excluded entities, cash method, Excluded Entities F Fiscal year, Fiscal Year Form 1128, Improper Tax Year, Change in Tax Year 8716, Making the election. Turbo tax 2010 2011 , Making back-up election. Turbo tax 2010 2011 8752, Required payment for partnership or S corporation. Turbo tax 2010 2011 , Activating election. Turbo tax 2010 2011 970, Adopting LIFO method. Turbo tax 2010 2011 Free tax services, How To Get Tax Help H Help (see Tax help) I Inventories Cost identification, Identifying Cost FIFO, FIFO Method LIFO, LIFO Method Lower of cost or market, Lower of Cost or Market Method Perpetual or book, Perpetual or Book Inventory Retail method, Retail Method Specific identification, Specific Identification Method Uniform capitalization rules, Inventories. Turbo tax 2010 2011 Valuing, Valuing Inventory M More information (see Tax help) P Partnerships, Partnership Personal service corporation, Partnerships, S Corporations, and Personal Service Corporations (PSCs) Limit, use of cash method, Qualified PSC. Turbo tax 2010 2011 Required tax year, Partnerships, S Corporations, and Personal Service Corporations (PSCs), Personal Service Corporation (PSC) Publications (see Tax help) R Related persons, Related Persons S S corporations, S Corporation Section 444 election, Section 444 Election Short period return, Short period return. Turbo tax 2010 2011 Short tax year, Short Tax Year Suggestions for publication, Comments and suggestions. Turbo tax 2010 2011 T Tax help, How To Get Tax Help Tax year Change in, Change in Tax Year Corporations, Corporations (Other Than S Corporations and PSCs) Fiscal year, Fiscal Year Personal service corporation, Personal Service Corporation (PSC) S corporations, S Corporation Section 444 election, Section 444 Election Short tax year, Short Tax Year Taxpayer Advocate, Taxpayer Advocate Service. Turbo tax 2010 2011 TTY/TDD information, How To Get Tax Help U Uniform capitalization rules Exceptions, Exceptions. Turbo tax 2010 2011 General rules, Uniform Capitalization Rules Prev  Up     Home   More Online Publications
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IRS Nationwide Tax Forums Online

The IRS Nationwide Tax Forums Online (NTFO) provides information for tax professionals from the speakers at the IRS Nationwide Tax Forums. Each online, self-study seminar includes interactive video synchronized with a PowerPoint presentation, along downloadable slides and complete transcripts.
NTFO seminars may be taken for either continuing professional education (CPE) credit or audit. NTFO is registered with the Internal Revenue Service and the National Association of State Boards of Accountancy (NASBA) as an approved sponsor of continuing professional education for CPAs and EAs. No prerequisites are required before taking the seminars on the NTFO website.
NTFO seminars allow its users to learn at their own pace, any time of day, from any location. The seminars are broken into chapters for easier viewing. To earn credit for a seminar, create an NTFO account and purchase the seminar, answer review questions at the end of each chapter, and pass a short, multiple-choice final examination. The seminar may be viewed repeatedly; however, the final examination can only be attempted two times. After passing the final examination, the user can immediately print the certificate of completion.
NTFO offers seminars from the 2009 through 2013 IRS Nationwide Tax Forums (some seminars are only available for audit).

IR-2013-89: Seminars from the 2013 Forums Now Available at IRS Nationwide Tax Forums Online

2013 NTFO Seminars

  • 2013 New Roth Conversion Opportunities & Other Retirement Curveballs
  • Automated Underreporter (AUR) and Correspondence Examinations
  • Collection Alternatives for your Small Business Clients
  •  The Collection Appeal Program (CAP):  Do you know what to expect during a CAP Appeal?
  • Doing the Right Thing: TIGTA, Integrity and You
  • Getting the Most out of Child-Related Tax Benefits
  • Grab the Money and Run? Retirement Plan Loans and Hardship Distributions
  • ITINs and Filing a Tax Return: Advocating for your Client during the ITIN Application Process
  • The New Form 706
  • Overview of 2013 Income Tax Changes
  • An Overview of Circular 230 and the Office of Professional Responsibility (OPR) for New Tax Professionals
  • Post Appeals Mediation (PAM): Do you know what to expect during PAM?
  • Return Preparer Fraud: Remedies for the Taxpayer
  • What Every Tax Return Preparer Needs to Know: Key Circular 230 Provisions

For more information, visit IRS Nationwide Tax Forums Online.

Page Last Reviewed or Updated: 08-Nov-2013

The Turbo Tax 2010 2011

Turbo tax 2010 2011 28. Turbo tax 2010 2011   Miscellaneous Deductions Table of Contents What's New Introduction Useful Items - You may want to see: Deductions Subject to the 2% LimitUnreimbursed Employee Expenses (Line 21) Tax Preparation Fees (Line 22) Other Expenses (Line 23) Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses What's New Standard mileage rate. Turbo tax 2010 2011  The 2013 rate for business use of a vehicle is 56½ cents per mile. Turbo tax 2010 2011 Introduction This chapter explains which expenses you can claim as miscellaneous itemized deductions on Schedule A (Form 1040). Turbo tax 2010 2011 You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. Turbo tax 2010 2011 This chapter covers the following topics. Turbo tax 2010 2011 Deductions subject to the 2% limit. Turbo tax 2010 2011 Deductions not subject to the 2% limit. Turbo tax 2010 2011 Expenses you cannot deduct. Turbo tax 2010 2011 You must keep records to verify your deductions. Turbo tax 2010 2011 You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. Turbo tax 2010 2011 For more information on recordkeeping, get Publication 552, Record- keeping for Individuals. Turbo tax 2010 2011 Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income 529 Miscellaneous Deductions 535 Business Expenses 587 Business Use of Your Home (Including Use by Daycare Providers) 946 How To Depreciate Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040). Turbo tax 2010 2011 You can claim the amount of expenses that is more than 2% of your adjusted gross income. Turbo tax 2010 2011 You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Turbo tax 2010 2011 Your adjusted gross income is the amount on Form 1040, line 38. Turbo tax 2010 2011 Generally, you apply the 2% limit after you apply any other deduction limit. Turbo tax 2010 2011 For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed in chapter 26) before you apply the 2% limit. Turbo tax 2010 2011 Deductions subject to the 2% limit are discussed in the three categories in which you report them on Schedule A (Form 1040). Turbo tax 2010 2011 Unreimbursed employee expenses (line 21). Turbo tax 2010 2011 Tax preparation fees (line 22). Turbo tax 2010 2011 Other expenses (line 23). Turbo tax 2010 2011 Unreimbursed Employee Expenses (Line 21) Generally, you can deduct on Schedule A (Form 1040), line 21, unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. Turbo tax 2010 2011 An expense is ordinary if it is common and accepted in your trade, business, or profession. Turbo tax 2010 2011 An expense is necessary if it is appropriate and helpful to your business. Turbo tax 2010 2011 An expense does not have to be required to be considered necessary. Turbo tax 2010 2011 Examples of unreimbursed employee expenses are listed next. Turbo tax 2010 2011 The list is followed by discussions of additional unreimbursed employee expenses. Turbo tax 2010 2011 Business bad debt of an employee. Turbo tax 2010 2011 Education that is work related. Turbo tax 2010 2011 (See chapter 27. Turbo tax 2010 2011 ) Legal fees related to your job. Turbo tax 2010 2011 Licenses and regulatory fees. Turbo tax 2010 2011 Malpractice insurance premiums. Turbo tax 2010 2011 Medical examinations required by an employer. Turbo tax 2010 2011 Occupational taxes. Turbo tax 2010 2011 Passport for a business trip. Turbo tax 2010 2011 Subscriptions to professional journals and trade magazines related to your work. Turbo tax 2010 2011 Travel, transportation, entertainment, and gifts related to your work. Turbo tax 2010 2011 (See chapter 26. Turbo tax 2010 2011 ) Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. Turbo tax 2010 2011 Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer that are attributable to the pay you received from that employer. Turbo tax 2010 2011 Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. Turbo tax 2010 2011 For more information about the rules and exceptions to the rules affecting the allowable deductions for a home computer, see Publication 529. Turbo tax 2010 2011 Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. Turbo tax 2010 2011 Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Turbo tax 2010 2011 Lobbying and political activities. Turbo tax 2010 2011   You may not be able to deduct that part of your dues that is for certain lobbying and political activities. Turbo tax 2010 2011 See Dues used for lobbying under Nondeductible Expenses, later. Turbo tax 2010 2011 Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. Turbo tax 2010 2011 If you file Form 1040A, you can deduct these expenses on line 16. Turbo tax 2010 2011 If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Turbo tax 2010 2011 However, neither spouse can deduct more than $250 of his or her qualified expenses. Turbo tax 2010 2011 Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. Turbo tax 2010 2011 You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. Turbo tax 2010 2011 The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. Turbo tax 2010 2011 See Publication 587 for more detailed information and a worksheet. Turbo tax 2010 2011 Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. Turbo tax 2010 2011 You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. Turbo tax 2010 2011 Employment and outplacement agency fees. Turbo tax 2010 2011   You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. Turbo tax 2010 2011 Employer pays you back. Turbo tax 2010 2011   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. Turbo tax 2010 2011 (See Recoveries in chapter 12. Turbo tax 2010 2011 ) Employer pays the employment agency. Turbo tax 2010 2011   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. Turbo tax 2010 2011 Résumé. Turbo tax 2010 2011   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. Turbo tax 2010 2011 Travel and transportation expenses. Turbo tax 2010 2011   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. Turbo tax 2010 2011 You can deduct the travel expenses if the trip is primarily to look for a new job. Turbo tax 2010 2011 The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. Turbo tax 2010 2011   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. Turbo tax 2010 2011   You can choose to use the standard mileage rate to figure your car expenses. Turbo tax 2010 2011 The 2013 rate for business use of a vehicle is 56½ cents per mile. Turbo tax 2010 2011 See chapter 26 for more information. Turbo tax 2010 2011 Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. Turbo tax 2010 2011 Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. Turbo tax 2010 2011 If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. Turbo tax 2010 2011 Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. Turbo tax 2010 2011 If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. Turbo tax 2010 2011 Research Expenses of a College Professor If you are a college professor, you can deduct research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. Turbo tax 2010 2011 You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. Turbo tax 2010 2011 However, you cannot deduct the cost of travel as a form of education. Turbo tax 2010 2011 Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. Turbo tax 2010 2011 You can depreciate the cost of tools that have a useful life substantially beyond the tax year. Turbo tax 2010 2011 For more information about depreciation, see Publication 946. Turbo tax 2010 2011 Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. Turbo tax 2010 2011 You can also deduct assessments for benefit payments to unemployed union members. Turbo tax 2010 2011 However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. Turbo tax 2010 2011 Also, you cannot deduct contributions to a pension fund, even if the union requires you to make the contributions. Turbo tax 2010 2011 You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. Turbo tax 2010 2011 See Lobbying Expenses under Nondeductible Expenses, later. Turbo tax 2010 2011 Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. Turbo tax 2010 2011 You must wear them as a condition of your employment. Turbo tax 2010 2011 The clothes are not suitable for everyday wear. Turbo tax 2010 2011 It is not enough that you wear distinctive clothing. Turbo tax 2010 2011 The clothing must be specifically required by your employer. Turbo tax 2010 2011 Nor is it enough that you do not, in fact, wear your work clothes away from work. Turbo tax 2010 2011 The clothing must not be suitable for taking the place of your regular clothing. Turbo tax 2010 2011 Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. Turbo tax 2010 2011 ). Turbo tax 2010 2011 Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. Turbo tax 2010 2011 However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Turbo tax 2010 2011 Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. Turbo tax 2010 2011 Protective clothing. Turbo tax 2010 2011   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. Turbo tax 2010 2011   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. Turbo tax 2010 2011 Military uniforms. Turbo tax 2010 2011   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. Turbo tax 2010 2011 However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. Turbo tax 2010 2011 In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. Turbo tax 2010 2011   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. Turbo tax 2010 2011   You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. Turbo tax 2010 2011 Tax Preparation Fees (Line 22) You can usually deduct tax preparation fees in the year you pay them. Turbo tax 2010 2011 Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. Turbo tax 2010 2011 These fees include the cost of tax preparation software programs and tax publications. Turbo tax 2010 2011 They also include any fee you paid for electronic filing of your return. Turbo tax 2010 2011 Other Expenses (Line 23) You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2% limit. Turbo tax 2010 2011 On Schedule A (Form 1040), line 23, you can deduct expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. Turbo tax 2010 2011 You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes. Turbo tax 2010 2011 Some of these other expenses are explained in the following discussions. Turbo tax 2010 2011 If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses , later, under Nondeductible Expenses. Turbo tax 2010 2011 Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. Turbo tax 2010 2011 Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. Turbo tax 2010 2011 First report the loss in Section B of Form 4684, Casualties and Thefts. Turbo tax 2010 2011 You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Turbo tax 2010 2011 To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Turbo tax 2010 2011 For other casualty and theft losses, see chapter 25. Turbo tax 2010 2011 Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. Turbo tax 2010 2011 Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. Turbo tax 2010 2011 The fees are deductible in the year paid. Turbo tax 2010 2011 Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). Turbo tax 2010 2011 You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. Turbo tax 2010 2011 But if you work as an employee and also use the computer in that work, see Publication 946. Turbo tax 2010 2011 Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. Turbo tax 2010 2011 Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. Turbo tax 2010 2011 The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. Turbo tax 2010 2011 For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. Turbo tax 2010 2011 Fees to Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. Turbo tax 2010 2011 But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. Turbo tax 2010 2011 You must add the fee to the cost of the property. Turbo tax 2010 2011 You cannot deduct the fee you pay to a broker to sell securities. Turbo tax 2010 2011 You can use the fee only to figure gain or loss from the sale. Turbo tax 2010 2011 See the Instructions for Form 8949 for information on how to report the fee. Turbo tax 2010 2011 Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. Turbo tax 2010 2011 A hobby is not a business because it is not carried on to make a profit. Turbo tax 2010 2011 See Activity not for profit in chapter 12 under Other Income. Turbo tax 2010 2011 Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. Turbo tax 2010 2011 Deductions of pass-through entities are passed through to the partners or shareholders. Turbo tax 2010 2011 The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. Turbo tax 2010 2011 Example. Turbo tax 2010 2011 You are a member of an investment club that is formed solely to invest in securities. Turbo tax 2010 2011 The club is treated as a partnership. Turbo tax 2010 2011 The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. Turbo tax 2010 2011 In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. Turbo tax 2010 2011 However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. Turbo tax 2010 2011 Publicly offered mutual funds. Turbo tax 2010 2011   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. Turbo tax 2010 2011 A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. Turbo tax 2010 2011   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). Turbo tax 2010 2011 This net figure is the amount you report on your return as income. Turbo tax 2010 2011 You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. Turbo tax 2010 2011 Information returns. Turbo tax 2010 2011   You should receive information returns from pass-through entities. Turbo tax 2010 2011 Partnerships and S corporations. Turbo tax 2010 2011   These entities issue Schedule K-1, which lists the items and amounts you must report and identifies the tax return schedules and lines to use. Turbo tax 2010 2011 Nonpublicly offered mutual funds. Turbo tax 2010 2011   These funds will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing your share of gross income and investment expenses. Turbo tax 2010 2011 You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. Turbo tax 2010 2011 Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. Turbo tax 2010 2011 Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. Turbo tax 2010 2011 You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce, if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. Turbo tax 2010 2011 You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F), on the appropriate schedule. Turbo tax 2010 2011 You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040). Turbo tax 2010 2011 See Tax Preparation Fees , earlier. Turbo tax 2010 2011 Loss on Deposits For information on whether, and if so, how, you may deduct a loss on your deposit in a qualified financial institution, see Loss on Deposits in chapter 25. Turbo tax 2010 2011 Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. Turbo tax 2010 2011 If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. Turbo tax 2010 2011 If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. Turbo tax 2010 2011 Repayments of Social Security Benefits For information on how to deduct your repayments of certain social security benefits, see Repayments More Than Gross Benefits in chapter 11. Turbo tax 2010 2011 Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. Turbo tax 2010 2011 You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. Turbo tax 2010 2011 Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. Turbo tax 2010 2011 These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. Turbo tax 2010 2011 Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your individual retirement arrangement (IRA) are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. Turbo tax 2010 2011 For more information about IRAs, see chapter 17. Turbo tax 2010 2011 Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. Turbo tax 2010 2011 They are not subject to the 2% limit. Turbo tax 2010 2011 Report these items on Schedule A (Form 1040), line 28. Turbo tax 2010 2011 List of Deductions Each of the following items is discussed in detail after the list (except where indicated). Turbo tax 2010 2011 Amortizable premium on taxable bonds. Turbo tax 2010 2011 Casualty and theft losses from income- producing property. Turbo tax 2010 2011 Federal estate tax on income in respect of a decedent. Turbo tax 2010 2011 Gambling losses up to the amount of gambling winnings. Turbo tax 2010 2011 Impairment-related work expenses of persons with disabilities. Turbo tax 2010 2011 Loss from other activities from Schedule K-1 (Form 1065-B), box 2. Turbo tax 2010 2011 Losses from Ponzi-type investment schemes. Turbo tax 2010 2011 See Losses from Ponzi-type investment schemes under Theft in chapter 25. Turbo tax 2010 2011 Repayments of more than $3,000 under a claim of right. Turbo tax 2010 2011 Unrecovered investment in an annuity. Turbo tax 2010 2011 Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. Turbo tax 2010 2011 You can elect to amortize the premium on taxable bonds. Turbo tax 2010 2011 The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. Turbo tax 2010 2011 Part of the premium on some bonds may be a miscellaneous deduction not subject to the 2% limit. Turbo tax 2010 2011 For more information, see Amortizable Premium on Taxable Bonds in Publication 529, and Bond Premium Amortization in chapter 3 of Publication 550, Investment Income and Expenses. Turbo tax 2010 2011 Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). Turbo tax 2010 2011 First, report the loss in Form 4684, Section B. Turbo tax 2010 2011 You may also have to include the loss on Form 4797, Sales of Business Property if you are otherwise required to file that form. Turbo tax 2010 2011 To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Turbo tax 2010 2011 For more information on casualty and theft losses, see chapter 25. Turbo tax 2010 2011 Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. Turbo tax 2010 2011 Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. Turbo tax 2010 2011 See Publication 559 for more information. Turbo tax 2010 2011 Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. Turbo tax 2010 2011 You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. Turbo tax 2010 2011 You cannot deduct gambling losses that are more than your winnings. Turbo tax 2010 2011 You cannot reduce your gambling winnings by your gambling losses and report the difference. Turbo tax 2010 2011 You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Turbo tax 2010 2011 Therefore, your records should show your winnings separately from your losses. Turbo tax 2010 2011 Diary of winnings and losses. Turbo tax 2010 2011 You must keep an accurate diary or similar record of your losses and winnings. Turbo tax 2010 2011 Your diary should contain at least the following information. Turbo tax 2010 2011 The date and type of your specific wager or wagering activity. Turbo tax 2010 2011 The name and address or location of the gambling establishment. Turbo tax 2010 2011 The names of other persons present with you at the gambling establishment. Turbo tax 2010 2011 The amount(s) you won or lost. Turbo tax 2010 2011 See Publication 529 for more information. Turbo tax 2010 2011 Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. Turbo tax 2010 2011 Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and for other expenses in connection with your place of work that are necessary for you to be able to work. Turbo tax 2010 2011 Self-employed. Turbo tax 2010 2011   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. Turbo tax 2010 2011 Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28. Turbo tax 2010 2011 It is not subject to the passive activity limitations. Turbo tax 2010 2011 Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid or take a credit against your tax. Turbo tax 2010 2011 See Repayments in chapter 12 for more information. Turbo tax 2010 2011 Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. Turbo tax 2010 2011 If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. Turbo tax 2010 2011 See chapter 10 for more information about the tax treatment of pensions and annuities. Turbo tax 2010 2011 Nondeductible Expenses Examples of nondeductible expenses are listed next. Turbo tax 2010 2011 The list is followed by discussions of additional nondeductible expenses. Turbo tax 2010 2011 List of Nondeductible Expenses Broker's commissions that you paid in connection with your IRA or other investment property. Turbo tax 2010 2011 Burial or funeral expenses, including the cost of a cemetery lot. Turbo tax 2010 2011 Capital expenses. Turbo tax 2010 2011 Fees and licenses, such as car licenses, marriage licenses, and dog tags. Turbo tax 2010 2011 Hobby losses, but see Hobby Expenses , earlier. Turbo tax 2010 2011 Home repairs, insurance, and rent. Turbo tax 2010 2011 Illegal bribes and kickbacks. Turbo tax 2010 2011 See Bribes and kickbacks in chapter 11 of Publication 535. Turbo tax 2010 2011 Losses from the sale of your home, furniture, personal car, etc. Turbo tax 2010 2011 Personal disability insurance premiums. Turbo tax 2010 2011 Personal, living, or family expenses. Turbo tax 2010 2011 The value of wages never received or lost vacation time. Turbo tax 2010 2011 Adoption Expenses You cannot deduct the expenses of adopting a child, but you may be able to take a credit for those expenses. Turbo tax 2010 2011 See chapter 37. Turbo tax 2010 2011 Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. Turbo tax 2010 2011 These include qualification and registration fees for primary elections. Turbo tax 2010 2011 Legal fees. Turbo tax 2010 2011   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. Turbo tax 2010 2011 Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. Turbo tax 2010 2011 Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Turbo tax 2010 2011 This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. Turbo tax 2010 2011 You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. Turbo tax 2010 2011 Dues paid to airline, hotel, and luncheon clubs are not deductible. Turbo tax 2010 2011 Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). Turbo tax 2010 2011 If you haul tools, instruments, or other items, in your car to and from work, you can deduct only the additional cost of hauling the items such as the rent on a trailer to carry the items. Turbo tax 2010 2011 Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. Turbo tax 2010 2011 This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Turbo tax 2010 2011 Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. Turbo tax 2010 2011 Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. Turbo tax 2010 2011 Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. Turbo tax 2010 2011 However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. Turbo tax 2010 2011 See Home Office under Unreimbursed Employee Expenses, earlier, and Security System under Deducting Expenses in Publication 587. Turbo tax 2010 2011 Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. Turbo tax 2010 2011 Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. Turbo tax 2010 2011 You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. Turbo tax 2010 2011 See chapter 18 for information on alimony. Turbo tax 2010 2011 Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. Turbo tax 2010 2011 These include expenses to: Influence legislation, Participate or intervene in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. Turbo tax 2010 2011 Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. Turbo tax 2010 2011 Dues used for lobbying. Turbo tax 2010 2011   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. Turbo tax 2010 2011 See Lobbying Expenses in Publication 529 for information on exceptions. Turbo tax 2010 2011 Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. Turbo tax 2010 2011 However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. Turbo tax 2010 2011 See chapter 25. Turbo tax 2010 2011 Example. Turbo tax 2010 2011 A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Turbo tax 2010 2011 The diamond falls from the ring and is never found. Turbo tax 2010 2011 The loss of the diamond is a casualty. Turbo tax 2010 2011 Lunches with Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. Turbo tax 2010 2011 See chapter 26 for information on deductible expenses while traveling away from home. Turbo tax 2010 2011 Meals While Working Late You cannot deduct the cost of meals while working late. Turbo tax 2010 2011 However, you may be able to claim a deduction if the cost of meals is a deductible entertainment expense, or if you are traveling away from home. Turbo tax 2010 2011 See chapter 26 for information on deductible entertainment expenses and expenses while traveling away from home. Turbo tax 2010 2011 Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. Turbo tax 2010 2011 Custody of children. Turbo tax 2010 2011 Breach of promise to marry suit. Turbo tax 2010 2011 Civil or criminal charges resulting from a personal relationship. Turbo tax 2010 2011 Damages for personal injury, except for certain unlawful discrimination and whistleblower claims. Turbo tax 2010 2011 Preparation of a title (or defense or perfection of a title). Turbo tax 2010 2011 Preparation of a will. Turbo tax 2010 2011 Property claims or property settlement in a divorce. Turbo tax 2010 2011 You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. Turbo tax 2010 2011 Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Turbo tax 2010 2011 Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. Turbo tax 2010 2011 Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. Turbo tax 2010 2011 Accounting certificate fees paid for the initial right to practice accounting. Turbo tax 2010 2011 Bar exam fees and incidental expenses in securing initial admission to the bar. Turbo tax 2010 2011 Medical and dental license fees paid to get initial licensing. Turbo tax 2010 2011 Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. Turbo tax 2010 2011 Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. Turbo tax 2010 2011 Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. Turbo tax 2010 2011 Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. Turbo tax 2010 2011 You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. Turbo tax 2010 2011 Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. Turbo tax 2010 2011 You cannot deduct interest on a debt incurred or continued to buy or carry  tax-exempt securities. Turbo tax 2010 2011 If you have expenses to produce both taxable and tax-exempt income, but you cannot identify the expenses that produce each type of income, you must divide the expenses based on the amount of each type of income to determine the amount that you can deduct. Turbo tax 2010 2011 Example. Turbo tax 2010 2011 During the year, you received taxable interest of $4,800 and tax-exempt interest of $1,200. Turbo tax 2010 2011 In earning this income, you had total expenses of $500 during the year. Turbo tax 2010 2011 You cannot identify the amount of each expense item that is for each income item. Turbo tax 2010 2011 Therefore, 80% ($4,800/$6,000) of the expense is for the taxable interest and 20% ($1,200/$6,000) is for the tax-exempt interest. Turbo tax 2010 2011 You can deduct, subject to the 2% limit, expenses of $400 (80% of $500). Turbo tax 2010 2011 Travel Expenses for Another Individual You generally cannot deduct travel expenses you pay or incur for a spouse, dependent, or other individual who accompanies you (or your employee) on business or personal travel unless the spouse, dependent, or other individual is an employee of the taxpayer, the travel is for a bona fide business purpose, and such expenses would otherwise be deductible by the spouse, dependent, or other individual. Turbo tax 2010 2011 See chapter 26 for more information on deductible travel expenses. Turbo tax 2010 2011 Voluntary Unemployment Benefit Fund Contributions You cannot deduct voluntary unemployment benefit fund contributions you make to a union fund or a private fund. Turbo tax 2010 2011 However, you can deduct contributions as taxes if state law requires you to make them to a state unemployment fund that covers you for the loss of wages from unemployment caused by business conditions. Turbo tax 2010 2011 Wristwatches You cannot deduct the cost of a wristwatch, even if there is a job requirement that you know the correct time to properly perform your duties. Turbo tax 2010 2011 Prev  Up  Next   Home   More Online Publications