5 Expenses That Are Not Tax Deductible
5 Expenses That Are Not Tax Deductible.
If you want to keep your tax bill as low as possible it’s always a good idea keep track of expenses that are tax deductible. However, there are many things we pay for each day that isn’t tax deductible even though we’d like them to be. To save you some disappointment at tax time here are five expenses that are not tax deductible.
Although many business related travel expenses are eligible for tax deductions, unfortunately, your daily commute is not. Therefore the money that you spend each day taking a bus, car, train, or taxi to work cannot be used as a tax deduction.
Home improvement costs.
Home improvements are almost never tax deductible. Although some renovation expenses, such as a home office, can be used as a write off at tax time. However, not everyone that has a home office is necessarily eligible for a tax deduction. While home improvements aren’t always eligible for a tax write off, they may increase the value of your home. If that happens you can write off the additional property taxes you’ll pay.
Home insurance payments.
If you own a home you are eligible for many more tax deductions than a non-homeowner. However, your home insurance payment isn’t one of them. Although you can deduct real estate and property taxes, mortgage interest, and even points paid toward a mortgage loan.
Donations made to non-qualifying charities.
Making donations can be very helpful at tax time if you donate to an IRS approved charity. For example, giving money to a friend or family member is a nice gesture but it’s not an eligible tax write off. Be sure the charity you are donating to is IRS approved and gives you a receipt for your donation.
In most cases, a gym membership is not tax deductible. However, you might be able to make a deduction for gym fees if (1) a doctor diagnoses you with a specific medical condition and (2) you use the gym to treat the condition as recommended by a doctor and (3) you did not belong to the gym prior to the doctor’s referral.
If you have any questions about what is (or isn’t) tax deductible contact the financial professionals at USA Tax Prep Plus today!