Joseph incurred a number of expenses in relation to his legal practice and investment

property for the year ended 30 June 2010:

_ He paid 0 on 24 October 2009 to his tax agent to lodge his income tax return for the

2009 income year.

_ He paid 00 in borrowing expenses on 1 February 2010 to his bank for a 12 year loan

to purchase a new rental property that commenced earning income on that day.

_ He paid 50 in insurance premiums on his business premises on 1 May 2010 for

insurance cover to 30 April 2011.

_ He paid 00 for six months supply of stationery to use in his business on 13 June

2010. The stationery was delivered on that day and he had 00 of that stationery on

hand at 30 June 2010.

Assuming that Joseph is not eligible to be a small business entity (SBE) what amount can

Joseph claim as deductions (to the nearest dollar) for the year ended 30 June 2010?

A:91.

B:50.

C:50.

D50.

E:92.

So… last minute taxes, coz I’ve been putting it off for fear of the headache I’d get (and am getting).

I’m self-employed, and went through and deducted all business expenses (rent for home office space, computer stuff, stationary, supplies, etc, etc…). I also deducted my insurance premiums as a business expense, but then did other medical expenses as personal expenses.

However, not having many personal deductions, my medical expenses don’t seem to be enough to take any deduction, and being rather poor (oh woe is me) I’d prefer deducting medical expenses as a business expense if I can… can I? And if so, where do I do that? I only see a section for insurance… not misc. medical expenses.

Thankyou so much!!!
Nothing’s paid with credit card… all debit/bank card, and I have the bank records and receipts for everything. No interest. I don’t even have any credit cards.

My medical expenses exceed 7.5%, but it still won’t let me deduct them as those are pretty much the only personal expenses I have (most everything is business, as I work from home, so can deduct portions of utilities, rent, phone, internet, etc…) so I don’t have enough personal expenses total to get any deduction apparently (?).

I don’t make enough for them to bother auditing me… they’d be spending more to audit me than they’d get back (if they got anything back, as I have receipts for everything and they’re all legit).

Basically, all misc. medical expenses are through insurance (what insurance wouldn’t cover, etc…) which IS business, so…???

Ugh.

If anyone could further clarify I’d appreciate it (I realise I’m probably arguing a moot point, but hopefully someone can point that out?)! Thanks!!!
The verdict: taxes are way too confusing. Bah.

Thankyou to those who tried to help! I appreciate it.

I did a bit of sleuthing, and according to "Topic 502 – Medical and Dental Expenses" on the IRS’ website, I CAN deduct misc. medical expenses on " Form 1040, Schedule A". And I did… and it helped a lot. The info is here in case anyone needs it in the future: http://www.irs.gov/taxtopics/tc502.html

Cheers, and thankyou!

Off to the 24 hour post office to avoid the hoards tomorrow (ugh!)!
Kathykoul… thank you, but it’s already been clarified. I checked online (one of the links listed) and out of nervousness called the IRS after sending out my taxes (and was on hold for like an hour) and they verified that I can, in fact, take them as business expenses since I’m self-employed.

Fact – A plan was offered but it didn’t get any press or support by Nancy "do it my way or the highway" Pelosi. Here is a summary of what was offered:

By the way, this took me about 30 seconds to find.

http://www.neighborhoodlink.com/article/Community/Health_Care_Reform_Republican

The Republican Alternative
Republicans in the House of Representatives unveiled a 3-and-a-half page summary of their own health plan, without details or an estimate of costs, but emphasized that their plan would cost less than the Democratic plan.

Key Provisions of the House GOP Plan

States, small businesses, and others could group together to offer lower-cost, health care plans.
Medicaid users could take the value of their Medicaid benefits and transfer them to a private health care plan.
People, especially those in lower income brackets or over 55, would receive incentives to build up health care savings accounts.
Employers would automatically sign up their workers for health insurance, so that employees would have to opt out of coverage if they didn’t want it.
Tax deductions on insurance premiums for people who get their plans individually or from their companies.
Ideas in the House GOP Plan that Are Supported by Both Parties

Dependent children can stay on their parents’ policies until they are 25.
Employers would be encouraged to reward employees for improved health.
Community health centers could be expanded.
Americans can maintain their specific health insurance policies when they lose or leave jobs.
In-home care over institutional care would be encouraged with financial help.
Medical malpractice lawsuits would be limited – though there are significant disagreements between the parties by how much.

http://rsc.tomprice.house.gov/News/DocumentSingle.aspx?DocumentID=140115