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Tax
Time: Some Commonly Missed Deductions
by
Scott W. Danger, CPA
April 15th
is just around the corner. If you are like most people, you have
been putting off the task of filing your taxes. Don’t feel bad. I
haven’t got mine done either. But, since most of us are
procrastinators, maybe you can use a few of the following commonly
overlooked deductions when you sit down and prepare your taxes. First though, I must add that these may
or may not be applicable to everyone. The circumstances of your
situation will determine whether or not you qualify.
1. Points
paid on a home mortgage
If you pay
points to a lender in the course of financing your principal
residence, the points may be fully deductible in the year in which
they are paid. The key is that the points you paid were to obtain a
lower interest rate on the loan. There are other tests which must be
met in order to fully deduct the points but generally, if the loan
was made by an established lender and the payment of points is an
established business practice in your area, they are fully
deductible on Schedule A.
2. Out-of-pocket
expenses related to charitable activities
If you have
unreimbursed expenses related to amounts you paid in giving services
to a qualified organization, you may be able to deduct them. Items
which may be deductible include meals, travel and even the cost of a
uniform if it is not suitable for everyday use. You can deduct the
actual cost of using your car or deduct a standard rate of 14 cents
per mile. Examples of deductible expenses would be mileage to
deliver meals to the elderly, expenses related to being a scout
leader or attending a charitable organizations regional meeting as
their representative. These expenses are deducted on Schedule A.
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