Schedule A: All Deductions Excluding Medical Expenses

State and Local Income Taxes – Taxpayers who choose to deduct state and local sales taxes can deduct either:

1)      Actual sales tax amount (based on their records)

2)      Predetermined deduction figures from IRS tables

Real Estate Taxes ­– Real estate taxes are deductible for all property owned by a taxpayer.

Personal Property Taxes – Personal property taxes are deductible if they are a state or local tax:

1)      Charged on personal property

2)      Based only on the value of the personal property

3)      Charged on a yearly basis.

Example: Automobile license fees.

Interest Expense

1)      Business interest

2)      Capitalized interest

3)      Student loan interest

4)      Investment interest

5)      Mortgage interest

6)      Passive activity interest

Charitable Contributions

Includes money given to:

1)      Churches, synagogues, temples, mosques and other religious organizations

2)      Federal, state and local governments, if contribution is solely for public purchases

3)      Nonprofit schools, hospitals and volunteer fire companies

4)      Public parks and recreation facilities

5)      Public charities such as Salvation Army, Red Cross, CARE, Goodwill Industries, United Way, Boy/Girl Scouts, Boys/Girls Clubs of America, etc.

6)      War veterans’ group

Charitable travel $0.14 per mile

Casualty and Theft Losses – A casualty is the damage, destruction or loss of property resulting from an identifiable event that is sudden, unexpected or unusual.

1)      Car accidents

2)      Earthquakes

3)      Fires, Floods, Hurricanes, Tornadoes, Volcanic Eruptions

4)      Mine cave-ins

5)      Shipwrecks

6)      Thefts

Miscellaneous Itemized Deductions

Fully Deductible:

1)      Amortizable premium on taxable bonds

2)      Casualty and theft losses from income-producing property

3)      Estate taxes imposed on taxable income

4)      Gambling losses

5)      Repayment of income of more than $3,000

6)      Special job-related expenses of the handicapped

7)      Unrecovered cost of annuities

Subject to 2%-of-AGI floor:

1)      Appraisal fees (for charitable donation or casualty losses)

2)      Clerical help and office rent for maintaining investments

3)      Credit card convenience fee for paying income tax by credit or debit card

4)      Employee business expense, including travel, 50% of meals and entertainment, supplies, small tools, professional books and journals, home office deductions, and depreciation on property used for business

5)      Excess deductions allowed a beneficiary on termination of an estate or trust

6)      Fees to collect interest or dividends

7)      Hobby expenses, up to the amount of hobby income

8)      Indirect miscellaneous of pass-through entities

9)      Investment expenses

10)   IRA, SEP, SIMPLE or self-employed qualified plan custodial fees paid with funds outside the account

11)   Job-hunting expenses

12)   Job-related education expenses

13)   Legal fees for collecting or producing taxable income, keeping a job or obtaining tax advice.  Legal fees in a voluntary bankruptcy to the extent attributable to the taxpayer’s business

14)   Liquidated damages paid to a former employer for breach of employment contract

15)   Loss on deposits in an insolvent or bankrupt financial institution

16)   Losses on IRA invesments when all amounts in all IRAs have been distributed and total distributions are less than unrecovered basis, if any.

17)   Medical examinations required by employer.

18)   Professional and union dues

19)   Research expenses of a college professor

20)   Safe deposit box fees or cost of installing a safe in a home

21)   Service charges on dividend reinvestment plans

22)   Tax preparation expenses

23)   Trust administration fees

24)   Undeveloped land management expenses

25)   Work clothes and uniforms if required and not suitable for street wear.