3 Deductions You May be Forgetting
Tax time can be stressful for a lot of us. But you have to put the stress aside and ensure you can take maximum advantage of the deductions IRS offers. Below are the three deductions that you are most likely to forget when itemizing your taxes this year. If you are unsure, give us a call.
Home Office Deduction:
If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. The home office deduction is available for homeowners and renters, and applies to all types of homes, from apartments to mobile homes. There are two basic requirements for your home to qualify as a deduction:
1. Regular and Exclusive Use
2. Principal Place of Business
Additional tests for employee use. If you are an employee and you use a part of your home for business, you may qualify for a deduction for its business use. You must meet the tests discussed above plus:
1. Your business use must be for the convenience of your employer, and
2. You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer.
Non-cash Charitable Contributions:
Donated any clothing, household goods, old shoes, etc. in one of those street side drop boxes? You may be able to claim it as a non-cash charitable deduction if you itemize your taxes. Charitable contributions is one of the few itemized deductions that give you a direct benefit in reducing your taxable income.
Auto expenses:
If you work at two places in a day, whether or not for the same employer, you can generally deduct the expenses of getting from one workplace to the other. If you travel to a client site or an alternative office location from your primary office location, then you may be able to take a deduction related to the use of your car. Provided your employer doesn't reimburse you and you itemize your taxes.
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