Tax Deductions List

The following checklist is a fairly comprehensive listing however it is not an exhaustive listing.  The fact that an item is not on the list is not indicative that it cannot be deducted!

  WARNING! Simply finding a deduction on the list does not indicate that you are entitled to that deduction.  The tax law generally requires that you meet specific qualifications before you take the deduction.  You must seek professional advice before you claim the deduction on your tax return.

A

Abandonment of business real property

Accident and health plans

. employer contributions

Accounting fees

. business costs

. capital transactions

. connected with trade or business

. investors

. organization of business

. reorganization of business

Accounting system, installation

Administrative expenses of estate

Admissions to political dinners, programs, inaugural balls,

Advertising expenses

. business cards

. catalogs

. . long term

. generally

. home demonstrations

. political convention programs and other political publications

. prizes and contests

. promotional activities

Airline pilot, special clothing

Alcohol fuels credit, unused

Alimony payments

Amortization of premium on taxable bonds (optional)

Architect's fees (capital expenditure)

Attorney's and accountant's fees in contesting tax claims

Attorney's fees

. accounting suit by former partner, defense of

. acquisition of corporate control

. bankruptcy claims filed by business creditors

. breach of promise suit (personal)

. business debts, collection of

. condemnation proceeding, defense of

. disbarment proceedings

. divorce

. . proceedings

. . property settlement

. personal affairs

. slander prosecution

. title clearance

. . land

. . stock

. title registration

. will preparation

Automobile expenses

. business use by employee

. . unreimbursed

. business use by self-employed person

. . chauffeur's salary

. . cost of car

. . garage rentals 

. . gas 

. . insurance

. . license fees

. . loss on sale

. . oil and lubrication

. . parking

. . repairs

. . tires

. . washing

. nonbusiness casualty loss

. pleasure use

B

Bad debts, ¶10,550.01

. business

. nonbusiness

Bar examination fees

Baseball player's uniforms

Baseball team equipment for business publicity

Black lung benefits trust, employer contributions

Bookmakers, business expenses

Building replacements (capital expenditure)

Burglar alarm system, cost of installing (capital expenditure)

Burial expenses

Business bad debts

Business conventions

. cruise ship

. foreign conventions

. political conventions (must be related to trade or business)

. travel expenses

Business expenses

Business meals

Business startup expenses

C

Campaign contributions

Capital expenditures

Capital loss

Car expenses (see "Automobile expenses")

Career counseling costs

Caribbean convention expenses (business)

Carrying charges deductible as interest where installment sales contract states carrying charge separately

Casualty losses, personal, deduction limited to amount of each loss in excess of $100 and then only to the extent losses exceed 10% of adjusted gross income

Charitable contributions

. business-connected generally

. individuals

. where organization carries on lobbying activities

Child support payments (if fixed in divorce decree)

Circulation expenditures, newspapers, magazine periodicals

Clinical testing deduction if credit is elected

Club dues (business)

Coal royalty contracts, expenses related to, if there is no production, or no income, under contracts

Commercial fishing boat crews, members' protective clothing

Commissions

. paid as compensation

. paid to obtain tenants

. sale of real estate or securities

. . dealers

. . other taxpayers

Commissions on sale of real estate and securities, dealer only (other than taxpayers deduct from selling price)

Commuting expenses

Compensation, reasonable

Computer software

. development costs

. leased software, business use

Contributions by employer to employer-financed accident and health plans for benefit of employees

Contributions by employer to state unemployment insurance and state disability funds

Contributions by members to a labor union

Contributions paid by employer to employees' trust or annuity plan

Contributions paid (within certain limits) during year to charitable, etc., organizations

Convention (political) programs, cost of advertising in

Conventions (see "Business conventions")

Cooperative housing corporation, taxes or interest paid to

Copyright costs

Cost recovery, business property or property held for the production of income

Cruise ship business conventions

Custodian fees

D

Defending title to property (capital expenditure)

Demolition of historic structure

Dependents

Depletion

. sulphur

Depreciation, business property or property held for production of income

Diaper service

Disbarment proceedings, attorneys' fees and expenses in defending 

Doctor's staff privilege fees at hospital (capital expenditures)

Dues

. chamber of commerce

. charitable, religious, educational organizations

. clubs organized for business, pleasure, recreation, or any other social purpose   G:6.182

. fraternal organizations, business related

. professional associations

. union dues

E

Education expenses (employee)

. maintaining or improving required skills

. minimum requirements for job

. new trade or business

Educational assistance plan payments

Efficiency engineers' cost of business

Employee's expenses

. entertaining customers

. . reimbursed expenses

. . unreimbursed expenses

. meals and lodging away from home

. . reimbursed

. . unreimbursed lodging

. . unreimbursed meals

. move to a new work location

. transportation expenses

. . unreimbursed

Employees' life insurance, paid by employer

. employee beneficiary

. employer beneficiary

Employees, payments for injuries, not compensated by insurance; disability benefits

Employment, fees for obtaining

Employment taxes

. employer's payment under Federal Unemployment Tax Act

. . employer (but not deductible if paid on wages of domestics)

. employer's taxes under Federal Insurance Contributions Act

. . employer (deductible only as business expense)

. employer's taxes under Railroad Retirement Act

. . employer (deductible only as business expense)

. Federal Unemployment Tax Act

. Railroad Retirement Act

. Railroad Unemployment Insurance Act

. . employer or employee representatives on whom imposed

. Social Security Act

Entertainment expenses (business, nonemployee)

. athletic club visits

. cocktail parties

. facilities

. . available to public . . owned and used by the taxpayer

. food

. . furnished to employees on premises

. . meals directly related to business

. provided for customers

Environmental impact statement, preparation of

Estate tax

Excess deductions on termination of estate or trust

Excise taxes on personal goods

Expenditures violating public policy

F

Farmers, expenses for

. fertilizers, lime, etc.

. land clearing, nonroutine

. soil and water conservation

Federal income tax  A:15.81

Federal National Mortgage Association

. first buyers, excess of issue price over market value on date of issuance

. sales to, by mortgage dealers

Fee paid to publishing company for materials on establishment of family estate trusts

Fiduciaries' fees

Finance charges other than carrying charges or loan fees (limited)

Financial counseling fees

. dealer

. investor

. trader

. . business

. . nonbusiness

Fines and penalties

. child labor violations

. Fair Labor Standards Act awards

. federal income tax penalties

. generally

. NLRB awards

. overweight or over-length trucks

. violations of law ......................................................................ND, G:6.341

. Walsh-Healey Act awards

Firefighter

. meals and lodging on overnight duty at station

. rubber coat, helmet, boots, etc.

Foreign conventions (with limitations)

Foreign taxes (unless taken as credit)

. by payor

Forfeitures

. business transactions

. . advance payments

. . lease deposits

. . purchase price

. interest

. . premature withdrawal from time savings account 

Fringe benefits

. employee-related costs of employer

Funeral expenses

Furnishings and fixtures, business cost

G

Gambling losses (limited)

Gift tax

Gifts (business), but limited to $25 per donee per year

Gifts to employees

. awards for length of service (limited)

. gifts valued above $25

. gifts valued at $25 or less

Gifts to individuals

Golden parachutes

. excess parachute payments

. parachute payments

Golf course

. maintenance and operating costs

. original construction

H

Handicapped

. impairment-related work expense

Hobby losses

Home office (limited)

House rent

Husband to wife, allowance paid as housewife's salary

I

Illegal business, legitimate expenses

Illegal drugs

Impairment-related work expenses for handicapped

. attendant care services at work

. necessary expenses at work

Import duties (unless as a business expense)

Improvements made by lessee, depreciation and amortization

Income tax (state)

Income tax liability, cost of determining

Income tax returns, cost of preparing (non-business)

Individual retirement account, contributions (limited)

Infringement litigation in course of business

Inheritance tax

Injuries to employees, payments for, not compensated by insurance 

Insurance expenses

. business

. . casualty

. . malpractice

. individual (see also medical expenses heading)

. insured employees

. . employee or other beneficiary

. . employer beneficiary

. . group-term life insurance

. . key employees

. personal residence

. required for credit

. . premiums paid by creditor

. . premiums paid by debtor

Intangible assets (as defined in Code Sec. 197)

Interest and carrying charges related to a commodity straddle position in excess of income generated by straddle position

Interest, except on indebtedness incurred or continued to purchase or carry tax-exempt securities or single premium life insurance, endowment, or annuity contracts, and except on loan to overpayment of substantial number of premiums on a life insurance or annuity policy

. personal obligations (limited)

. points, purchase of residence

. prepaid

. property held for production of rent or royalties

. trade or business debts

Interest forfeiture

. premature withdrawal from time savings account

Investor's expenses (except incurred in earning tax-exempt interest)

J

Job hunting expenses

. new trade or business

. resume preparation costs

. same trade or business

. travel and transportation to new area

Jockey's riding apparel

K

L

Labor union dues

Laundry, dry cleaning, pressing charges, business travel

Legal expenses and fees

. business

. investors

. production of income

. tax determination

Legislators

. congressional living expenses, away from home

. . expenses of moving to capital

. state

. . local transportation

. . meals and lodging

. . travel expenses

License fees

. treated as personal property tax

Life insurance premiums, paid by employer,

. employee or other beneficiary

. employer beneficiary

Lobbying expense

. appearances before legislative bodies

. expenditures to influence voters

. professional lobbyist's expenses

Losses

. gambling or wagering, limited

. net operating loss

. sale or exchange of property

. . business property

. . capital assets

. theft or casualty

. . individual property

. . rent- or royalty-generating property

. worthless stock and securities

Lucky number contest, cost of prizes

M

Machinery

. incidental repairs

Materials and supplies, business

Meals, employees' business

. reimbursed

. state troopers

. unreimbursed

Medical, dental and hospital expenses (to the extent exceeding 7.5% of adjusted gross income) (for a detailed please refer to the separate list for medical expenses)

Medical, dental and hospital expenses less than 7.5% of adjusted gross income

Medical insurance premiums

Mine development expenditures

Mine exploration expenditures

Mortgage insurance premiums (FHA mortgage) paid by mortgagor--property not used in trade or business or held for production of income

Mortgage prepayment penalties

Moving expenses

. employee, reimbursed

. . meals treated as compensation not subject to withholding

. . meals treated as compensation subject to withholding

. . other moving expenses

. employee, unreimbursed

. . meals

. . other moving expenses

. self employed

. . meals

. . other moving expenses

Moving machinery to new plant

Musician's clothing, used exclusively in business

N

National Labor Relations Board award to employees, payment by employer

Net operating loss deduction

New business, cost of starting up

Nonbusiness bad debts

Nontrade or nonbusiness expenses incurred in preserving income-producing property

Nurse's uniform

O

Office in home (limited)

. employee

. principal place of business

Office supplies

Operating loss in prior or subsequent year

Organization expenses of corporation (amortizable over not less than 60 months)

Original construction of greens on a golf course

Outside salesperson

. meals--see Meals, employees' business

. moving expenses--see Moving expenses

. travel expenses

P

Partners' fixed or guaranteed payments for services or for use of capital (allowed as business deduction to partnership)

Partnership organization expenses, unless election to amortize

Passport fee, business trip

Passport fee (except for business purposes)

Performing artists (limitation on gross income)

. employee business expenses

Permanent improvements

. business property

"Points" on home mortgage (if customarily required in geographic area in which indebtedness was incurred)

Police officer's uniform and cost of cleaning

Political contributions

. corporations, businesses, etc.

. individuals

Political publications, cost of advertising in

Postage costs, business

Premiums paid on a business insurance "professional overhead expense disability policy"

Prepaid interest or finance charges

Prepaid legal services plan

. employer contributions before 1992

Prizes and contests--see "Promotional activities"

Professional associations, dues

. unreimbursed employee expense

Professional books and journals

. unreimbursed employee expense

Promotional activities

. prizes and contests

Protective clothing

Q

R

Raffle tickets, cost of

Railroad retirement tax on employees

Railway trainman's uniform

Reconditioning and health-restoring expenses of employees paid by employers

Reforestation costs

Refuse removal

Reimbursed expenses (otherwise deductible)

Removal of architectural and transportation barriers to the handicapped and elderly

Rent, business property

Reorganization expenditures, unless election to amortize (capital expenditure)

Repairs to business property

Repairs to personal residence

Research and experimental expenditures

Research and experimental expenditures connected with a trade or business if amortized

Retirement plans, contributions to

. employer

. individuals

. self-employed individuals

Return, federal or state income tax, gift tax, etc., cost of having prepared (including investor)

S

Safe deposit boxes, rental for jewelry or personal effects

Safe deposit boxes, rental for protection of income producing property

. dealer

. investor

. trader

. . business use

. . nonbusiness use

Salaries

. bonuses

. commissions

. compensation, ordinary and necessary

. related parties

Salespersons' expenses

. reimbursed

. unreimbursed

. . automobile expenses

. . entertaining customers, reimbursed

. . entertaining customers, unreimbursed {50%}

. . gifts to customers (up to $25)

. . membership dues in business or social clubs

. . subscriptions to business, professional or trade publications, if for business reasons

. . transportation expenses, unreimbursed

. . travel expenses  A:11.44

Self-employment tax (limited)

Servants, social security taxes paid for

Shareholder's proxy fight expenses

Social security taxes

. employees

. employers (only as business expense),

Soil and water conservation expenditures, farmers

Stamp tax

. dealers/investors

. trade or business

. transfer of personal residence

Start-up expenditures, business

Subscriptions, professional journals (self-employed)

Supplemental unemployment compensation benefits, repayments by recipients

Surgeon's uniform (employee)

T

Tax penalty payments

Tax refresher course, lawyer's

Tax returns, cost of preparation

. business

. individual

Taxes (Deductible by Manufacturer, Producer, Importer or Corresponding Person, but Not by Consumer)

. automobiles

. cigars and cigarettes

. coal

. distilled spirits

. fermented liquor

. firearms, shells and cartridges

. fishing equipment

. gasoline

. pistols and revolvers

. tires

. tobacco and tobacco products

. wines

Telephone service (unless as a business expense)

Tires, truck used in business

Title costs (perfecting or defending title to property, including costs of defending condemnation proceedings) (capital expenditure)

Tools, useful life of one year or less

Trade or business expenses (securities dealers and traders)

Trademark and trade name expenditures

Transfer taxes

. business property

. personal residences

. real property

Travel expenses (employees)

. commuting expenses

. reimbursed 

. unreimbursed 

. . baseball players (including meals and lodging) while away from "club town," also other business expenses at "club town" if tax "home" in a different city

. . business trips

. . clergymen, church conventions travel, meals and lodging away from home

. . commercial fishing boat crew members, for travel, meals, and lodging away from home port

. . congressmen, up to $3,000 of living expenses

. . expenses of traveling from principal place to minor place of business

. . government employees, expenses in excess of per diem allowances

. . lawyers

. . meals, reimbursed

. . meals, unreimbursed50%

. . physician, medical conventions

. . railroad employees' meals and lodging while away from "home terminal"

. . salespersons

. . teachers, scientific meetings and conventions

. . truck drivers' (long line) meals and lodging while away from "home terminal"

Truck tires with life less than a year

Truck use tax (unless as business expense)

U

Uncollectible notes

. business 

. nonbusiness

Uniform and special clothing costs

. baseball uniforms

. clothing required for business

. employer-reimbursed costs

. jockey's riding apparel

. nurses' uniforms  A:11.100

. protective clothing  A:11.100

. work shoes, metal tipped

Union payments

. dues

. fines

Utilities, business

Utilities, personal

V

W

Wages and salaries

Waiters, waitresses

. special uniforms

Work shoes, metal tipped for protection of worker

X

Y

Z