This is the time of year millions of Americans begin pulling out receipts to start compiling their tax deductions before the April 15th deadline. People deduct the strangest items, but some are actually tax deductible, including:
A GLUTEN-FREE DIET:
Gluten-free foods are averaging around 242% higher in price than the ordinary counterpart. The additional expense of going gluten-free can be a legitimate tax deduction. If you have a recognized disease where gluten-free foods help your health condition, backed by a certificate from your doctor, you may be able to take that amount as a tax deduction. Celiac disease, for example is a true diagnosed intolerance to gluten that causes the person severe gastrointestinal symptoms and can increase their risk for cancer.
So, if you’re one of those whose diet must be gluten-free, save your receipts, including receipts for any shipping of the items to your home, get that note or certificate from your doctor and start writing off the extra cost of buying the gluten-free items. Foods that contain xanthan gum and sorghum flour can be fully deducted because they have no gluten-filled alternative.
Don’t forget, all medical expenses must exceed 10% of your gross adjusted income or 7.5% for people older than 65. The IRS sanctions medical dietary costs as a deduction as published in their information letter, #2011-0035 that states: “The excess cost of specially prepared foods designed to treat a medical condition over the cost of ordinary foods which would have been consumed but for the condition is an expense for medical care.”
If you live and work in the same place such as living above your business, you can deduct your repairs, utility bills and your lawn care. You must meet the IRS requirement in order to claim your home is also your workplace. If your business or office occupies a portion of your home, such as 10% – you can only deduct 10% of the repairs, utilities and lawn service. In order to deduct lawn service, the IRS wants you to demonstrate your lawn has some relevance to the performance of your business. If you own a lawn service, you can deduct all your landscaping and lawn service costs.
SUVs, such as a Chevrolet Silverado or Ford F Series, must be over 6,000 pounds in order to claim the vehicle as a tax deduction for its full purchase price. The IRS started this rule originally intended for small farmers who purchased heavy machinery. The rule has changed to stop self-employed professionals (like a doctor) from taking advantage of it. Now you must file a corporate tax return in order to claim this deduction.
While they seem silly, every tax deduction counts. Why are tax deductions so important? Tax deductions are used to decrease your taxable income. The less income you make, the less you owe the IRS. Therefore, tax deductions decrease the amount you pay the IRS in taxes. Many Americans choose to do their own tax deductions. However, a tax attorney will make sure that you have the absolute lowest tax liability - by using tax strategies to maximize your deductions, utilize all available tax credits, and more.
If you have questions regardings tax law, tax deductions, or need a tax attorney, contact Gantenbein Law Firm at 303-618-2122. Our offices are located in Denver, Colorado.