Allan G. Hutchison CPA Ph: (602) 953-6996
Paradise Village Office Park Fax: (602) 953-6993
11811 North Tatum Blvd #P-199 E-mail: alhutch99@aol.com
Phoenix, AZ 85028-1698 Web: www.aghcpa.com
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January 31, 2011
35 Easily Missed Tax Deductions
Dear client(s), associates & friends,
In order to assist you with gathering your 2010 income tax information we have prepared a list of easily missed tax deductions:
1. Tax preparation and accounting fees. CPA fees for IRS audits.
2. Investment fees, financial advisor fees, margin loan interest on investments.
3. Vehicle registration fees. This is the top line on your vehicle registration that is the deductible vehicle license tax (VLT).
4. Medical expenses, dental, prescription drugs and HSA’s are fully deductible on your Arizona tax rtn even though it may not be deductible on your Federal rtn.
5. Sales tax paid on major purchases such as cars, boats, houses, house additions.
6. Interest expense on mortgages ( maximum $1,000,000) on primary and vacation homes. Interest expense home credit lines (HELOC) up to $100,000.
7. Miles driven for work, business, charity or medical purposes.
8. Amounts paid to prepaid tuition programs (529 plans). Arizona allows a tax deduction for money put in prepaid tuition programs.
9. Donations that you make to AZ private & public schools qualifies for an AZ tax credit as well as a deduction on your federal tax return.” MFJ “$1000 & $400 “S” $500 & $200. In addition their is a new military tax credit.
10. Expensing or depreciation of home computers, fax machines, printers, PDA’s or scanners used for work or business.
11. High speed internet charges, internet service provider expenses used for business or investment purposes.
12. Appreciation on property donated to charity.
13. Cell phones and monthly cell charges used for work or business.
14. Clothing, household goods and vehicles donated to charity.
15. Loans that you can’t collect on.
16. Federal interest on bonds, treasury notes and other federal obligations is fully deductible on your Arizona state income tax return. State municipal interest is not taxable on your federal tax returns.
17. Vehicles with GVW over 6000 pounds used for business or work.
18. Self employment tax and self employed medical insurance.
19. Points, origination fee or loan discounts on new mortgages or refinancing of existing mortgages. Even seller paid points are deductible.
20. Medical insurance premiums paid by self employed persons.
21. Safety deposit fees, union dues, work tools, uniforms, etc.
22. Personal property tax on boats, trailers & golf carts.
23. Student loan interest and education costs to colleges.
24. Health savings account deduction (HSA's).
25. Penalty on early withdrawal from savings.
26. Mortgage insurance premiums and alimony paid.
27. Seller paid points on the purchase of a home.
28. Legal fees incurred in connection with obtaining or collecting alimony.
29. Worthless stocks, bonds or securities and stock losses.
30. Travel, convention and seminar expenses.
31. Meals & laundering expenses for business or work travel.
32. Real estate taxes associated with the sale or purchase of property.
33. Commissions and closing costs on the sale of property.
34. Subscriptions to professional journals & magazines.
35. Home office, moving expenses and educator expenses.
If you have any questions regarding the foregoing income tax deductions please contact our office at (602) 953-6996.
Sincerely,
Allan G. Hutchison CPA
AGH/lw enclosures 35 tax ded
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