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| Tax Forms | 2007 Federal Income Tax "The Advantage of Tax Knowledge" | Business Links |
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by Israel Torres, Oct 18, 2007 |
These are the seven expenses that you cannot deduct on your Schedule A (Itemized Deductions). If your saving those receipts for as many deductions as you can get, save them, however, they may not be deductible. |
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We're into the last quarter of the year and soon after the New Year you'll be receiving your W-2 from your employer. Yes it's those dreaded taxes that we have to file every year. If you own a home and you have enough deductions to itemize than you're ready to file a schedule A (Itemized Deductions) with your 1040 Federal Income Tax Forms. |
| We've all heard that saying that states that there are only two things we have to do in life and that is pay taxes and die. And by the way this brings us to the first of our nondeductible expenses. We cannot deduct funeral expenses on Schedule A, and that would be logical because we're dead. However, your widowed spouse cannot deduct your funeral expenses on that Schedule A, either. |
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If during the year your air conditioner were to break down and it cost you $5000.00 to buy a new one or you spent $500.00 on repairs of that old still functioning unit, those repair expenses or that new unit cannot be deducted on your Schedule A. This would only apply to your personal home, because if this was your rental property then there are ways to get some or all of your rental property expenses but not on Schedule A.
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If you decided that your termite infested patio cover had to go and you bought one of those aluminum patio covers this past year, those home improvements are not deductible on that Schedule A for your personal home. Again the tax rules change for a rental property. You go out and buy a new car, stop at the furniture store and buy a new leather couch and a new HDTV to watch the Super Bowl with on Sunday. You also stop at a department store and buy a new side-by-side fridge to keep that beer ice cold for game time. The cost of personal use property such as vehicles, furniture, and appliances cannot be deducted on your Schedule A Itemized Deductions. Any of these items bought for your business use would be deductible on other business expense forms like Schedule C. If you pay homeowners or renter's insurance for the house you own or the house you rent these cannot be deducted on Schedule A.
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Let's look at some other things that are not deductible. If you drive to the lake and pay for a drivers license to be able to drive and pay for a fishing license to be able to fish and of course you take your pet along and he has a license. All license fees mentioned in your little trip are not to be included in itemized deductions. A hunting license and any other license not related to a business are also included in your nondeductible expenses. While on the way to the lake you run a red light and get caught and your fine was $500.00, those fines whether it's speeding, parking tickets, illegal U-turn or any other traffic violation are not deductible on the Schedule A. If you hired a lawyer to fight your traffic violation or to get you out of jail for resisting arrest those expenses are not deductible as Itemized deductions. So this would include almost everything else not mentioned here as being a deductible item.
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| Make sure you hire a licensed tax professional that will give you every possible deduction so that you can get as much of your hard earned money back where it belongs, in your pocket. Happy tax season and I will summarize the seven nondeductible expenses on your Schedule A Itemized Deductions here: |
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