[net.legal] Deduction for Safe Dep. Box

merrill@raja.DEC (01/09/86)

>Subject: Re: Safe Deposit Box deduction
> 
>> you can deduct the cost of a safe deposit box if you use it for important
>> papers such as your tax forms.  
> 
>Sorry, but the IRS does't qualify any personal effects like important papers
>unless the papers are held for the production of income.

	Actually, the IRS allows deductions for expenses occured 
	in FILING TAX RETURNS!  This means that if your "important
	papers" includes tax records then it is deductable!

Rick Merrill

Tinker, Tailor, Lawyer ... 

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smh@mhuxl.UUCP (henning) (01/11/86)

> >> you can deduct the cost of a safe deposit box if you use it for important
> >> papers such as your tax forms.  
> > 
> >Sorry, but the IRS does't qualify any personal effects like important papers
> >unless the papers are held for the production of income.
> 
> 	Actually, the IRS allows deductions for expenses occured 
> 	in FILING TAX RETURNS!  This means that if your "important
> 	papers" includes tax records then it is deductible!

Gee, my safe deposit box doen't know how to file tax returns, it only stores
them.  How do I get one of those other kind?

Actually what the IRS says is: Fees charged for preparation of tax returns
are deductible.  However, rulings have determined that the cost of tax
advice is also deductible, but incidental expenses like the costs of checks
used for tax records and safe deposit boxes used for tax records are NOT
deductible.

wouk@duke.UUCP (Arthur Wouk) (01/14/86)

The expense of a safety deposit box used for the storage of financially
valuable items, such as stocks, bonds, certificates of deposit,
is a legitimate deduction under the miscellaneous deductions item on
Forms A&B. This deduction bears no relation to the deduction
for assistance in the preparation of tax returns, but is related to an
expense incurred in the production of income.


In article <456@mhuxl.UUCP> smh@mhuxl.UUCP (henning) writes:
>> >> you can deduct the cost of a safe deposit box if you use it for important
>> >> papers such as your tax forms.  
>> > 
>> >Sorry, but the IRS does't qualify any personal effects like important papers
>> >unless the papers are held for the production of income.
>> 
>> 	Actually, the IRS allows deductions for expenses occured 
>> 	in FILING TAX RETURNS!  This means that if your "important
>> 	papers" includes tax records then it is deductible!
>
>Gee, my safe deposit box doen't know how to file tax returns, it only stores
>them.  How do I get one of those other kind?
>
>Actually what the IRS says is: Fees charged for preparation of tax returns
>are deductible.  However, rulings have determined that the cost of tax
>advice is also deductible, but incidental expenses like the costs of checks
>used for tax records and safe deposit boxes used for tax records are NOT
>deductible.

pld@cantor.UUCP (Peter Dordal) (01/17/86)

> 
> >Subject: Re: Safe Deposit Box deduction
> >> you can deduct the cost of a safe deposit box ....
> >Sorry, but the IRS does't qualify any personal effects like important papers
> >unless the papers are held for the production of income.
> 
My understanding is that the IRS rarely if ever questions a safe deposit
box deduction, because if you deduct it then you are admitting that you
have one.  Since the IRS likes to know about boxes, and since rental fees
are rarely more than $50 (unless the box contains more than papers, in which
case it's not deductible), they consider it a fair trade.  I read about this
in one of those "ex-IRS officer reveals secrets" articles [in a reasonably
credible publication].

Moral: if you keep the undeclared $800,000 you made last year in a safe
deposit box, don't deduct the rental.

		peter dordal, loyola univ. of chicago math dept.
		...ihnp4!gargoyle!cantor!pld