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 08:45:11 -0500 (CDT)

Next Article (by Date): Re: [CANSLIM] Deduction Subject to 2% Limit "Charles & Lois Layne"
Previous Article (by Date): Re: [CANSLIM] Selling - Emotional Attachments. "Charles & Lois Layne"
Top of Thread: Re: [CANSLIM] Deduction Subject to 2% Limit Hong Hsu
Next in Thread: Re: [CANSLIM] Deduction Subject to 2% Limit "Charles & Lois Layne"
Articles sorted by: [Date] [Author] [Subject]

On Wed, 23 Jul 2003 07:32:02 -0400, Charles & Lois Layne wrote:

>
>----- Original Message -----
>
>>
>>    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?
>>
[snip]
>
>As stated, sched A is useful only to the extent that total itemized
>deductions exceed the standard deduction.  If that's the case, then by all
>means, try to capture all legitimate expenses - even those subject to a
>limit such as out of pocket medical expenses.  Sched A is also useful if one
>is using a filing status that disallows the standard deduction (married
>filing single, I believe) or if the taxpayer elects not to take the standard
>deduction because of some tax advantage at the state income tax level (not
>usual, but I have heard of it; depends on the state tax laws).

This is called Married Filing Separately.  If one of the two itemizes deductions 
the other MUST also since the Standard Deduction is not available to the spouse 
who would otherwise choose the Standard Deduction.  If neither spouse chooses to 
Itemize Deductions then BOTH can claim the Standard Deduction.

>
>As with all tax issues, contact with a tax professional is always
>recommended for issues that are difficult to resolve.

Tax issues are among the thorniest that we have to deal with.  If you do not 
KNOW the answer, asking a question of a qualified tax professional will usually, 
quickly resolve the matter.  In some cases, the result may be that you choose to 
have a tax pro do your tax return instead of preparing it yourself.



Robert Gammon
Houston, TX


- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.

Go to Jeff Salisbury LWGate Home Page.