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H&r Block Military Discount

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H&r Block Military Discount

H&r block military discount Publication 529 - Main Content Table of Contents Deductions Subject to the 2% LimitUnreimbursed Employee Expenses Tax Preparation Fees Other Expenses Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses How To ReportWho can use Form 2106-EZ. H&r block military discount Computer used in a home office. H&r block military discount Example How To Get Tax HelpLow Income Taxpayer Clinics Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040 or Form 1040NR). H&r block military discount You can claim the amount of expenses that is more than 2% of your adjusted gross income. H&r block military discount You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. H&r block military discount Your adjusted gross income is the amount on Form 1040, line 38, or Form 1040NR, line 37. H&r block military discount Generally, you apply the 2% limit after you apply any other deduction limit. H&r block military discount For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed later under Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging ) before you apply the 2% limit. H&r block military discount Deductions subject to the 2% limit are discussed in the following three categories. H&r block military discount Unreimbursed employee expenses (Schedule A (Form 1040), line 21 or Schedule A (Form 1040NR), line 7). H&r block military discount Tax preparation fees (Schedule A (Form 1040), line 22 or Schedule A (Form 1040NR), line 8). H&r block military discount Other expenses (Schedule A (Form 1040), line 23 or Schedule A (Form 1040NR), line 9). H&r block military discount Unreimbursed Employee Expenses Generally, the following expenses are deducted on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. H&r block military discount You can deduct only unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. H&r block military discount An expense is ordinary if it is common and accepted in your trade, business, or profession. H&r block military discount An expense is necessary if it is appropriate and helpful to your business. H&r block military discount An expense does not have to be required to be considered necessary. H&r block military discount You may be able to deduct the following items as unreimbursed employee expenses. H&r block military discount Business bad debt of an employee. H&r block military discount Business liability insurance premiums. H&r block military discount Damages paid to a former employer for breach of an employment contract. H&r block military discount Depreciation on a computer your employer requires you to use in your work. H&r block military discount Dues to a chamber of commerce if membership helps you do your job. H&r block military discount Dues to professional societies. H&r block military discount Educator expenses. H&r block military discount Home office or part of your home used regularly and exclusively in your work. H&r block military discount Job search expenses in your present occupation. H&r block military discount Laboratory breakage fees. H&r block military discount Legal fees related to your job. H&r block military discount Licenses and regulatory fees. H&r block military discount Malpractice insurance premiums. H&r block military discount Medical examinations required by an employer. H&r block military discount Occupational taxes. H&r block military discount Passport for a business trip. H&r block military discount Repayment of an income aid payment received under an employer's plan. H&r block military discount Research expenses of a college professor. H&r block military discount Rural mail carriers' vehicle expenses. H&r block military discount Subscriptions to professional journals and trade magazines related to your work. H&r block military discount Tools and supplies used in your work. H&r block military discount Travel, transportation, meals, entertainment, gifts, and local lodging related to your work. H&r block military discount Union dues and expenses. H&r block military discount Work clothes and uniforms if required and not suitable for everyday use. H&r block military discount Work-related education. H&r block military discount Business Bad Debt A business bad debt is a loss from a debt created or acquired in your trade or business. H&r block military discount Any other worthless debt is a business bad debt only if there is a very close relationship between the debt and your trade or business when the debt becomes worthless. H&r block military discount A debt has a very close relationship to your trade or business of being an employee if your main motive for incurring the debt is a business reason. H&r block military discount Example. H&r block military discount You make a bona fide loan to the corporation you work for. H&r block military discount It fails to pay you back. H&r block military discount You had to make the loan in order to keep your job. H&r block military discount You have a business bad debt as an employee. H&r block military discount More information. H&r block military discount   For more information on business bad debts, see chapter 10 in Publication 535. H&r block military discount For information on nonbusiness bad debts, see chapter 4 in Publication 550, Investment Income and Expenses. H&r block military discount Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. H&r block military discount Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer if the damages are attributable to the pay you received from that employer. H&r block military discount Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. H&r block military discount For the convenience of your employer. H&r block military discount   This means that your use of the computer is for a substantial business reason of your employer. H&r block military discount You must consider all facts in making this determination. H&r block military discount Use of your computer during your regular working hours to carry on your employer's business is generally for the convenience of your employer. H&r block military discount Required as a condition of your employment. H&r block military discount   This means that you cannot properly perform your duties without the computer. H&r block military discount Whether you can properly perform your duties without it depends on all the facts and circumstances. H&r block military discount It is not necessary that your employer explicitly requires you to use your computer. H&r block military discount But neither is it enough that your employer merely states that your use of the item is a condition of your employment. H&r block military discount Example. H&r block military discount You are an engineer with an engineering firm. H&r block military discount You occasionally take work home at night rather than work late at the office. H&r block military discount You own and use a computer that is similar to the one you use at the office to complete your work at home. H&r block military discount Since your use of the computer is not for the convenience of your employer and is not required as a condition of your employment, you cannot claim a depreciation deduction for it. H&r block military discount Which depreciation method to use. H&r block military discount   The depreciation method you use depends on whether you meet the more-than-50%-use test. H&r block military discount More-than-50%-use test met. H&r block military discount   You meet this test if you use the computer more than 50% in your work. H&r block military discount If you meet this test, you can claim accelerated depreciation under the General Depreciation System (GDS). H&r block military discount In addition, you may be able to take the section 179 deduction for the year you place the item in service. H&r block military discount More-than-50%-use test not met. H&r block military discount   If you do not meet the more-than-50%-use test, you are limited to the straight line method of depreciation under the Alternative Depreciation System (ADS). H&r block military discount You also cannot claim the section 179 deduction. H&r block military discount (But if you use your computer in a home office, see the exception below. H&r block military discount ) Investment use. H&r block military discount   Your use of a computer in connection with investments (described later under Other Expenses ) does not count as use in your work. H&r block military discount However, you can combine your investment use with your work use in figuring your depreciation deduction. H&r block military discount Exception for computer used in a home office. H&r block military discount   The more-than-50%-use test does not apply to a computer used only in a part of your home that meets the requirements described later under Home Office . H&r block military discount You can claim accelerated depreciation using GDS for a computer used in a qualifying home office, even if you do not use it more than 50% in your work. H&r block military discount You also may be able to take a section 179 deduction for the year you place the computer in service. H&r block military discount See Computer used in a home office under How To Report, later. H&r block military discount More information. H&r block military discount   For more information on depreciation and the section 179 deduction for computers and other items used in a home office, see Business Furniture and Equipment in Publication 587. H&r block military discount Publication 946 has detailed information about the section 179 deduction and depreciation deductions using GDS and ADS. H&r block military discount Reporting your depreciation deduction. H&r block military discount    See How To Report, later, for information about reporting a deduction for depreciation. H&r block military discount You must keep records to prove your percentage of business and investment use. H&r block military discount Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. H&r block military discount Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. H&r block military discount Lobbying and political activities. H&r block military discount    You may not be able to deduct that part of your dues that is for certain lobbying and political activities. H&r block military discount See Lobbying Expenses under Nondeductible Expenses, later. H&r block military discount Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. H&r block military discount If you file Form 1040A, you can deduct these expenses on line 16. H&r block military discount If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. H&r block military discount However, neither spouse can deduct more than $250 of his or her qualified expenses. H&r block military discount Eligible educator. H&r block military discount   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in school for at least 900 hours during a school year. H&r block military discount Qualified expenses. H&r block military discount   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. H&r block military discount An ordinary expense is one that is common and accepted in your educational field. H&r block military discount A necessary expense is one that is helpful and appropriate for your profession as an educator. H&r block military discount An expense does not have to be required to be considered necessary. H&r block military discount   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. H&r block military discount You must reduce your qualified expenses by the following amounts. H&r block military discount Excludable U. H&r block military discount S. H&r block military discount series EE and I savings bond interest from Form 8815. H&r block military discount Nontaxable qualified state tuition program earnings. H&r block military discount Nontaxable earnings from Coverdell education savings accounts. H&r block military discount Any reimbursements you received for those expenses that were not reported to you on your Form W-2, box 1. H&r block military discount Educator expenses over limit. H&r block military discount   If you were an educator in 2013 and you had qualified expenses that you cannot take as an adjustment to gross income, you can deduct the rest as an itemized deduction subject to the 2% limit. H&r block military discount Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. H&r block military discount You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. H&r block military discount The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. H&r block military discount Principal place of business. H&r block military discount   If you have more than one place of business, the business part of your home is your principal place of business if: You use it regularly and exclusively for administrative or management activities of your trade or business, and You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. H&r block military discount   Otherwise, the location of your principal place of business generally depends on the relative importance of the activities performed at each location and the time spent at each location. H&r block military discount You should keep records that will give the information needed to figure the deduction according to these rules. H&r block military discount Also keep canceled checks, substitute checks, or account statements and receipts of the expenses paid to prove the deductions you claim. H&r block military discount More information. H&r block military discount   See Publication 587 for more detailed information and a worksheet for figuring the deduction. H&r block military discount Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. H&r block military discount You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. H&r block military discount Employment and outplacement agency fees. H&r block military discount    You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. H&r block military discount Employer pays you back. H&r block military discount   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. H&r block military discount See Recoveries in Publication 525. H&r block military discount Employer pays the employment agency. H&r block military discount   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. H&r block military discount Résumé. H&r block military discount   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. H&r block military discount Travel and transportation expenses. H&r block military discount   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. H&r block military discount You can deduct the travel expenses if the trip is primarily to look for a new job. H&r block military discount The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. H&r block military discount   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. H&r block military discount    You can choose to use the standard mileage rate to figure your car expenses. H&r block military discount The 2013 rate for business use of a vehicle is 56½ cents per mile. H&r block military discount See Publication 463 for more information on travel and car expenses. H&r block military discount Legal Fees You can deduct legal fees related to doing or keeping your job. H&r block military discount Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. H&r block military discount Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. H&r block military discount If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. H&r block military discount Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. H&r block military discount If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. H&r block military discount Research Expenses of a College Professor If you are a college professor, you can deduct your research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. H&r block military discount You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. H&r block military discount However, you cannot deduct the cost of travel as a form of education. H&r block military discount Rural Mail Carriers' Vehicle Expenses If your expenses to use a vehicle in performing services as a rural mail carrier are more than the amount of your reimbursements, you can deduct the unreimbursed expenses. H&r block military discount See chapter 4 of Publication 463 for more information. H&r block military discount Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. H&r block military discount You can depreciate the cost of tools that have a useful life substantially beyond the tax year. H&r block military discount For more information about depreciation, see Publication 946. H&r block military discount Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging If you are an employee and have ordinary and necessary business-related expenses for travel away from home, local transportation, entertainment, and gifts, you may be able to deduct these expenses. H&r block military discount Generally, you must file Form 2106 or Form 2106-EZ to claim these expenses. H&r block military discount Travel expenses. H&r block military discount   Travel expenses are those incurred while traveling away from home for your employer. H&r block military discount You can deduct travel expenses paid or incurred in connection with a temporary work assignment. H&r block military discount Generally, you cannot deduct travel expenses paid or incurred in connection with an indefinite work assignment. H&r block military discount   Travel expenses may include: The cost of getting to and from your business destination (air, rail, bus, car, etc. H&r block military discount ), Meals and lodging while away from home, Taxi fares, Baggage charges, and Cleaning and laundry expenses. H&r block military discount   Travel expenses are discussed more fully in chapter 1 of Publication 463. H&r block military discount Temporary work assignment. H&r block military discount    If your assignment or job away from home in a single location is realistically expected to last (and does in fact last) for 1 year or less, it is temporary, unless there are facts and circumstances that indicate it is not. H&r block military discount Indefinite work assignment. H&r block military discount   If your assignment or job away from home in a single location is realistically expected to last for more than 1 year, it is indefinite, whether or not it actually lasts for more than 1 year. H&r block military discount If your assignment or job away from home in a single location is realistically expected to last for 1 year or less, but at some later date it is realistically expected to exceed 1 year, it will be treated as temporary (in the absence of facts and circumstances indicating otherwise) until the date that your realistic expectation changes, and it will be treated as indefinite after that date. H&r block military discount Federal crime investigation and prosecution. H&r block military discount   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule for deducting temporary travel expenses. H&r block military discount This means that you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year. H&r block military discount   To qualify, the Attorney General must certify that you are traveling: For the Federal Government, In a temporary duty status, and To investigate, prosecute, or provide support services for the investigation or prosecution of a federal crime. H&r block military discount Armed Forces reservists traveling more than 100 miles from home. H&r block military discount   If you are a member of a reserve component of the Armed Forces of the United States and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct some of your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. H&r block military discount The amount of expenses you can deduct as an adjustment to gross income is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. H&r block military discount The balance, if any, is reported on Schedule A. H&r block military discount   You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Naval, Marine Corps, Air Force, Coast Guard Reserve, the Army National Guard of the United States, the Air National Guard of the United States, or the Reserve Corps of the Public Health Service. H&r block military discount   For more information on travel expenses, see Publication 463. H&r block military discount Local transportation expenses. H&r block military discount   Local transportation expenses are the expenses of getting from one workplace to another when you are not traveling away from home. H&r block military discount They include the cost of transportation by air, rail, bus, taxi, and the cost of using your car. H&r block military discount   You can choose to use the standard mileage rate to figure your car expenses. H&r block military discount The 2013 rate for business use of a vehicle is 56½ cents per mile. H&r block military discount    In general, the costs of commuting between your residence and your place of business are nondeductible. H&r block military discount Work at two places in a day. H&r block military discount   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. H&r block military discount Temporary work location. H&r block military discount   You can deduct expenses incurred in going between your home and a temporary work location if at least one of the following applies. H&r block military discount The work location is outside the metropolitan area where you live and normally work. H&r block military discount You have at least one regular work location (other than your home) for the same trade or business. H&r block military discount (If this applies, the distance between your home and the temporary work location does not matter. H&r block military discount )   For this purpose, a work location is generally considered temporary if your work there is realistically expected to last (and does in fact last) for 1 year or less. H&r block military discount It is not temporary if your work there is realistically expected to last for more than 1 year, even if it actually lasts for 1 year or less. H&r block military discount If your work there initially is realistically expected to last for 1 year or less, but later is realistically expected to last for more than 1 year, the work location is generally considered temporary until the date your realistic expectation changes and not temporary after that date. H&r block military discount For more information, see chapter 1 of Publication 463. H&r block military discount Home office. H&r block military discount   You can deduct expenses incurred in going between your home and a workplace if your home is your principal place of business for the same trade or business. H&r block military discount (In this situation, whether the other workplace is temporary or regular and its distance from your home do not matter. H&r block military discount ) See Home Office , earlier, for a discussion on the use of your home as your principal place of business. H&r block military discount Meals and entertainment. H&r block military discount   Generally, you can deduct entertainment expenses (including entertainment-related meals) only if they are directly related to the active conduct of your trade or business. H&r block military discount However, the expense only needs to be associated with the active conduct of your trade or business if it directly precedes or follows a substantial and bona fide business-related discussion. H&r block military discount   You can deduct only 50% of your business-related meal and entertainment expenses unless the expenses meet certain exceptions. H&r block military discount You apply this 50% limit before you apply the 2%-of-adjusted-gross-income limit. H&r block military discount Meals when subject to “hours of service” limits. H&r block military discount   You can deduct 80% of your business-related meal expenses if you consume the meals during or incident to any period subject to the Department of Transportation's “hours of service” limits. H&r block military discount You apply this 80% limit before you apply the 2%-of-adjusted-gross-income limit. H&r block military discount Gift expenses. H&r block military discount   You can generally deduct up to $25 of business gifts you give to any one individual during the year. H&r block military discount The following items do not count toward the $25 limit. H&r block military discount Identical, widely distributed items costing $4 or less that have your name clearly and permanently imprinted. H&r block military discount Signs, racks, and promotional materials to be displayed on the business premises of the recipient. H&r block military discount Local lodging. H&r block military discount   If your employer provides or requires you to obtain lodging while you are not traveling away from home, you can deduct the cost of the lodging if it is: on a temporary basis, necessary for you to participate in or be available for a business meeting or employer function, and the costs are ordinary and necessary, but not lavish or extravagant. H&r block military discount   If your employer provides the lodging or reimburses you for the cost of the lodging, you can deduct the cost only if the value or the reimbursement is included in your gross income because it is reported as wages on your Form W-2. H&r block military discount Additional information. H&r block military discount    See Publication 463 for more information on travel, transportation, meal, entertainment, and gift expenses, and reimbursements for these expenses. H&r block military discount Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. H&r block military discount You can also deduct assessments for benefit payments to unemployed union members. H&r block military discount However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. H&r block military discount Also, you cannot deduct contributions to a pension fund even if the union requires you to make the contributions. H&r block military discount You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. H&r block military discount See Lobbying Expenses under Nondeductible Expenses, later. H&r block military discount Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. H&r block military discount You must wear them as a condition of your employment. H&r block military discount The clothes are not suitable for everyday wear. H&r block military discount It is not enough that you wear distinctive clothing. H&r block military discount The clothing must be specifically required by your employer. H&r block military discount Nor is it enough that you do not, in fact, wear your work clothes away from work. H&r block military discount The clothing must not be suitable for taking the place of your regular clothing. H&r block military discount Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. H&r block military discount ). H&r block military discount Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. H&r block military discount However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. H&r block military discount Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. H&r block military discount Protective clothing. H&r block military discount   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. H&r block military discount   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. H&r block military discount Military uniforms. H&r block military discount   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. H&r block military discount However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. H&r block military discount In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. H&r block military discount   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. H&r block military discount   If you are a student at an armed forces academy, you cannot deduct the cost of your uniforms if they replace regular clothing. H&r block military discount However, you can deduct the cost of insignia, shoulder boards, and related items. H&r block military discount    You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. H&r block military discount Work-Related Education You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests. H&r block military discount It maintains or improves skills required in your present work. H&r block military discount It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer. H&r block military discount You cannot deduct expenses you have for education, even though one or both of the preceding tests are met, if the education: Is needed to meet the minimum educational requirements to qualify you in your trade or business, or Is part of a program of study that will lead to qualifying you in a new trade or business. H&r block military discount If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs. H&r block military discount If the education qualifies you for a new trade or business, you cannot deduct the educational expenses even if you do not intend to enter that trade or business. H&r block military discount Travel as education. H&r block military discount   You cannot deduct the cost of travel that in itself constitutes a form of education. H&r block military discount For example, a French teacher who travels to France to maintain general familiarity with the French language and culture cannot deduct the cost of the trip as an educational expense. H&r block military discount More information. H&r block military discount    See Publication 970, Tax Benefits for Education, for a complete discussion of the deduction for work-related education expenses. H&r block military discount Education Expenses During Unemployment If you stop working for a year or less in order to get education in order to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. H&r block military discount Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. H&r block military discount Tax Preparation Fees You can usually deduct tax preparation fees on the return for the year in which you pay them. H&r block military discount Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. H&r block military discount These fees include the cost of tax preparation software programs and tax publications. H&r block military discount They also include any fee you paid for electronic filing of your return. H&r block military discount See Tax preparation fees under How To Report, later. H&r block military discount Other Expenses You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income limit. H&r block military discount On Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9, you can deduct the ordinary and necessary expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. H&r block military discount You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonable and closely related to these purposes. H&r block military discount These other expenses include the following items. H&r block military discount Appraisal fees for a casualty loss or charitable contribution. H&r block military discount Casualty and theft losses from property used in performing services as an employee. H&r block military discount Clerical help and office rent in caring for investments. H&r block military discount Depreciation on home computers used for investments. H&r block military discount Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust. H&r block military discount Fees to collect interest and dividends. H&r block military discount Hobby expenses, but generally not more than hobby income. H&r block military discount Indirect miscellaneous deductions from pass-through entities. H&r block military discount Investment fees and expenses. H&r block military discount Legal fees related to producing or collecting taxable income or getting tax advice. H&r block military discount Loss on deposits in an insolvent or bankrupt financial institution. H&r block military discount Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed to you. H&r block military discount Repayments of income. H&r block military discount Repayments of social security benefits. H&r block military discount Safe deposit box rental, except for storing jewelry and other personal effects. H&r block military discount Service charges on dividend reinvestment plans. H&r block military discount Tax advice fees. H&r block military discount Trustee's fees for your IRA, if separately billed and paid. H&r block military discount If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses, later, under Nondeductible Expenses. H&r block military discount Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. H&r block military discount Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. H&r block military discount First report the loss in Section B of Form 4684, Casualties and Thefts. H&r block military discount You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. H&r block military discount To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. H&r block military discount For more information on casualty and theft losses, see Publication 547, Casualties, Disasters, and Thefts. H&r block military discount Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. H&r block military discount Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. H&r block military discount The fees are deductible on the return for the year in which you paid them. H&r block military discount For example, fees charged to payments made in 2013 can be claimed on the 2013 tax return. H&r block military discount Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). H&r block military discount You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. H&r block military discount But if you work as an employee and also use the computer in that work, see Depreciation on Computers under Unreimbursed Employee Expenses, earlier. H&r block military discount For more information on depreciation, see Publication 946. H&r block military discount Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. H&r block military discount Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. H&r block military discount The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. H&r block military discount For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. H&r block military discount Fees To Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. H&r block military discount But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. H&r block military discount You must add the fee to the cost of the property. H&r block military discount You cannot deduct the fee you pay to a broker to sell securities. H&r block military discount You can use the fee only to figure gain or loss from the sale. H&r block military discount See the instructions for Schedule D (Form 1040) for information on how to report the fee. H&r block military discount Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. H&r block military discount A hobby is not a business because it is not carried on to make a profit. H&r block military discount See Not-for-Profit Activities in chapter 1 of Publication 535. H&r block military discount Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. H&r block military discount Deductions of pass-through entities are passed through to the partners or shareholders. H&r block military discount The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. H&r block military discount Example. H&r block military discount You are a member of an investment club that is formed solely to invest in securities. H&r block military discount The club is treated as a partnership. H&r block military discount The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. H&r block military discount In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. H&r block military discount However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. H&r block military discount Publicly offered mutual funds. H&r block military discount   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. H&r block military discount A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. H&r block military discount   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). H&r block military discount This net figure is the amount you report on your return as income. H&r block military discount You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. H&r block military discount Information returns. H&r block military discount   You should receive information returns from pass-through entities. H&r block military discount Partnerships and S corporations. H&r block military discount   These entities issue Schedule K-1, which lists the items and amounts you must report, and identifies the tax return schedules and lines to use. H&r block military discount Nonpublicly offered mutual funds. H&r block military discount   These funds will send you a Form 1099-DIV, or a substitute form, showing your share of gross income and investment expenses. H&r block military discount You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. H&r block military discount Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. H&r block military discount Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. H&r block military discount You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. H&r block military discount You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F) on the appropriate schedule. H&r block military discount You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040 or Form 1040NR). H&r block military discount See Tax Preparation Fees, earlier. H&r block military discount Unlawful discrimination claims. H&r block military discount   You may be able to deduct, as an adjustment to income on Form 1040, line 36, or Form 1040NR, line 35, rather than as a miscellaneous itemized deduction, attorney fees and court costs for actions settled or decided after October 22, 2004, involving a claim of unlawful discrimination, a claim against the U. H&r block military discount S. H&r block military discount Government, or a claim made under section 1862(b)(3)(A) of the Social Security Act. H&r block military discount However, the amount you can deduct on Form 1040, line 36, or Form 1040NR, line 35, is limited to the amount of the judgment or settlement you are including in income for the tax year. H&r block military discount See Publication 525 for more information. H&r block military discount Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. H&r block military discount If you can reasonably estimate the amount of your loss on money you have on deposit in a financial institution that becomes insolvent or bankrupt, you can generally choose to deduct it in the current year even though its exact amount has not been finally determined. H&r block military discount If elected, the casualty loss is subject to certain deduction limitations. H&r block military discount The election is made on Form 4684. H&r block military discount Once you make this choice, you cannot change it without IRS approval. H&r block military discount If none of the deposit is federally insured, you can deduct the loss in either of the following ways. H&r block military discount As an ordinary loss (as a miscellaneous itemized deduction subject to the 2% limit). H&r block military discount Write the name of the financial institution and “Insolvent Financial Institution” beside the amount on Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9. H&r block military discount This deduction is limited to $20,000 ($10,000 if you are married filing separately) for each financial institution, reduced by any expected state insurance proceeds. H&r block military discount As a casualty loss. H&r block military discount Report it on Form 4684 first and then on Schedule A (Form 1040). H&r block military discount See Publication 547 for details. H&r block military discount As a nonbusiness bad debt. H&r block military discount Report it on Schedule D (Form 1040). H&r block military discount If any part of the deposit is federally insured, you can deduct the loss only as a casualty loss. H&r block military discount Exception. H&r block military discount   You cannot make this choice if you are a 1%-or-more-owner or an officer of the financial institution, or are related to such owner or officer. H&r block military discount For a definition of “related,” see Deposit in Insolvent or Bankrupt Financial Institution in chapter 4 of Publication 550. H&r block military discount Actual loss different from estimated loss. H&r block military discount   If you make this choice and your actual loss is less than your estimated loss, you must include the excess in income. H&r block military discount See Recoveries in Publication 525. H&r block military discount If your actual loss is more than your estimated loss, treat the excess loss as explained under Choice not made, next. H&r block military discount Choice not made. H&r block military discount   If you do not make this choice (or if you have an excess actual loss after choosing to deduct your estimated loss), treat your loss (or excess loss) as a nonbusiness bad debt (deductible as a short-term capital loss) in the year its amount is finally determined. H&r block military discount See Nonbusiness Bad Debts in chapter 4 of Publication 550. H&r block military discount Loss on IRA If you have a loss on your traditional IRA (or Roth IRA) investment, you can deduct the loss as a miscellaneous itemized deduction subject to the 2% limit, but only when all the amounts in all your traditional IRA (or Roth IRA) accounts have been distributed to you and the total distributions are less than your unrecovered basis. H&r block military discount For more information, see Publication 590, Individual Retirement Arrangements (IRAs). H&r block military discount Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. H&r block military discount If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. H&r block military discount If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. H&r block military discount Repayments of Social Security Benefits If the total of the amounts in box 5 (net benefits for 2013) of all your Forms SSA-1099, Social Security Benefit Statement, and Forms RRB-1099, Payments By the Railroad Retirement Board, is a negative figure (a figure in parentheses), you may be able to take a miscellaneous itemized deduction subject to the 2% limit. H&r block military discount The amount you can deduct is the part of the negative figure that represents an amount you included in gross income in an earlier year. H&r block military discount The amount in box 5 of Form SSA-1099 or RRB-1099 is the net amount of your benefits for the year. H&r block military discount It will be a negative figure if the amount of benefits you repaid in 2013 (box 4) is more than the gross amount of benefits paid to you in 2013 (box 3). H&r block military discount If the deduction is more than $3,000, you will have to use a special computation to figure your tax. H&r block military discount See Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for additional information. H&r block military discount Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. H&r block military discount You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. H&r block military discount Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. H&r block military discount These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. H&r block military discount Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your IRA are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. H&r block military discount Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. H&r block military discount They are not subject to the 2% limit. H&r block military discount Report these items on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. H&r block military discount List of Deductions Amortizable premium on taxable bonds. H&r block military discount Casualty and theft losses from income-producing property. H&r block military discount Federal estate tax on income in respect of a decedent. H&r block military discount Gambling losses up to the amount of gambling winnings. H&r block military discount Impairment-related work expenses of persons with disabilities. H&r block military discount Loss from other activities from Schedule K-1 (Form 1065-B), box 2. H&r block military discount Losses from Ponzi-type investment schemes. H&r block military discount Repayments of more than $3,000 under a claim of right. H&r block military discount Unrecovered investment in an annuity. H&r block military discount Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. H&r block military discount You can elect to amortize the premium on taxable bonds. H&r block military discount The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. H&r block military discount Pre-1998 election to amortize bond premium. H&r block military discount   Generally, if you first elected to amortize bond premium before 1998, the above treatment of the premium does not apply to bonds you acquired before 1988. H&r block military discount Bonds acquired after October 22, 1986, and before 1988. H&r block military discount   The amortization of the premium on these bonds is investment interest expense subject to the investment interest limit, unless you chose to treat it as an offset to interest income on the bond. H&r block military discount Bonds acquired before October 23, 1986. H&r block military discount   The amortization of the premium on these bonds is a miscellaneous itemized deduction not subject to the 2% limit. H&r block military discount Deduction for excess premium. H&r block military discount   On certain bonds (such as bonds that pay a variable rate of interest or that provide for an interest-free period), the amount of bond premium allocable to a period may exceed the amount of stated interest allocable to the period. H&r block military discount If this occurs, treat the excess as a miscellaneous itemized deduction that is not subject to the 2% limit. H&r block military discount However, the amount deductible is limited to the amount by which your total interest inclusions on the bond in prior periods exceed the total amount you treated as a bond premium deduction on the bond in prior periods. H&r block military discount If any of the excess bond premium cannot be deducted because of the limit, this amount is carried forward to the next period and is treated as bond premium allocable to that period. H&r block military discount    Pre-1998 choice to amortize bond premium. H&r block military discount If you made the choice to amortize the premium on taxable bonds before 1998, you can deduct the bond premium amortization that is more than your interest income only for bonds acquired during 1998 and later years. H&r block military discount More information. H&r block military discount    For more information on bond premium, see Bond Premium Amortization in chapter 3 of Publication 550. H&r block military discount Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). H&r block military discount First report the loss in Section B of Form 4684. H&r block military discount You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. H&r block military discount To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. H&r block military discount For more information on casualty and theft losses, see Publication 547. H&r block military discount Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. H&r block military discount Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. H&r block military discount See Publication 559 for information about figuring the amount of this deduction. H&r block military discount Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. H&r block military discount You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. H&r block military discount You cannot deduct gambling losses that are more than your winnings. H&r block military discount Generally, nonresident aliens cannot deduct gambling losses on Schedule A (Form 1040NR). H&r block military discount You cannot reduce your gambling winnings by your gambling losses and report the difference. H&r block military discount You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. H&r block military discount Therefore, your records should show your winnings separately from your losses. H&r block military discount Diary of winnings and losses. H&r block military discount You must keep an accurate diary or similar record of your losses and winnings. H&r block military discount Your diary should contain at least the following information. H&r block military discount The date and type of your specific wager or wagering activity. H&r block military discount The name and address or location of the gambling establishment. H&r block military discount The names of other persons present with you at the gambling establishment. H&r block military discount The amount(s) you won or lost. H&r block military discount Proof of winnings and losses. H&r block military discount   In addition to your diary, you should also have other documentation. H&r block military discount You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings, Form 5754, Statement by Person(s) Receiving Gambling Winnings, wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment. H&r block military discount   For specific wagering transactions, you can use the following items to support your winnings and losses. H&r block military discount    These recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. H&r block military discount They are not all-inclusive. H&r block military discount Your tax liability depends on your particular facts and circumstances. H&r block military discount Keno. H&r block military discount   Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check cashing records. H&r block military discount Slot machines. H&r block military discount   A record of the machine number and all winnings by date and time the machine was played. H&r block military discount Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc. H&r block military discount ). H&r block military discount   The number of the table at which you were playing. H&r block military discount Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage. H&r block military discount Bingo. H&r block military discount   A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. H&r block military discount Supplemental records include any receipts from the casino, parlor, etc. H&r block military discount Racing (horse, harness, dog, etc. H&r block military discount ). H&r block military discount   A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. H&r block military discount Supplemental records include unredeemed tickets and payment records from the racetrack. H&r block military discount Lotteries. H&r block military discount   A record of ticket purchases, dates, winnings, and losses. H&r block military discount Supplemental records include unredeemed tickets, payment slips, and winnings statements. H&r block military discount Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. H&r block military discount Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and other expenses in connection with your place of work that are necessary for you to be able to work. H&r block military discount Example. H&r block military discount You are blind. H&r block military discount You must use a reader to do your work. H&r block military discount You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. H&r block military discount The reader's services are only for your work. H&r block military discount You can deduct your expenses for the reader as impairment-related work expenses. H&r block military discount Self-employed. H&r block military discount   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. H&r block military discount See Impairment-related work expenses. H&r block military discount , later under How To Report. H&r block military discount Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14 (only if effectively connected with a U. H&r block military discount S. H&r block military discount trade or business). H&r block military discount It is not subject to the passive activity limitations. H&r block military discount Officials Paid on a Fee Basis If you are a fee-basis official, you can claim your expenses in performing services in that job as an adjustment to income rather than as a miscellaneous itemized deduction. H&r block military discount See Publication 463 for more information. H&r block military discount Performing Artists If you are a qualified performing artist, you can deduct your employee business expenses as an adjustment to income rather than as a miscellaneous itemized deduction. H&r block military discount If you are an employee, complete Form 2106 or Form 2106-EZ. H&r block military discount See Publication 463 for more information. H&r block military discount Losses From Ponzi-type Investment Schemes These losses are deductible as theft losses of income-producing property on your tax return for the year the loss was discovered. H&r block military discount You figure the deductible loss in Section B of Form 4684. H&r block military discount However, if you qualify to use Revenue Procedure 2009-20 (as modified by Revenue Procedure 2011-58) and you choose to follow the procedures in the guidance, complete Section C of Form 4684 before completing Section B. H&r block military discount Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. H&r block military discount You do not need to complete Appendix A. H&r block military discount See the Form 4684 instructions and Publication 547, Casualties, Disasters, and Thefts, for more information. H&r block military discount Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid, or take a credit against your tax. H&r block military discount See Repayments in Publication 525 for more information. H&r block military discount Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. H&r block military discount If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. H&r block military discount See Publication 575, Pension and Annuity Income, for more information about the tax treatment of pensions and annuities. H&r block military discount Nondeductible Expenses You cannot deduct the following expenses. H&r block military discount List of Nondeductible Expenses Adoption expenses. H&r block military discount Broker's commissions. H&r block military discount Burial or funeral expenses, including the cost of a cemetery lot. H&r block military discount Campaign expenses. H&r block military discount Capital expenses. H&r block military discount Check-writing fees. H&r block military discount Club dues. H&r block military discount Commuting expenses. H&r block military discount Fees and licenses, such as car licenses, marriage licenses, and dog tags. H&r block military discount Fines and penalties, such as parking tickets. H&r block military discount Health spa expenses. H&r block military discount Hobby losses—but see Hobby Expenses, earlier. H&r block military discount Home repairs, insurance, and rent. H&r block military discount Home security system. H&r block military discount Illegal bribes and kickbacks—see Bribes and kickbacks in chapter 11 of Publication 535. H&r block military discount Investment-related seminars. H&r block military discount Life insurance premiums paid by the insured. H&r block military discount Lobbying expenses. H&r block military discount Losses from the sale of your home, furniture, personal car, etc. H&r block military discount Lost or misplaced cash or property. H&r block military discount Lunches with co-workers. H&r block military discount Meals while working late. H&r block military discount Medical expenses as business expenses other than medical examinations required by your employer. H&r block military discount Personal disability insurance premiums. H&r block military discount Personal legal expenses. H&r block military discount Personal, living, or family expenses. H&r block military discount Political contributions. H&r block military discount Professional accreditation fees. H&r block military discount Professional reputation, expenses to improve. H&r block military discount Relief fund contributions. H&r block military discount Residential telephone line. H&r block military discount Stockholders' meeting, expenses of attending. H&r block military discount Tax-exempt income, expenses of earning or collecting. H&r block military discount The value of wages never received or lost vacation time. H&r block military discount Travel expenses for another individual. H&r block military discount Voluntary unemployment benefit fund contributions. H&r block military discount Wristwatches. H&r block military discount Adoption Expenses You cannot deduct the expenses of adopting a child but you may be able to take a credit for those expenses. H&r block military discount For details, see Form 8839, Qualified Adoption Expenses. H&r block military discount Commissions Commissions paid on the purchase of securities are not deductible, either as business or nonbusiness expenses. H&r block military discount Instead, these fees must be added to the taxpayer's cost of the securities. H&r block military discount Commissions paid on the sale are deductible as business expenses only by dealers. H&r block military discount Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. H&r block military discount These include qualification and registration fees for primary elections. H&r block military discount Legal fees. H&r block military discount   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. H&r block military discount Capital Expenses You cannot currently deduct amounts paid to buy property that has a useful life substantially beyond the tax year or amounts paid to increase the value or prolong the life of property. H&r block military discount If you use such property in your work, you may be able to take a depreciation deduction. H&r block military discount See Publication 946. H&r block military discount If the property is a car used in your work, also see Publication 463. H&r block military discount Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. H&r block military discount Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. H&r block military discount This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. H&r block military discount You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. H&r block military discount Dues paid to airline, hotel, and luncheon clubs are not deductible. H&r block military discount Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). H&r block military discount If you haul tools, instruments, or other items in your car to and from work, you can deduct only the additional cost of hauling the items, such as the rent on a trailer to carry the items. H&r block military discount Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. H&r block military discount This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). H&r block military discount Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. H&r block military discount Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. H&r block military discount Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. H&r block military discount However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. H&r block military discount See Home Office under Unreimbursed Employee Expenses, earlier, and Publication 587. H&r block military discount Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. H&r block military discount Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. H&r block military discount You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. H&r block military discount See Publication 504, Divorced or Separated Individuals, for information on alimony. H&r block military discount Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. H&r block military discount These include expenses to: Influence legislation, Participate, or intervene, in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. H&r block military discount Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. H&r block military discount Covered executive branch official. H&r block military discount   A covered executive branch official, for the purpose of (4) above, is any of the following officials. H&r block military discount The President. H&r block military discount The Vice President. H&r block military discount Any officer or employee of the White House Office of the Executive Office of the President, and the two most senior level officers of each of the other agencies in the Executive Office. H&r block military discount Any individual serving in a position in Level I of the Executive Schedule under section 5312 of Title 5, United States Code, any other individual designated by the President as having Cabinet-level status, and any immediate deputy of one of these individuals. H&r block military discount Dues used for lobbying. H&r block military discount   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. H&r block military discount Exceptions. H&r block military discount   You can deduct certain lobbying expenses if they are ordinary and necessary expenses of carrying on your trade or business. H&r block military discount You can deduct expenses for attempting to influence the legislation of any local council or similar governing body (local legislation). H&r block military discount An Indian tribal government is considered a local council or similar governing body. H&r block military discount You can deduct in-house expenses for influencing legislation or communicating directly with a covered executive branch official if the expenses for the tax year are not more than $2,000 (not counting overhead expenses). H&r block military discount If you are a professional lobbyist, you can deduct the expenses you incur in the trade or business of lobbying on behalf of another person. H&r block military discount Payments by the other person to you for lobbying activities cannot be deducted. H&r block military discount Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. H&r block military discount However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. H&r block military discount See Publication 547. H&r block military discount Example. H&r block military discount A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. H&r block military discount The diamond falls from the ring and is never found. H&r block military discount The loss of the diamond is a casualty. H&r block military discount Lunches With Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. H&r block military discount See Publication 463 for information on deductible expenses while traveling away from home. H&r block military discount Meals While Working Late You cannot deduct the cost of meals while working late. H&r block military discount However, you may be able to claim a deduction if the cost of the meals is a deductible entertainment expense, or if you are traveling away from home. H&r block military discount See Publication 463 for information on deductible entertainment expenses and expenses while traveling away from home. H&r block military discount Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. H&r block military discount Custody of children. H&r block military discount Breach of promise to marry suit. H&r block military discount Civil or criminal charges resulting from a personal relationship. H&r block military discount Damages for personal injury (except certain whistleblower claims and unlawful discrimination claims). H&r block military discount For more information about unlawful discrimination claims, see Deductions Subject to the 2% Limit, earlier. H&r block military discount Preparation of a title (or defense or perfection of a title). H&r block military discount Preparation of a will. H&r block military discount Property claims or property settlement in a divorce. H&r block military discount You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. H&r block military discount Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. H&r block military discount Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. H&r block military discount Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. H&r block military discount Accounting certificate fees paid for the initial right to practice accounting. H&r block military discount Bar exam fees and incidental expenses in securing initial admission to the bar. H&r block military discount Medical and dental license fees paid to get initial licensing. H&r block military discount Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. H&r block military discount Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. H&r block military discount Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. H&r block military discount Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. H&r block military discount You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. H&r block military discount Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. H&r block military discount You cannot deduct interest on a debt incurred or continued to buy or carry tax-exempt securities. H&r block military discount If you have expenses to p
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The H&r Block Military Discount

H&r block military discount 7. H&r block military discount   Costs You Can Deduct or Capitalize Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Carrying Charges Research and Experimental CostsProduct. H&r block military discount Costs not included. H&r block military discount Intangible Drilling Costs Exploration CostsPartnerships and S corporations. H&r block military discount Development Costs Circulation Costs Business Start-Up and Organizational Costs Reforestation Costs Retired Asset Removal Costs Barrier Removal CostsOther barrier removals. H&r block military discount Film and Television Production Costs What's New Film and television productions costs. H&r block military discount  The election to expense film and television production costs does not apply to productions that begin after December 31, 2013. H&r block military discount See Film and Television Production Costs , later. H&r block military discount Introduction This chapter discusses costs you can elect to deduct or capitalize. H&r block military discount You generally deduct a cost as a current business expense by subtracting it from your income in either the year you incur it or the year you pay it. H&r block military discount If you capitalize a cost, you may be able to recover it over a period of years through periodic deductions for amortization, depletion, or depreciation. H&r block military discount When you capitalize a cost, you add it to the basis of property to which it relates. H&r block military discount A partnership, corporation, estate, or trust makes the election to deduct or capitalize the costs discussed in this chapter except for exploration costs for mineral deposits. H&r block military discount Each individual partner, shareholder, or beneficiary elects whether to deduct or capitalize exploration costs. H&r block military discount You may be subject to the alternative minimum tax (AMT) if you deduct research and experimental, intangible drilling, exploration, development, circulation, or business organizational costs. H&r block military discount For more information on the alternative minimum tax, see the instructions for the following forms. H&r block military discount Form 6251, Alternative Minimum Tax—Individuals. H&r block military discount Form 4626, Alternative Minimum Tax—Corporations. H&r block military discount Topics - This chapter discusses: Carrying charges Research and experimental costs Intangible drilling costs Exploration costs Development costs Circulation costs Qualified disaster expenses Business start-up and organizational costs Reforestation costs Retired asset removal costs Barrier removal costs Film and television production costs Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets Form (and Instructions) 3468 Investment Credit 8826 Disabled Access Credit See chapter 12 for information about getting publications and forms. H&r block military discount Carrying Charges Carrying charges include the taxes and interest you pay to carry or develop real property or to carry, transport, or install personal property. H&r block military discount Certain carrying charges must be capitalized under the uniform capitalization rules. H&r block military discount (For information on capitalization of interest, see chapter 4 . H&r block military discount ) You can elect to capitalize carrying charges not subject to the uniform capitalization rules, but only if they are otherwise deductible. H&r block military discount You can elect to capitalize carrying charges separately for each project you have and for each type of carrying charge. H&r block military discount For unimproved and unproductive real property, your election is good for only 1 year. H&r block military discount You must decide whether to capitalize carrying charges each year the property remains unimproved and unproductive. H&r block military discount For other real property, your election to capitalize carrying charges remains in effect until construction or development is completed. H&r block military discount For personal property, your election is effective until the date you install or first use it, whichever is later. H&r block military discount How to make the election. H&r block military discount   To make the election to capitalize a carrying charge, attach a statement to your original tax return for the year the election is to be effective indicating which charges you are electing to capitalize. H&r block military discount However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). H&r block military discount Attach the statement to the amended return and write “Filed pursuant to section 301. H&r block military discount 9100-2” on the statement. H&r block military discount File the amended return at the same address you filed the original return. H&r block military discount Research and Experimental Costs The costs of research and experimentation are generally capital expenses. H&r block military discount However, you can elect to deduct these costs as a current business expense. H&r block military discount Your election to deduct these costs is binding for the year it is made and for all later years unless you get IRS approval to make a change. H&r block military discount If you meet certain requirements, you may elect to defer and amortize research and experimental costs. H&r block military discount For information on electing to defer and amortize these costs, see Research and Experimental Costs in chapter 8. H&r block military discount Research and experimental costs defined. H&r block military discount   Research and experimental costs are reasonable costs you incur in your trade or business for activities intended to provide information that would eliminate uncertainty about the development or improvement of a product. H&r block military discount Uncertainty exists if the information available to you does not establish how to develop or improve a product or the appropriate design of a product. H&r block military discount Whether costs qualify as research and experimental costs depends on the nature of the activity to which the costs relate rather than on the nature of the product or improvement being developed or the level of technological advancement. H&r block military discount      The costs of obtaining a patent, including attorneys' fees paid or incurred in making and perfecting a patent application, are research and experimental costs. H&r block military discount However, costs paid or incurred to obtain another's patent are not research and experimental costs. H&r block military discount Product. H&r block military discount   The term “product” includes any of the following items. H&r block military discount Formula. H&r block military discount Invention. H&r block military discount Patent. H&r block military discount Pilot model. H&r block military discount Process. H&r block military discount Technique. H&r block military discount Property similar to the items listed above. H&r block military discount It also includes products used by you in your trade or business or held for sale, lease, or license. H&r block military discount Costs not included. H&r block military discount   Research and experimental costs do not include expenses for any of the following activities. H&r block military discount Advertising or promotions. H&r block military discount Consumer surveys. H&r block military discount Efficiency surveys. H&r block military discount Management studies. H&r block military discount Quality control testing. H&r block military discount Research in connection with literary, historical, or similar projects. H&r block military discount The acquisition of another's patent, model, production, or process. H&r block military discount When and how to elect. H&r block military discount   You make the election to deduct research and experimental costs by deducting them on your tax return for the year in which you first pay or incur research and experimental costs. H&r block military discount If you do not make the election to deduct research and experimental costs in the first year in which you pay or incur the costs, you can deduct the costs in a later year only with approval from the IRS. H&r block military discount Deducting or Amortizing Research and Experimentation Costs IF you . H&r block military discount . H&r block military discount . H&r block military discount THEN . H&r block military discount . H&r block military discount . H&r block military discount Elect to deduct research and experimental costs as a current business expense Deduct all research and experimental costs in the first year you pay or incur the costs and all later years. H&r block military discount Do not deduct research and experimental costs as a current business expense If you meet the requirements, amortize them over at least 60 months, starting with the month you first receive an economic benefit from the research. H&r block military discount See Research and Experimental Costs in chapter 8. H&r block military discount Research credit. H&r block military discount   If you pay or incur qualified research expenses, you may be able to take the research credit. H&r block military discount For more information see Form 6765, Credit for Increasing Research Activities and its instructions. H&r block military discount Intangible Drilling Costs The costs of developing oil, gas, or geothermal wells are ordinarily capital expenditures. H&r block military discount You can usually recover them through depreciation or depletion. H&r block military discount However, you can elect to deduct intangible drilling costs (IDCs) as a current business expense. H&r block military discount These are certain drilling and development costs for wells in the United States in which you hold an operating or working interest. H&r block military discount You can deduct only costs for drilling or preparing a well for the production of oil, gas, or geothermal steam or hot water. H&r block military discount You can elect to deduct only the costs of items with no salvage value. H&r block military discount These include wages, fuel, repairs, hauling, and supplies related to drilling wells and preparing them for production. H&r block military discount Your cost for any drilling or development work done by contractors under any form of contract is also an IDC. H&r block military discount However, see Amounts paid to contractor that must be capitalized , later. H&r block military discount You can also elect to deduct the cost of drilling exploratory bore holes to determine the location and delineation of offshore hydrocarbon deposits if the shaft is capable of conducting hydrocarbons to the surface on completion. H&r block military discount It does not matter whether there is any intent to produce hydrocarbons. H&r block military discount If you do not elect to deduct your IDCs as a current business expense, you can elect to deduct them over the 60-month period beginning with the month they were paid or incurred. H&r block military discount Amounts paid to contractor that must be capitalized. H&r block military discount   Amounts paid to a contractor must be capitalized if they are either: Amounts properly allocable to the cost of depreciable property, or Amounts paid only out of production or proceeds from production if these amounts are depletable income to the recipient. H&r block military discount How to make the election. H&r block military discount   You elect to deduct IDCs as a current business expense by taking the deduction on your income tax return for the first tax year you have eligible costs. H&r block military discount No formal statement is required. H&r block military discount If you file Schedule C (Form 1040), enter these costs under “Other expenses. H&r block military discount ”   For oil and gas wells, your election is binding for the year it is made and for all later years. H&r block military discount For geothermal wells, your election can be revoked by the filing of an amended return on which you do not take the deduction. H&r block military discount You can file the amended return for the year up to the normal time of expiration for filing a claim for credit or refund, generally, within 3 years after the date you filed the original return or within 2 years after the date you paid the tax, whichever is later. H&r block military discount Energy credit for costs of geothermal wells. H&r block military discount   If you capitalize the drilling and development costs of geothermal wells that you place in service during the tax year, you may be able to claim a business energy credit. H&r block military discount See the Instructions for Form 3468 for more information. H&r block military discount Nonproductive well. H&r block military discount   If you capitalize your IDCs, you have another option if the well is nonproductive. H&r block military discount You can deduct the IDCs of the nonproductive well as an ordinary loss. H&r block military discount You must indicate and clearly state your election on your tax return for the year the well is completed. H&r block military discount Once made, the election for oil and gas wells is binding for all later years. H&r block military discount You can revoke your election for a geothermal well by filing an amended return that does not claim the loss. H&r block military discount Costs incurred outside the United States. H&r block military discount   You cannot deduct as a current business expense all the IDCs paid or incurred for an oil, gas, or geothermal well located outside the United States. H&r block military discount However, you can elect to include the costs in the adjusted basis of the well to figure depletion or depreciation. H&r block military discount If you do not make this election, you can deduct the costs over the 10-year period beginning with the tax year in which you paid or incurred them. H&r block military discount These rules do not apply to a nonproductive well. H&r block military discount Exploration Costs The costs of determining the existence, location, extent, or quality of any mineral deposit are ordinarily capital expenditures if the costs lead to the development of a mine. H&r block military discount You recover these costs through depletion as the mineral is removed from the ground. H&r block military discount However, you can elect to deduct domestic exploration costs paid or incurred before the beginning of the development stage of the mine (except those for oil and gas wells). H&r block military discount How to make the election. H&r block military discount   You elect to deduct exploration costs by taking the deduction on your income tax return, or on an amended income tax return, for the first tax year for which you wish to deduct the costs paid or incurred during the tax year. H&r block military discount Your return must adequately describe and identify each property or mine, and clearly state how much is being deducted for each one. H&r block military discount The election applies to the tax year you make this election and all later tax years. H&r block military discount Partnerships and S corporations. H&r block military discount   Each partner, not the partnership, elects whether to capitalize or to deduct that partner's share of exploration costs. H&r block military discount Each shareholder, not the S corporation, elects whether to capitalize or to deduct that shareholder's share of exploration costs. H&r block military discount Reduced corporate deductions for exploration costs. H&r block military discount   A corporation (other than an S corporation) can deduct only 70% of its domestic exploration costs. H&r block military discount It must capitalize the remaining 30% of costs and amortize them over the 60-month period starting with the month the exploration costs are paid or incurred. H&r block military discount A corporation may also elect to capitalize and amortize mining exploration costs over a 10-year period. H&r block military discount For more information on this method of amortization, see Internal Revenue Code section 59(e). H&r block military discount   The 30% the corporation capitalizes cannot be added to its basis in the property to figure cost depletion. H&r block military discount However, the amount amortized is treated as additional depreciation and is subject to recapture as ordinary income on a disposition of the property. H&r block military discount See Section 1250 Property under Depreciation Recapture in chapter 3 of Publication 544. H&r block military discount   These rules also apply to the deduction of development costs by corporations. H&r block military discount See Development Costs , later. H&r block military discount Recapture of exploration expenses. H&r block military discount   When your mine reaches the producing stage, you must recapture any exploration costs you elected to deduct. H&r block military discount Use either of the following methods. H&r block military discount Method 1—Include the deducted costs in gross income for the tax year the mine reaches the producing stage. H&r block military discount Your election must be clearly indicated on the return. H&r block military discount Increase your adjusted basis in the mine by the amount included in income. H&r block military discount Generally, you must elect this recapture method by the due date (including extensions) of your return. H&r block military discount However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). H&r block military discount Make the election on your amended return and write “Filed pursuant to section 301. H&r block military discount 9100-2” on the form where you are including the income. H&r block military discount File the amended return at the same address you filed the original return. H&r block military discount Method 2—Do not claim any depletion deduction for the tax year the mine reaches the producing stage and any later tax years until the depletion you would have deducted equals the exploration costs you deducted. H&r block military discount   You also must recapture deducted exploration costs if you receive a bonus or royalty from mine property before it reaches the producing stage. H&r block military discount Do not claim any depletion deduction for the tax year you receive the bonus or royalty and any later tax years until the depletion you would have deducted equals the exploration costs you deducted. H&r block military discount   Generally, if you dispose of the mine before you have fully recaptured the exploration costs you deducted, recapture the balance by treating all or part of your gain as ordinary income. H&r block military discount Under these circumstances, you generally treat as ordinary income all of your gain if it is less than your adjusted exploration costs with respect to the mine. H&r block military discount If your gain is more than your adjusted exploration costs, treat as ordinary income only a part of your gain, up to the amount of your adjusted exploration costs. H&r block military discount Foreign exploration costs. H&r block military discount   If you pay or incur exploration costs for a mine or other natural deposit located outside the United States, you cannot deduct all the costs in the current year. H&r block military discount You can elect to include the costs (other than for an oil, gas, or geothermal well) in the adjusted basis of the mineral property to figure cost depletion. H&r block military discount (Cost depletion is discussed in chapter 9 . H&r block military discount ) If you do not make this election, you must deduct the costs over the 10-year period beginning with the tax year in which you pay or incur them. H&r block military discount These rules also apply to foreign development costs. H&r block military discount Development Costs You can deduct costs paid or incurred during the tax year for developing a mine or any other natural deposit (other than an oil or gas well) located in the United States. H&r block military discount These costs must be paid or incurred after the discovery of ores or minerals in commercially marketable quantities. H&r block military discount Development costs also include depreciation on improvements used in the development of ores or minerals and costs incurred for you by a contractor. H&r block military discount Development costs do not include the costs for the acquisition or improvement of depreciable property. H&r block military discount Instead of deducting development costs in the year paid or incurred, you can elect to treat the cost as deferred expenses and deduct them ratably as the units of produced ores or minerals benefited by the expenses are sold. H&r block military discount This election applies each tax year to expenses paid or incurred in that year. H&r block military discount Once made, the election is binding for the year and cannot be revoked for any reason. H&r block military discount How to make the election. H&r block military discount   The election to deduct development costs ratably as the ores or minerals are sold must be made for each mine or other natural deposit by a clear indication on your return or by a statement filed with the IRS office where you file your return. H&r block military discount Generally, you must make the election by the due date of the return (including extensions). H&r block military discount However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). H&r block military discount Clearly indicate the election on your amended return and write “Filed pursuant to section 301. H&r block military discount 9100-2. H&r block military discount ” File the amended return at the same address you filed the original return. H&r block military discount Foreign development costs. H&r block military discount   The rules discussed earlier for foreign exploration costs apply to foreign development costs. H&r block military discount Reduced corporate deductions for development costs. H&r block military discount   The rules discussed earlier for reduced corporate deductions for exploration costs also apply to corporate deductions for development costs. H&r block military discount Circulation Costs A publisher can deduct as a current business expense the costs of establishing, maintaining, or increasing the circulation of a newspaper, magazine, or other periodical. H&r block military discount For example, a publisher can deduct the cost of hiring extra employees for a limited time to get new subscriptions through telephone calls. H&r block military discount Circulation costs are deductible even if they normally would be capitalized. H&r block military discount This rule does not apply to the following costs that must be capitalized. H&r block military discount The purchase of land or depreciable property. H&r block military discount The acquisition of circulation through the purchase of any part of the business of another publisher of a newspaper, magazine, or other periodical, including the purchase of another publisher's list of subscribers. H&r block military discount Other treatment of circulation costs. H&r block military discount   If you do not want to deduct circulation costs as a current business expense, you can elect one of the following ways to recover these costs. H&r block military discount Capitalize all circulation costs that are properly chargeable to a capital account (see chapter 1 ). H&r block military discount Amortize circulation costs over the 3-year period beginning with the tax year they were paid or incurred. H&r block military discount How to make the election. H&r block military discount   You elect to capitalize circulation costs by attaching a statement to your return for the first tax year the election applies. H&r block military discount Your election is binding for the year it is made and for all later years, unless you get IRS approval to revoke it. H&r block military discount Business Start-Up and Organizational Costs Business start-up and organizational costs are generally capital expenditures. H&r block military discount However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. H&r block military discount The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. H&r block military discount Any remaining costs must be amortized. H&r block military discount For information about amortizing start-up and organizational costs, see chapter 8 . H&r block military discount Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business. H&r block military discount Organizational costs include the costs of creating a corporation. H&r block military discount For more information on start-up and organizational costs, see chapter 8 . H&r block military discount How to make the election. H&r block military discount   You elect to deduct the start-up or organizational costs by claiming the deduction on your income tax return (filed by the due date including extensions) for the tax year in which the active trade or business begins. H&r block military discount However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). H&r block military discount Clearly indicate the election on your amended return and write “Filed pursuant to section 301. H&r block military discount 9100-2. H&r block military discount ” File the amended return at the same address you filed the original return. H&r block military discount The election applies when computing taxable income for the current tax year and all subsequent years. H&r block military discount Reforestation Costs Reforestation costs are generally capital expenditures. H&r block military discount However, you can elect to deduct up to $10,000 ($5,000 if married filing separately; $0 for a trust) of qualifying reforestation costs paid or incurred after October 22, 2004, for each qualified timber property. H&r block military discount The remaining costs can be amortized over an 84-month period. H&r block military discount For information about amortizing reforestation costs, see chapter 8 . H&r block military discount Qualifying reforestation costs are the direct costs of planting or seeding for forestation or reforestation. H&r block military discount Qualified timber property is property that contains trees in significant commercial quantities. H&r block military discount See chapter 8 for more information on qualifying reforestation costs and qualified timber property. H&r block military discount If you elect to deduct qualified reforestation costs, create and maintain separate timber accounts for each qualified timber property and include all reforestation costs and the dates each was applied. H&r block military discount Do not include this qualified timber property in any account (for example, depletion block) for which depletion is allowed. H&r block military discount How to make the election. H&r block military discount   You elect to deduct qualifying reforestation costs by claiming the deduction on your timely filed income tax return (including extensions) for the tax year the expenses were paid or incurred. H&r block military discount If Form T (Timber), Forest Activities Schedule, is required, complete Part IV of Form T. H&r block military discount If Form T is not required, attach a statement containing the following information for each qualified timber property for which an election is being made. H&r block military discount The unique stand identification numbers. H&r block military discount The total number of acres reforested during the tax year. H&r block military discount The nature of the reforestation treatments. H&r block military discount The total amounts of qualified reforestation expenditures eligible to be amortized or deducted. H&r block military discount   If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). H&r block military discount Clearly indicate the election on your amended return and write “Filed pursuant to section 301. H&r block military discount 9100-2. H&r block military discount ” File the amended return at the same address you filed the original return. H&r block military discount The election applies when computing taxable income for the current tax year and all subsequent years. H&r block military discount   For additional information on reforestation costs, see chapter 8 . H&r block military discount Recapture. H&r block military discount   This deduction may have to be recaptured as ordinary income under section 1245 when you sell or otherwise dispose of the property that would have received an addition to basis if you had not elected to deduct the expenditure. H&r block military discount For more information on recapturing the deduction, see Depreciation Recapture in Publication 544. H&r block military discount Retired Asset Removal Costs If you retire and remove a depreciable asset in connection with the installation or production of a replacement asset, you can deduct the costs of removing the retired asset. H&r block military discount However, if you replace a component (part) of a depreciable asset, capitalize the removal costs if the replacement is an improvement and deduct the costs if the replacement is a repair. H&r block military discount Barrier Removal Costs The cost of an improvement to a business asset is normally a capital expense. H&r block military discount However, you can elect to deduct the costs of making a facility or public transportation vehicle more accessible to and usable by those who are disabled or elderly. H&r block military discount You must own or lease the facility or vehicle for use in connection with your trade or business. H&r block military discount A facility is all or any part of buildings, structures, equipment, roads, walks, parking lots, or similar real or personal property. H&r block military discount A public transportation vehicle is a vehicle, such as a bus or railroad car, that provides transportation service to the public (including service for your customers, even if you are not in the business of providing transportation services). H&r block military discount You cannot deduct any costs that you paid or incurred to completely renovate or build a facility or public transportation vehicle or to replace depreciable property in the normal course of business. H&r block military discount Deduction limit. H&r block military discount   The most you can deduct as a cost of removing barriers to the disabled and the elderly for any tax year is $15,000. H&r block military discount However, you can add any costs over this limit to the basis of the property and depreciate these excess costs. H&r block military discount Partners and partnerships. H&r block military discount   The $15,000 limit applies to a partnership and also to each partner in the partnership. H&r block military discount A partner can allocate the $15,000 limit in any manner among the partner's individually incurred costs and the partner's distributive share of partnership costs. H&r block military discount If the partner cannot deduct the entire share of partnership costs, the partnership can add any costs not deducted to the basis of the improved property. H&r block military discount   A partnership must be able to show that any amount added to basis was not deducted by the partner and that it was over a partner's $15,000 limit (as determined by the partner). H&r block military discount If the partnership cannot show this, it is presumed that the partner was able to deduct the distributive share of the partnership's costs in full. H&r block military discount Example. H&r block military discount Emilio Azul's distributive share of ABC partnership's deductible expenses for the removal of architectural barriers was $14,000. H&r block military discount Emilio had $12,000 of similar expenses in his sole proprietorship. H&r block military discount He elected to deduct $7,000 of them. H&r block military discount Emilio allocated the remaining $8,000 of the $15,000 limit to his share of ABC's expenses. H&r block military discount Emilio can add the excess $5,000 of his own expenses to the basis of the property used in his business. H&r block military discount Also, if ABC can show that Emilio could not deduct $6,000 ($14,000 – $8,000) of his share of the partnership's expenses because of how Emilio applied the limit, ABC can add $6,000 to the basis of its property. H&r block military discount Qualification standards. H&r block military discount   You can deduct your costs as a current expense only if the barrier removal meets the guidelines and requirements issued by the Architectural and Transportation Barriers Compliance Board under the Americans with Disabilities Act (ADA) of 1990. H&r block military discount You can view the Americans with Disabilities Act at www. H&r block military discount ada. H&r block military discount gov/pubs/ada. H&r block military discount htm. H&r block military discount   The following is a list of some architectural barrier removal costs that can be deducted. H&r block military discount Ground and floor surfaces. H&r block military discount Walks. H&r block military discount Parking lots. H&r block military discount Ramps. H&r block military discount Entrances. H&r block military discount Doors and doorways. H&r block military discount Stairs. H&r block military discount Floors. H&r block military discount Toilet rooms. H&r block military discount Water fountains. H&r block military discount Public telephones. H&r block military discount Elevators. H&r block military discount Controls. H&r block military discount Signage. H&r block military discount Alarms. H&r block military discount Protruding objects. H&r block military discount Symbols of accessibility. H&r block military discount You can find the ADA guidelines and requirements for architectural barrier removal at www. H&r block military discount usdoj. H&r block military discount gov/crt/ada/reg3a. H&r block military discount html. H&r block military discount   The costs for removal of transportation barriers from rail facilities, buses, and rapid and light rail vehicles are deductible. H&r block military discount You can find the guidelines and requirements for transportation barrier removal at www. H&r block military discount fta. H&r block military discount dot. H&r block military discount gov. H&r block military discount   Also, you can access the ADA website at www. H&r block military discount ada. H&r block military discount gov for additional information. H&r block military discount Other barrier removals. H&r block military discount   To be deductible, expenses of removing any barrier not covered by the above standards must meet all three of the following tests. H&r block military discount The removed barrier must be a substantial barrier to access or use of a facility or public transportation vehicle by persons who have a disability or are elderly. H&r block military discount The removed barrier must have been a barrier for at least one major group of persons who have a disability or are elderly (such as people who are blind, deaf, or wheelchair users). H&r block military discount The barrier must be removed without creating any new barrier that significantly impairs access to or use of the facility or vehicle by a major group of persons who have a disability or are elderly. H&r block military discount How to make the election. H&r block military discount   If you elect to deduct your costs for removing barriers to the disabled or the elderly, claim the deduction on your income tax return (partnership return for partnerships) for the tax year the expenses were paid or incurred. H&r block military discount Identify the deduction as a separate item. H&r block military discount The election applies to all the qualifying costs you have during the year, up to the $15,000 limit. H&r block military discount If you make this election, you must maintain adequate records to support your deduction. H&r block military discount   For your election to be valid, you generally must file your return by its due date, including extensions. H&r block military discount However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). H&r block military discount Clearly indicate the election on your amended return and write “Filed pursuant to section 301. H&r block military discount 9100-2. H&r block military discount ” File the amended return at the same address you filed the original return. H&r block military discount Your election is irrevocable after the due date, including extensions, of your return. H&r block military discount Disabled access credit. H&r block military discount   If you make your business accessible to persons with disabilities and your business is an eligible small business, you may be able to claim the disabled access credit. H&r block military discount If you choose to claim the credit, you must reduce the amount you deduct or capitalize by the amount of the credit. H&r block military discount   For more information, see Form 8826, Disabled Access Credit. H&r block military discount Film and Television Production Costs Film and television production costs are generally capital expenses. H&r block military discount However, you can elect to deduct costs paid or incurred for certain productions commencing before January 1, 2014. H&r block military discount For more information, see section 181 of the Internal Revenue Code and the related Treasury Regulations. H&r block military discount Prev  Up  Next   Home   More Online Publications