Tax Cutting Checklist.

Below is a checklist of tax deductions that are often overlooked or missed. Some of the deductions listed below have caps, speak with your tax professional for more information.

You can also download a PDF copy here.
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Business Deductions

• Allowable amount of transportation and parking benefits provided to employees.
• Business use of your car, actual expenses or mileage.
• Gifts of a nominal value to clients and customers.
• Option to expense a certain amount of equipment purchased each year.
• Yearend bonuses to employees.

Home Deductions

• Exclusion of up to $250,000 of profit in a home sale for singles; up to $500,000 for marrieds.
• Home improvements done for medical reasons, such as elevators, spas, swimming pools (to extent property value isn’t increased).
• Home-office expenses (strict requirements – get the specific rules).
• Mortgage points paid on new home loans

Investment Deductions

• Fees for investment advice.
• Retirement account fees, if paid separately.
• Worthless investments.

Other Deductions

• Alimony is deductible; child support is not.
• Casualty and theft losses.
• Earned income credit for low-income workers.
• Gambling losses up to the amount of winnings.
• Medical expenses of a parent for whom you provide over 50% support.
• Retirement plan contributions if you qualify.

Work Deductions

• Child care costs while you work or go to school.
• Employment agency fees.
• Job counseling fees.
• Job hunting travel and telephone expenses.
• Job related moving expenses.
• Job skill improvement classes, including travel to them.
• Professional journals.
• Resume preparation costs.
• Small tools used at work.
• Special clothing worn on the job.
• Union or professional association dues.

Additional Deductions to Consider

• To deduct disaster loss in year of disaster or prior year.
• To elect S corporation status for your closely help corporation.
• To file joint or separate returns (especially where one spouse has large medical expenses).
• To forego the net operating loss carryback.