8 Random Tax Breaks You Don’€™t Want to Miss April 9, 2013My MoneyOff

We’re always hearing about people who make great money but pay little in taxes; people who learn the system so they don’t miss out on deductions.

All can’t be left up to your tax professional.

“If your tax preparer doesn’t know you very well and only sees you once a year, they are not going to know you may be entitled to certain deductions,” says Maggie Mayer, CPA and owner of Mayer & Associates.

She offers a quick hit-list of obscure deductions often overlooked or neglected.

Subscriptions to professional journals can be written off as business expenses.

Hairstyling, manicures and pedicures also may qualify as business expenses, especially if you’re in an industry like modeling where looks are at the forefront.

Out-of-pocket expenses for gas or event decorations involving non-profits are forms of donations and can be written off.

Job-hunting can become costly when you’re driving around town to interview, which is why some expenses are eligible for deduction.

Legal fees in connection with incurring or obtaining alimony. Since alimony is considered taxable income you can deduct the portion of your attorney’s fees that pertain the obtaining or collecting alimony.

Investment advisory fees. You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. These are deducted as miscellaneous itemized deductions on Schedule A, and are subject to a 2% limitation.

“Some deductions can be taken only once in a while,” adds Rebecca Pavese, CPA and head of the tax practice at Palisades Hudson Financial Group. “Another reason some are easy to miss.”

Moving expenses, for instance.

“You may be able to deduct qualified moving expenses if you moved because of a change in your job location or because you started a new job.”

And, if you were feeling “green” last year?

“Taxpayers who donated capital-gain real property for conservation purposes in 2012 – usually by putting a conservation easement on it-can deduct the contribution up to 50 percent of their adjusted gross income.”

Bonus PINK Link: Are your taxes getting out of hand?

Have you taken advantage of little known tax breaks?

By L. Nicole Williams

Nicole is the Editor at Little PINK Book. Follow her on Twitter @iamnicwill.

“A woman’s best protection is a little money of her own.” Clare Boothe Luce

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