If T uses a home equity loan instead to purchase the vacation home, the interest would be deductible as an itemized
deduction rather than a rental expense (assuming T has no other home equity interest expense and he does not elect out of the home equity debt treatment).
The ALJ reasoned that the ordering convention resulted in a double disallowance of the taxpayer's itemized
deduction for state and local income taxes because it required the add back of the entire amount of state and local taxes although the Federal deduction had already been limited by the IRC section 68 limitation.
If your itemized
deductions hover around the same level as the standard deduction, "bunch" or aggregate deductions in a year that you itemize and take the standard deduction the following year.
In NOL creation years, a taxpayer's AGI is usually low; consequently, itemized
deductions subject to an AGI floor are generally more fully deductible than would normally be the case (e.
The amount of the reimbursement is not included in income and there is no AMT adjustment for the related expenses since they are not deducted as miscellaneous itemized
A theft loss is excluded from the phase-out of itemized
deductions required by Sec.
63c(6)(A) says that if one of them uses itemized
deductions, the other one has a zero standard deduction.
Unfortunately for taxpayers the law treats the deduction as a miscellaneous itemized
deduction subject to the 2% of AGI floor.
7) If the loss does not meet one of these criteria, it is deductible as a miscellaneous itemized
Between 1990 and 2001, the number of tax returns claiming itemized
deductions increased by 38.