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2010 CCH Comp Topics Ch06 - Chapter 6 Click to edit Master...

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Click to edit Master subtitle style CCH Federal Taxation Comprehensive Topics Chapter 6 Deductions: General Concepts and Trade or Business Deductions ©2009 CCH. All Rights Reserved. 4025 W. Peterson Ave. Chicago, IL 60646-6085 1 800 248 3248 www.CCHGroup.com
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CCH Federal Taxation Comprehensive Topics 22 of 43 1. Classification of Deductions 2. Classification: “ For ” vs. “ From ” AGI 3. Trade or Business Expenses 4. Production of Income Deductions 5. Deductions for Losses 6. Other Allowable Deductions “ For ” AGI 7. Business Investigation and Start-Up Expenses 8. Deductibility of Business Investigation and Start-Up Expenses 9. Job Seeking Expenses Chapter 6, Exhibit Contents A Chapter 6 Exhibits
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CCH Federal Taxation Comprehensive Topics 33 of 43 10. Business Gifts 11. Travel & Transportation Expenses 12. Moving Expenses 13. Student Loan Interest—Qualified Education Expenses 14. Student Loan Interest 15. Qualified Education Expenses Deduction 16. Health Insurance, HSAs, MSAs 17. Employee Business-Related Expenses 18. Employee v. Self-Employed 19. Limitations on the Deductibility of Expenses and Losses Chapter 6, Exhibit Contents B Chapter 6 Exhibits
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CCH Federal Taxation Comprehensive Topics 44 of 43 20. Other Limitations on the Deductibility of Expenses and Losses 21. Business Deductions Related to Capital Expenditures 22. Depreciation of Tangible Property 23. MACRS Depreciation of Tangible Property 24. Limitations on Depreciation of Automobiles 25. Depreciation Code Sec. 179 Election 26. Amortization 27. Research and Experimental (R & E) 28. Depletion Chapter 6, Exhibit Contents C Chapter 6 Exhibits
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CCH Federal Taxation Comprehensive Topics 55 of 43 Classification of Deductions There are 4 categories of tax deductions allowed to individual taxpayers. 1. Trade or business deductions are generally deductible FOR AGI. 2. Deductions incurred for the production of income are generally deductible FROM AGI as miscellaneous itemized deductions subject to the 2% floor. 3. Deductions for losses incurred on the sale of business or investment assets are generally deductible FOR AGI (though they may be subject to capital loss limitation). 4. Personal expenses are generally NOT deductible unless expressly permitted. Allowable personal deductions, such as medical expenses, are deductible as itemized deductions, subject to various limitations. Chapter 6, Exhibit 1
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CCH Federal Taxation Comprehensive Topics 66 of 43 Classification: “ For ” vs. “ From ” AGI n Deductions “for” AGI are subtracted from income in calculating adjusted gross income u These deductions often reduce earned income subject to self- employment taxes as well u In addition, state income taxes are often based on federal AGI u Many tax benefits are available only for taxpayers whose AGIs do not exceed specified levels (e.g., ability to contribute to Roth IRA, ability to deduct student loan interest, etc.) n Deductions “from” AGI are subtracted from AGI itself in computing taxable income u This category of deductions is generally allowed as an alternative to the standard deduction u
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