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Unformatted text preview: n 2009
and $.19 per mile (Jan-Jun) and $.27 (Jul-Dec) in 2008.
and x Lodging costs (but not meals) up to $50 per day are deductible for the TP and one additional person if an
overnight stay is necessary.
W, who lives in Denver, takes her child to Rochester, NY for
medical treatment. The transportation cost for both persons
and up to $50 per night for each individual is deductible.
x Distinguish between a user fee and a tax
y User fee examples:
x Driver’s licenses & hunting licenses
x Vehicle registration based on weight
x Street improvements billed to property owners y Tax: Usually a payor does not get benefits in
proportion to the amount paid
12 Deductible Taxes for Individuals
x State, local, and foreign income taxes may be
State, deducted (or claimed as a credit)
deducted NOTE: Federal income taxes, including Social Security
taxes, are not deductible by individuals
taxes, x State, local, and foreign real property taxes
x State and local personal property taxes, if based on
value x Sales taxes (in lieu of State/Local income taxes
Sales extended thru December 31, 2009)
extended x Excise and Transfer taxes are N/D
13 Apportionment of Real Estate
Taxes Between Buyer & Seller
-When real estate is sold, apportion real estate
taxes between buyer and seller based on the
number of days each taxpayer held ownership
The apportionment typically occurs at settlement
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- Spring '11