Re: [CANSLIM] Deduction Subject to 2% Limit

From: "Robert Gammon" <rgammon51@yahoo.com>
Subject: Re: [CANSLIM] Deduction Subject to 2% Limit
Date: Wed, 23 Jul 2003 07:23:22 -0500 (CDT)

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This is the prespective of a tax guy.

Itemized Deductions consist of the following primary deductions

1.  State income taxes
2.  Mortgage Interest - not the whole payment, just interest, and 
rent is excluded.
3.  Real Estate taxes paid in the tax year (gotta pay it in 2003 
to take it as a deduction in 2003).
4.  Charitable contributions - keep your receipts!!

Once you have added these up, then if your trading expenses 
exceed 2% of AGI, you get to add in the surplus over 2% of AGI to 
these deductions.  For Investment Expenses, see www.irs.gov to 
see WHAT items can be included in Miscellaneous Deductions.

Robert Gammon
Houston, TX

On Wed, 23 Jul 2003 08:16:34 -0400, Hong Hsu wrote:

>    Gene,  Thanks.  
>
>Does anyone use Schedule A to tax return 1040 here.  What is 
your first 
>two big chunk of deductions on Schedule A?
>
>-Hong
>
>
>Gene Ricci wrote:
>
>> Hong, if you don't have enough deductions to itemize, I doubt 
that 
>> deducting investment expenses in excess of 2% will make the 
difference....
>>  
>> *assuming your adjusted gross income is $50,000
>> *the 2% limit means that you must have expenses greater than 
0.02 x 
>> $50k or $1,000
>> *if you subscriptions cost you $1100 per year, only $100 is 
deductible...
>>  
>> I doubt that partial mortgage/rent is deductible unless you 
are 
>> classified a trader.
>>  
>> Gene
>>  
>>
>>     ----- Original Message -----
>>     From: Hong Hsu <mailto:honghsu@bellatlantic.net>
>>     To: canslim@lists.xmission.com 
<mailto:canslim@lists.xmission.com>
>>     Sent: Tuesday, July 22, 2003 10:10 PM
>>     Subject: Re: [CANSLIM] Deduction Subject to 2% Limit
>>
>>        Gene and Mike,
>>
>>        I got a dumb question.  Even you can put IBD 
subscription and
>>     breakoutwatch.com online service fee into Schedule A as 
investor,
>>     is it
>>     worth to give up Standard Deduction?  For married filling 
jointly,
>>     the
>>     standard deduction is $7,850.   Can you put partial of 
your
>>     mortgage or
>>     rent onto Schedule A as investment expenses?   If not,  
what is big
>>     chunk of miscellaneous itemized deduction? 
>>
>>     I have no intention to knowing your expenses.  I am just 
curious
>>     is it
>>     worth to use Schedule A.    I maybe wrong.
>>     -Hong
>>
>>
>>
>>
>>     -
>>     -To subscribe/unsubscribe, email "majordomo@xmission.com
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>>
>
>-- 
> <Linux kernel:>< As a computer I find your faith in technology 
amusing.
>
>
>

Robert Gammon
Houston, TX


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