美国税法 2010 Deductions and Losses In General.pptVIP

Chapter 6 Deductions and Losses: In General Deductions Exclusive definition of deductions Deductions are allowed based on legislative grace and defined narrowly Substantiation requirements Taxpayer has burden of proof for substantiating all expenses deducted on return Thus, adequate records of expenses must be maintained Deductions for and from AGI (slide 1 of 3) Deductions for AGI Can be claimed even if taxpayer does not itemize Important in determining the amount of certain itemized deductions Certain itemized deductions are limited to amounts in excess of specified percentages of AGI e.g., Medial expenses (7.5% of AGI), misc. itemized deductions ( 2% of AGI) Deductions for and from AGI (slide 2 of 3) Deductions from AGI: In total, must exceed the standard deduction to provide any tax benefit Called “below the line” or itemized deductions Deductions for and from AGI (slide 3 of 3) Comparison of deductions for and from AGI (2009 tax year) Single taxpayer has gross income of $45,000 and a $6,000 deduction For AGI From AGI Gross income $45,000 $45,000 Less: for AGI ded. 6,000 0 AGI $39,000 $45,000 Less: from AGI ded. 5,700 6,000 Less: personal exempt. 3,650 3,650 Taxable income $29,650 $35,350 Deductions for AGI (slide 1 of 3) Partial list includes: Trade or business expenses Reimbursed employee business expenses Deductions from losses on sale or exchange of property Deductions from rental and royalty property Alimony One-half of self-employment tax paid Deductions for AGI (slide 2 of 3) Partial list includes: 100% of health insurance premiums paid by a self-employed individual Contributions to pension, profit sharing, annuity plans, IRAs, etc. Penalty on premature withdrawals from time savings accounts or deposits Moving expenses Deductions for AGI (slide 3 of 3) Partial list includes: Interest on student loans Qualified tuition and related e