AC 750 Chapter 6

AC 750 Chapter 6 - Chapter 6 Deductions Deductions...

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Deductions Chapter 6
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AC 750 - Chapter 6 Deductions Particular expenses, losses and other items for which a  deduction is authorized. Nothing is deductible unless it is authorized by the code! Type s  o f de duc tio ns : § 162 – tra de  o r b us ine s s  e xpe ns e s  (fo r AG I) § 212 – e xpe ns e s  o f pro duc ing  inc o m e   (fo r/fro m  AG I) § 165 – lo s s e s  (fo r AG I) O the r – pe rs o na l de duc tio ns  (fo r/fro m  AG I)
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AC 750 - Chapter 6 Mo ving  Expe ns e s Deductible if: 1. Distance Test  – the  dis ta nc e  b e twe e n the  o ld  re s ide nc e   a nd the  ne w jo b  s ite  is  a t le a s t fifty m ile s  G REATER  tha n the  dis ta nc e  b e twe e n the e  o ld re s ide nc e  a nd o ld  jo b  s ite 2.  Time Test  - e m plo ye e  wo rks  full-tim e  fo r a t le a s t 39 we e ks  o f the  12 m o nths  im m e dia te ly fo llo wing  the  m o ve   (78 we e ks  o ut o f 24 m o nths  if s e lf-e m plo ye d). Wha t’s  de duc tib le ?   No :   ho us e  hunting , m e a ls , te m po ra ry living   a rra ng e m e nts               C o s t o f a  ne w re s ide nc e ALWAYS  De duc tib le  FO R  AG I
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AC 750 - Chapter 6 Education Expense Deduction For AGI Taxpayers can deduct up to $4,000 in qualified tuition expenses “ for  AGI Does not have to be employment related Phased-out from high-income taxpayers
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AC 750 Chapter 6 - Chapter 6 Deductions Deductions...

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