What types of interest payments are tax deductible?

The question of what types of interest payments are tax deductible used to be a simple one, but since 1986, the law governing tax deductible interest payments has become very complicated. The general rule is that interest payments are tax deductible, but there are many exceptions to consider when filing taxes.

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What are miscellaneous itemized deductions?

The overall limitation on miscellaneous itemized deductions, captured on Schedule A, based on your adjusted gross income, no longer applies in 2018 because of the 2017 Tax Cuts and Jobs Act. However there may be other limitations that impact the amount you can claim.

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What types of deductions are available on a personal income tax return?

There are four main types of deductions available on your pesornal income tax return: business deductions, above-the-line deductions, itmemized deductions, and the standard deduction. Business deductions are deductions for the cost of operating a business or being self-employed. Above-the-line deductions, on the front page of Form 1040, may be deducted whether you are able to itemize deductions or not. Itemized deductions are deductions that you may use in place of your standard deduction. Standard deduction is available to taxpayers who choose or cannot take itemized deductions.

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What taxes are deductible on a federal income tax return?

There are several kinds of taxes that are deductible, but not all deductions are available for all taxpayers. Most tax deductions are available only on Form 1040. State and local income taxes (or if you elect instead, sales tax), real estate taxes and personal property taxes are deductible if you are able to itemize, on Schedule A.

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Are there other income tax deductions?

Yes, there are other income tax deductions. Examples include depreciation, net operating loss carryovers, start-up expenses, and many others. You should consult you tax advisor to see whether the foregoing, or any other deductions, are applicable in any given income tax situation.

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What falls within the classification of expenses?

This type of expenses deduction includes most expenses in connection with rental property or investment property, such as investment advisory fees, maintenance expenses and repairs of rental real property, and any other ordinary and necessary expense incurred to produce income or to manage, conserve or maintain income-producing property.

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What medical expenses are tax deductible?

Medical expenses are tax deductible only to the extent that they exceed 7.5% of the taxpayer’s adjusted gross income and are not compensated for by insurance or otherwise. According to the IRS, tax deductible medical expenses may include everything from fees paid to doctors to transportation costs essential to medical care.

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