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2010 Tax Tables

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2010 Tax Tables

2010 tax tables Publication 907 - Introductory Material Table of Contents Future Developments IntroductionOrdering forms and publications. 2010 tax tables Tax questions. 2010 tax tables Future Developments For the latest information about developments related to Publication 907, such as legislation enacted after this publication was published, go to www. 2010 tax tables IRS. 2010 tax tables gov/pub907. 2010 tax tables    Introduction This publication gives you a brief introduction to certain parts of the tax law of particular interest to people with disabilities and those who care for people with disabilities. 2010 tax tables It includes highlights about: Income, Itemized deductions, Tax credits, Household employers, and Business tax incentives. 2010 tax tables You will find most of the information you need to complete your tax return in your form instruction booklet. 2010 tax tables If you need additional information, you may want to order a free tax publication. 2010 tax tables You may also want to take advantage of the other free tax help services that the IRS provides. 2010 tax tables See How To Get Tax Help , at the end of this publication, for information about getting publications, forms, and free tax services. 2010 tax tables Comments and suggestions. 2010 tax tables   We welcome your comments about this publication and your suggestions for future editions. 2010 tax tables   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 2010 tax tables NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 2010 tax tables Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 2010 tax tables   You can send your comments from www. 2010 tax tables irs. 2010 tax tables gov/formspubs/. 2010 tax tables Click on “More Information” and then on “Comment on Tax Forms and Publications”. 2010 tax tables   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 2010 tax tables Ordering forms and publications. 2010 tax tables   Visit www. 2010 tax tables irs. 2010 tax tables gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. 2010 tax tables Internal Revenue Service 1201 N. 2010 tax tables Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 2010 tax tables   If you have a tax question, check the information available on IRS. 2010 tax tables gov or call 1-800-829-1040. 2010 tax tables We cannot answer tax questions sent to either of the above addresses. 2010 tax tables Prev  Up  Next   Home   More Online Publications
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The 2010 Tax Tables

2010 tax tables 28. 2010 tax tables   Miscellaneous Deductions Table of Contents What's New Introduction Useful Items - You may want to see: Deductions Subject to the 2% LimitUnreimbursed Employee Expenses (Line 21) Tax Preparation Fees (Line 22) Other Expenses (Line 23) Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses What's New Standard mileage rate. 2010 tax tables  The 2013 rate for business use of a vehicle is 56½ cents per mile. 2010 tax tables Introduction This chapter explains which expenses you can claim as miscellaneous itemized deductions on Schedule A (Form 1040). 2010 tax tables You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. 2010 tax tables This chapter covers the following topics. 2010 tax tables Deductions subject to the 2% limit. 2010 tax tables Deductions not subject to the 2% limit. 2010 tax tables Expenses you cannot deduct. 2010 tax tables You must keep records to verify your deductions. 2010 tax tables You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. 2010 tax tables For more information on recordkeeping, get Publication 552, Record- keeping for Individuals. 2010 tax tables Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income 529 Miscellaneous Deductions 535 Business Expenses 587 Business Use of Your Home (Including Use by Daycare Providers) 946 How To Depreciate Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040). 2010 tax tables You can claim the amount of expenses that is more than 2% of your adjusted gross income. 2010 tax tables You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. 2010 tax tables Your adjusted gross income is the amount on Form 1040, line 38. 2010 tax tables Generally, you apply the 2% limit after you apply any other deduction limit. 2010 tax tables For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed in chapter 26) before you apply the 2% limit. 2010 tax tables Deductions subject to the 2% limit are discussed in the three categories in which you report them on Schedule A (Form 1040). 2010 tax tables Unreimbursed employee expenses (line 21). 2010 tax tables Tax preparation fees (line 22). 2010 tax tables Other expenses (line 23). 2010 tax tables Unreimbursed Employee Expenses (Line 21) Generally, you can deduct on Schedule A (Form 1040), line 21, unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. 2010 tax tables An expense is ordinary if it is common and accepted in your trade, business, or profession. 2010 tax tables An expense is necessary if it is appropriate and helpful to your business. 2010 tax tables An expense does not have to be required to be considered necessary. 2010 tax tables Examples of unreimbursed employee expenses are listed next. 2010 tax tables The list is followed by discussions of additional unreimbursed employee expenses. 2010 tax tables Business bad debt of an employee. 2010 tax tables Education that is work related. 2010 tax tables (See chapter 27. 2010 tax tables ) Legal fees related to your job. 2010 tax tables Licenses and regulatory fees. 2010 tax tables Malpractice insurance premiums. 2010 tax tables Medical examinations required by an employer. 2010 tax tables Occupational taxes. 2010 tax tables Passport for a business trip. 2010 tax tables Subscriptions to professional journals and trade magazines related to your work. 2010 tax tables Travel, transportation, entertainment, and gifts related to your work. 2010 tax tables (See chapter 26. 2010 tax tables ) Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. 2010 tax tables Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer that are attributable to the pay you received from that employer. 2010 tax tables Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. 2010 tax tables For more information about the rules and exceptions to the rules affecting the allowable deductions for a home computer, see Publication 529. 2010 tax tables Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. 2010 tax tables Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. 2010 tax tables Lobbying and political activities. 2010 tax tables   You may not be able to deduct that part of your dues that is for certain lobbying and political activities. 2010 tax tables See Dues used for lobbying under Nondeductible Expenses, later. 2010 tax tables Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. 2010 tax tables If you file Form 1040A, you can deduct these expenses on line 16. 2010 tax tables If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. 2010 tax tables However, neither spouse can deduct more than $250 of his or her qualified expenses. 2010 tax tables Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. 2010 tax tables You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. 2010 tax tables The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. 2010 tax tables See Publication 587 for more detailed information and a worksheet. 2010 tax tables Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. 2010 tax tables You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. 2010 tax tables Employment and outplacement agency fees. 2010 tax tables   You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. 2010 tax tables Employer pays you back. 2010 tax tables   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. 2010 tax tables (See Recoveries in chapter 12. 2010 tax tables ) Employer pays the employment agency. 2010 tax tables   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. 2010 tax tables Résumé. 2010 tax tables   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. 2010 tax tables Travel and transportation expenses. 2010 tax tables   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. 2010 tax tables You can deduct the travel expenses if the trip is primarily to look for a new job. 2010 tax tables The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. 2010 tax tables   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. 2010 tax tables   You can choose to use the standard mileage rate to figure your car expenses. 2010 tax tables The 2013 rate for business use of a vehicle is 56½ cents per mile. 2010 tax tables See chapter 26 for more information. 2010 tax tables Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. 2010 tax tables Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. 2010 tax tables If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. 2010 tax tables Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. 2010 tax tables If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. 2010 tax tables Research Expenses of a College Professor If you are a college professor, you can deduct research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. 2010 tax tables You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. 2010 tax tables However, you cannot deduct the cost of travel as a form of education. 2010 tax tables Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. 2010 tax tables You can depreciate the cost of tools that have a useful life substantially beyond the tax year. 2010 tax tables For more information about depreciation, see Publication 946. 2010 tax tables Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. 2010 tax tables You can also deduct assessments for benefit payments to unemployed union members. 2010 tax tables However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. 2010 tax tables Also, you cannot deduct contributions to a pension fund, even if the union requires you to make the contributions. 2010 tax tables You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. 2010 tax tables See Lobbying Expenses under Nondeductible Expenses, later. 2010 tax tables Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. 2010 tax tables You must wear them as a condition of your employment. 2010 tax tables The clothes are not suitable for everyday wear. 2010 tax tables It is not enough that you wear distinctive clothing. 2010 tax tables The clothing must be specifically required by your employer. 2010 tax tables Nor is it enough that you do not, in fact, wear your work clothes away from work. 2010 tax tables The clothing must not be suitable for taking the place of your regular clothing. 2010 tax tables Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. 2010 tax tables ). 2010 tax tables Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. 2010 tax tables However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. 2010 tax tables Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. 2010 tax tables Protective clothing. 2010 tax tables   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. 2010 tax tables   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. 2010 tax tables Military uniforms. 2010 tax tables   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. 2010 tax tables However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. 2010 tax tables In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. 2010 tax tables   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. 2010 tax tables   You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. 2010 tax tables Tax Preparation Fees (Line 22) You can usually deduct tax preparation fees in the year you pay them. 2010 tax tables Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. 2010 tax tables These fees include the cost of tax preparation software programs and tax publications. 2010 tax tables They also include any fee you paid for electronic filing of your return. 2010 tax tables Other Expenses (Line 23) You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2% limit. 2010 tax tables On Schedule A (Form 1040), line 23, you can deduct expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. 2010 tax tables You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes. 2010 tax tables Some of these other expenses are explained in the following discussions. 2010 tax tables If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses , later, under Nondeductible Expenses. 2010 tax tables Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. 2010 tax tables Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. 2010 tax tables First report the loss in Section B of Form 4684, Casualties and Thefts. 2010 tax tables You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. 2010 tax tables To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. 2010 tax tables For other casualty and theft losses, see chapter 25. 2010 tax tables Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. 2010 tax tables Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. 2010 tax tables The fees are deductible in the year paid. 2010 tax tables Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). 2010 tax tables You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. 2010 tax tables But if you work as an employee and also use the computer in that work, see Publication 946. 2010 tax tables Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. 2010 tax tables Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. 2010 tax tables The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. 2010 tax tables For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. 2010 tax tables Fees to Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. 2010 tax tables But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. 2010 tax tables You must add the fee to the cost of the property. 2010 tax tables You cannot deduct the fee you pay to a broker to sell securities. 2010 tax tables You can use the fee only to figure gain or loss from the sale. 2010 tax tables See the Instructions for Form 8949 for information on how to report the fee. 2010 tax tables Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. 2010 tax tables A hobby is not a business because it is not carried on to make a profit. 2010 tax tables See Activity not for profit in chapter 12 under Other Income. 2010 tax tables Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. 2010 tax tables Deductions of pass-through entities are passed through to the partners or shareholders. 2010 tax tables The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. 2010 tax tables Example. 2010 tax tables You are a member of an investment club that is formed solely to invest in securities. 2010 tax tables The club is treated as a partnership. 2010 tax tables The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. 2010 tax tables In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. 2010 tax tables However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. 2010 tax tables Publicly offered mutual funds. 2010 tax tables   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. 2010 tax tables A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. 2010 tax tables   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). 2010 tax tables This net figure is the amount you report on your return as income. 2010 tax tables You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. 2010 tax tables Information returns. 2010 tax tables   You should receive information returns from pass-through entities. 2010 tax tables Partnerships and S corporations. 2010 tax tables   These entities issue Schedule K-1, which lists the items and amounts you must report and identifies the tax return schedules and lines to use. 2010 tax tables Nonpublicly offered mutual funds. 2010 tax tables   These funds will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing your share of gross income and investment expenses. 2010 tax tables You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. 2010 tax tables Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. 2010 tax tables Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. 2010 tax tables You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce, if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. 2010 tax tables You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F), on the appropriate schedule. 2010 tax tables You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040). 2010 tax tables See Tax Preparation Fees , earlier. 2010 tax tables Loss on Deposits For information on whether, and if so, how, you may deduct a loss on your deposit in a qualified financial institution, see Loss on Deposits in chapter 25. 2010 tax tables Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. 2010 tax tables If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. 2010 tax tables If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. 2010 tax tables Repayments of Social Security Benefits For information on how to deduct your repayments of certain social security benefits, see Repayments More Than Gross Benefits in chapter 11. 2010 tax tables Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. 2010 tax tables You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. 2010 tax tables Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. 2010 tax tables These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. 2010 tax tables Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your individual retirement arrangement (IRA) are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. 2010 tax tables For more information about IRAs, see chapter 17. 2010 tax tables Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. 2010 tax tables They are not subject to the 2% limit. 2010 tax tables Report these items on Schedule A (Form 1040), line 28. 2010 tax tables List of Deductions Each of the following items is discussed in detail after the list (except where indicated). 2010 tax tables Amortizable premium on taxable bonds. 2010 tax tables Casualty and theft losses from income- producing property. 2010 tax tables Federal estate tax on income in respect of a decedent. 2010 tax tables Gambling losses up to the amount of gambling winnings. 2010 tax tables Impairment-related work expenses of persons with disabilities. 2010 tax tables Loss from other activities from Schedule K-1 (Form 1065-B), box 2. 2010 tax tables Losses from Ponzi-type investment schemes. 2010 tax tables See Losses from Ponzi-type investment schemes under Theft in chapter 25. 2010 tax tables Repayments of more than $3,000 under a claim of right. 2010 tax tables Unrecovered investment in an annuity. 2010 tax tables Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. 2010 tax tables You can elect to amortize the premium on taxable bonds. 2010 tax tables The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. 2010 tax tables Part of the premium on some bonds may be a miscellaneous deduction not subject to the 2% limit. 2010 tax tables For more information, see Amortizable Premium on Taxable Bonds in Publication 529, and Bond Premium Amortization in chapter 3 of Publication 550, Investment Income and Expenses. 2010 tax tables Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). 2010 tax tables First, report the loss in Form 4684, Section B. 2010 tax tables You may also have to include the loss on Form 4797, Sales of Business Property if you are otherwise required to file that form. 2010 tax tables To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. 2010 tax tables For more information on casualty and theft losses, see chapter 25. 2010 tax tables Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. 2010 tax tables Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. 2010 tax tables See Publication 559 for more information. 2010 tax tables Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. 2010 tax tables You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. 2010 tax tables You cannot deduct gambling losses that are more than your winnings. 2010 tax tables You cannot reduce your gambling winnings by your gambling losses and report the difference. 2010 tax tables You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. 2010 tax tables Therefore, your records should show your winnings separately from your losses. 2010 tax tables Diary of winnings and losses. 2010 tax tables You must keep an accurate diary or similar record of your losses and winnings. 2010 tax tables Your diary should contain at least the following information. 2010 tax tables The date and type of your specific wager or wagering activity. 2010 tax tables The name and address or location of the gambling establishment. 2010 tax tables The names of other persons present with you at the gambling establishment. 2010 tax tables The amount(s) you won or lost. 2010 tax tables See Publication 529 for more information. 2010 tax tables Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. 2010 tax tables Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and for other expenses in connection with your place of work that are necessary for you to be able to work. 2010 tax tables Self-employed. 2010 tax tables   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. 2010 tax tables Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28. 2010 tax tables It is not subject to the passive activity limitations. 2010 tax tables Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid or take a credit against your tax. 2010 tax tables See Repayments in chapter 12 for more information. 2010 tax tables Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. 2010 tax tables If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. 2010 tax tables See chapter 10 for more information about the tax treatment of pensions and annuities. 2010 tax tables Nondeductible Expenses Examples of nondeductible expenses are listed next. 2010 tax tables The list is followed by discussions of additional nondeductible expenses. 2010 tax tables List of Nondeductible Expenses Broker's commissions that you paid in connection with your IRA or other investment property. 2010 tax tables Burial or funeral expenses, including the cost of a cemetery lot. 2010 tax tables Capital expenses. 2010 tax tables Fees and licenses, such as car licenses, marriage licenses, and dog tags. 2010 tax tables Hobby losses, but see Hobby Expenses , earlier. 2010 tax tables Home repairs, insurance, and rent. 2010 tax tables Illegal bribes and kickbacks. 2010 tax tables See Bribes and kickbacks in chapter 11 of Publication 535. 2010 tax tables Losses from the sale of your home, furniture, personal car, etc. 2010 tax tables Personal disability insurance premiums. 2010 tax tables Personal, living, or family expenses. 2010 tax tables The value of wages never received or lost vacation time. 2010 tax tables Adoption Expenses You cannot deduct the expenses of adopting a child, but you may be able to take a credit for those expenses. 2010 tax tables See chapter 37. 2010 tax tables Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. 2010 tax tables These include qualification and registration fees for primary elections. 2010 tax tables Legal fees. 2010 tax tables   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. 2010 tax tables Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. 2010 tax tables Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. 2010 tax tables This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. 2010 tax tables You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. 2010 tax tables Dues paid to airline, hotel, and luncheon clubs are not deductible. 2010 tax tables Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). 2010 tax tables If you haul tools, instruments, or other items, in your car to and from work, you can deduct only the additional cost of hauling the items such as the rent on a trailer to carry the items. 2010 tax tables Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. 2010 tax tables This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). 2010 tax tables Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. 2010 tax tables Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. 2010 tax tables Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. 2010 tax tables However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. 2010 tax tables See Home Office under Unreimbursed Employee Expenses, earlier, and Security System under Deducting Expenses in Publication 587. 2010 tax tables Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. 2010 tax tables Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. 2010 tax tables You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. 2010 tax tables See chapter 18 for information on alimony. 2010 tax tables Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. 2010 tax tables These include expenses to: Influence legislation, Participate or intervene in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. 2010 tax tables Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. 2010 tax tables Dues used for lobbying. 2010 tax tables   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. 2010 tax tables See Lobbying Expenses in Publication 529 for information on exceptions. 2010 tax tables Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. 2010 tax tables However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. 2010 tax tables See chapter 25. 2010 tax tables Example. 2010 tax tables A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. 2010 tax tables The diamond falls from the ring and is never found. 2010 tax tables The loss of the diamond is a casualty. 2010 tax tables Lunches with Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. 2010 tax tables See chapter 26 for information on deductible expenses while traveling away from home. 2010 tax tables Meals While Working Late You cannot deduct the cost of meals while working late. 2010 tax tables However, you may be able to claim a deduction if the cost of meals is a deductible entertainment expense, or if you are traveling away from home. 2010 tax tables See chapter 26 for information on deductible entertainment expenses and expenses while traveling away from home. 2010 tax tables Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. 2010 tax tables Custody of children. 2010 tax tables Breach of promise to marry suit. 2010 tax tables Civil or criminal charges resulting from a personal relationship. 2010 tax tables Damages for personal injury, except for certain unlawful discrimination and whistleblower claims. 2010 tax tables Preparation of a title (or defense or perfection of a title). 2010 tax tables Preparation of a will. 2010 tax tables Property claims or property settlement in a divorce. 2010 tax tables You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. 2010 tax tables Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. 2010 tax tables Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. 2010 tax tables Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. 2010 tax tables Accounting certificate fees paid for the initial right to practice accounting. 2010 tax tables Bar exam fees and incidental expenses in securing initial admission to the bar. 2010 tax tables Medical and dental license fees paid to get initial licensing. 2010 tax tables Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. 2010 tax tables Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. 2010 tax tables Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. 2010 tax tables Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. 2010 tax tables You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. 2010 tax tables Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. 2010 tax tables You cannot deduct interest on a debt incurred or continued to buy or carry  tax-exempt securities. 2010 tax tables If you have expenses to produce both taxable and tax-exempt income, but you cannot identify the expenses that produce each type of income, you must divide the expenses based on the amount of each type of income to determine the amount that you can deduct. 2010 tax tables Example. 2010 tax tables During the year, you received taxable interest of $4,800 and tax-exempt interest of $1,200. 2010 tax tables In earning this income, you had total expenses of $500 during the year. 2010 tax tables You cannot identify the amount of each expense item that is for each income item. 2010 tax tables Therefore, 80% ($4,800/$6,000) of the expense is for the taxable interest and 20% ($1,200/$6,000) is for the tax-exempt interest. 2010 tax tables You can deduct, subject to the 2% limit, expenses of $400 (80% of $500). 2010 tax tables Travel Expenses for Another Individual You generally cannot deduct travel expenses you pay or incur for a spouse, dependent, or other individual who accompanies you (or your employee) on business or personal travel unless the spouse, dependent, or other individual is an employee of the taxpayer, the travel is for a bona fide business purpose, and such expenses would otherwise be deductible by the spouse, dependent, or other individual. 2010 tax tables See chapter 26 for more information on deductible travel expenses. 2010 tax tables Voluntary Unemployment Benefit Fund Contributions You cannot deduct voluntary unemployment benefit fund contributions you make to a union fund or a private fund. 2010 tax tables However, you can deduct contributions as taxes if state law requires you to make them to a state unemployment fund that covers you for the loss of wages from unemployment caused by business conditions. 2010 tax tables Wristwatches You cannot deduct the cost of a wristwatch, even if there is a job requirement that you know the correct time to properly perform your duties. 2010 tax tables Prev  Up  Next   Home   More Online Publications