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Item of Value - 7 Deductions you may have missed

Title Insurance with First American Title

Here is an idea for an item of value or a pop-by with tax time approaching...or maybe even help for the real estate professional.

Every year people pay too much in taxes because they didn't think of donations or even medical expenses that can be deducted.  Read this before you file.

1. Pay off debt with a home equity loan rather than credit cards.- Personal interest is not deductible.  The interest on that loan is deductible and you will likely pay a lower rate than that of your credit card.

2. Contribute old clothes, furniture and other items to charity. - Most people know you get a deduction when you contribute cash to a charity, but did you know that you can deduct the wholesale fair market value of non-cash contributions to qualified charitable organizations.  Just be sure to get a receipt.  You can also deduct your mileage if you use your car for charitable purposes. 

3. Bunch your deductions. - Many deductions require you to overcome a "floor" or minimum.  When you are bunching medical bills for example, look to see if there are others you can take now rather than waiting until next year.

4. Don't forget about those investments. - Investment expenses are also allowed as miscellaneous deductions.  Consider these expenses: investment publications (buy a subscription rather than buying at the newsstand), payment for investment advice, calls to your broker, and possibly even your computer.

5. Business supplies or business-related gifts - Pens, paper, calculator, computer, and maybe even a briefcase can be deductible.  In order to use business supplies as deductions, you need to relate the item to your business.

6. Tax planning advice is deductible - Tax preparation fees can be deducted as business expenses.

7. Self-employed owner can deduct the costs of hiring their children - Hire your children.  Make them earn their allowance with your business.

Wendy Torres
CENTURY 21 Mulvey Real Estate - Yorktown Heights, NY
I like the tax deduction for hiring the kids. It's a good tip.
Feb 13, 2008 10:56 AM
Dwayne West
Atlanta Real Estate - Canton, GA
Canton Georgia Real Estate
Thanks for getting these deductions out to us. I need all of them I can get.
Feb 13, 2008 10:58 AM
Sean Allen
International Financing Solutions - Fort Myers, FL
International Financing Solutions

Great list. If people only knew or paid attention to how to organize their expenses, they could realize much larger tax deductions every year.

Sean Allen

Feb 13, 2008 10:59 AM
Shannon Jones
The Shannon Jones Team - Long Beach, CA
Long Beach CA Real Estate
Thanks for passing those along! Do you send those to your clients via email or mail? Do you get many responses?
Feb 13, 2008 11:08 AM
Patricia Aulson
Realtor - Portsmouth NH Homes-Hampton NH Homes

Thank you for the great list of deductions.


Patricia Aulson/   Hampton NH Real Estate  

Feb 13, 2008 11:22 AM
Frances C. Rokicki
Fran Rokicki Realty, LLC - Bolton, CT

If you are self-employed, you can deduct your health insurance cost.  Just thought I would mention that, in case.  Remember, also, one pair of boots per year, as a real estate professional.

It's a Good Life!


Feb 13, 2008 12:28 PM
Vicki Bishop GRI - Alabama Real Estate
Coldwell Banker United Realtors® - Bay Minette, AL
Hey thanks for the tips , can use all the help i can get.
Feb 13, 2008 12:32 PM
Colleen Fischesser Northwest Property Shop
NextHome Experience - Chelan, WA
A Tradition of Trust in the Pacific NW since 1990!
Dawn, you jumped right in...nice job :-)
Feb 13, 2008 04:28 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
Timely post. I was talking to an agent the other day and she said there are some agents who do not have enough income in 2007 to take all the deductions.
Feb 13, 2008 09:54 PM