By Joe Palumbo III
First off, in 2004 you are allotted a $3,100 deduction for yourself and each dependent. Home improvement is a possible deduction with trees, shrubs and some home beautification qualifying. Dues to professional societies and organizations may be one deduction we tend to overlook. Dues to the Chamber of Commerce, your local boards and/or associations are deductions that are applicable. Even subscriptions to certain magazines and/or periodicals fall into deductible categories.Another interesting deduction you may able to take is commuting to a temporary work site. A work assignment is considered temporary if you have the expectation it will last less than one year and if it does last for a year or less. Casualty and/or theft loss, if it is not compensated by your insurance carrier is another deduction that can be taken if you fall into that category.If you are an employee with business expenses that exceed the amount you are reimbursed by an employer, you can generally deduct them as a miscellaneous deduction, subject to the 2 percent adjusted gross income. Don't overlook what you paid your accountant to file your taxes for 2003 – that is now an applicable deduction in 2004.If you were part of a re-financing and/or loan, then there are also certain tax deductions you may be able to take. If you moved, then under certain distance and time testing criteria you may be able to file a deduction for those expenses outlayed. Medical costs are deductible, however, with cosmetic procedures being excluded. So how's business during tax season? We only touched on the topsoil of many other applicable deductions. One thing I always encourage is ask your CPA questions. When it comes to taxes, it is always better to ask and be safe, than not to and be sorry for it later.Joseph J. Palumbo III is the managing director for the Palco Group Inc. The Palco Group deals in asset management, private finance funding, and business consulting. Palumbo can be reached at palcogroup@aol.com or 718-461-8317, 516-297-4034.
