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 ... -------------------- Please note that this mail message is likely to be incomplete. The sender aborted the transmission. rhea::MAILER-DAEMON --------------------
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