I Always Thought I Could Deduct That

I always thought I could deduct that!

A growing number of calls are coming into my office daily for audit representation. Taxpayers want to get the best return possible, however many have received incorrect advice. Sadly many times I have to be the bearer of bad news and tell taxpayers that these expenses will not allowed. Below is a listing on common deductions that are NOT allowed.  

Miscellaneous Expenses

• Clothing that is adaptable to everyday use
• Commuting costs
• Contributions to non-US charities
• Dry cleaning and laundry
• Dues to country clubs, athletic clubs, airline clubs, and hotel clubs
• Expenses that were reimbursed by your employer
• Grooming
• Gym membership
• Interest on personal loans
• Job search expenses not for your current profession
• Lunch while at work
• Moving expenses not associated with your job
• Student loan principal

Home Expenses

• Depreciation
• Home phone line
• Homeowner’s association fees
• Insurance
• Mortgage principal payments
• Utilities
• Wages to a housekeeper

Taxes and Fees   

• Employment taxes
• Estate, inheritance, legacy, or succession taxes
• Federal income taxes
• Fees for taking an exams to qualify you in a profession
• Fines and penalties paid to a government for violation of any law
• Gift taxes