The standard deduction
will increase for single or married filing separate taxpayers from $3,070 to $3,165.
Consequently, the Institute commends the IRS for concluding in the proposed regulations that in appropriate cases charitable contribution deductions
can be definitely related to a class of gross income.
is the general rule, but there are exceptions.
Outside of the two-year window, the taxpayer must take a taxable distribution from the IRA and report the income; a donation is reported as an itemized deduction
subject first to the charitable deduction
limits, then to the itemized deduction
Individuals can take an itemized deduction
for casualty losses to property not connected to a trade or business.
The bottom line is that the 2018 standard deduction
has a greater chance of exceeding your 2018 itemized deductions
Know the rules for taxation of state income tax refunds: Historically, the tax benefit rule has caused a refund of state income taxes deducted in a prior year to be taxable to the extent that itemized deductions
that year exceeded the standard deduction
The punitive component is included in gross income and any allocated legal fees and court costs are deductible as miscellaneous itemized deductions
under IRC section 212 as expenses incurred in the production of income.
"As recently reported by the IRS, the amount claimed as deductions
in tax year 2003 for clothing and household items was more than $9 billion.
In addition to subtracting CGS from DPGR, in determining its QPAI, a taxpayer must also subtract deductions
that are directly allocable to DPGR, and a ratable portion of deductions
that are not directly allocable to DPGR or to another class of income.
If your deductions
add up to a disproportionate share of your income, you, like the Gordons, could be hit with the AMT.
The 2003 CRF study: Customer Deductions
, Impact on Receivables confirms that short payments continue to be a significant challenge for many companies.