Miscellaneous Deductions on Your Personal Tax Return
Monday, May 14th, 2012Duluth/Gwinnett CPA: Miscellaneous Deductions on Your Personal Tax Return
Depreciation on Home Computer
If your home computer is used to produce income then you can claim and deduct depreciation on it. In most cases, you will have to use the straight line depreciation method instead of the Alternative Depreciation System. But if you work as an employee and also use the computer for your work check Publication 946. Generally this would be deducted as part of a home based business/S Corporation or would be a necessary and required expense of your employer and deducted on IRS Form 2106.
Fees to Collect Interest and Dividends
Fees that you pay to a broker, bank, trustee, or similar agent to help collect your taxable bond interest or dividends on stock can be deducted. Payments made to brokers to buy investment property cannot be deducted. The cost of the fee must be added to the property basis.
You cannot deduct amounts paid to a broker to sell securities. The fee can only be used to calculate gain or loss based on the sale.
Hobby Expenses
Most hobby expenses can be deducted but usually only up to the amount of the hobby’s income. Hobbies are not businesses because they are not carried out to make a profit. Publication 535 has more information on Hobbies and related information.
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