Heads up! Itemized Deductions May Be Ahead

Year end may seem far away. But now’s a good time to start looking ahead to what itemized deductions you may be able to claim for the 2016 tax year.

Following is a list of selected deduction and exclusion items to consider. Don’t use the list as a tax planning worksheet. Rather, think of it as an exercise to help with your tax planning efforts and a good conversation starter for the next time we visit. Bear in mind that various limitations may apply to the items listed.

Deductible Unreimbursed Employee Expenses

  • Business travel expenses.
  • Business education expenses.
  • Professional organization or chamber of commerce dues.
  • License fees.
  • Impairment-related work expenses.
  • Depreciation on home computers your employer requires you to use in work.

Deductible Money Management Costs

  • Tax preparation fees.
  • Depreciation on home computers used to produce investment income.
  • Investment interest expenses.
  • Dividend reinvestment plan service charges.
  • Loss of deposits due to financial institution insolvency.

Deductible Personal Expenditures

  • Income, real estate and personal property taxes (state, foreign and local).
  • Medical and dental expenses.
  • Qualifying charitable contributions.
  • Personal casualty and theft losses.

Income Excludable From Taxable Income

  • Health and most life insurance proceeds.
  • Military allowances and veterans benefits.
  • Some scholarship and grant proceeds.
  • Some Social Security benefits.
  • Workers’ compensation proceeds.

Please contact Martini Iosue & Akpovi, LLP by phone at (818) 789-1179 if you have any questions or want more information.

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