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Gary Davis CPA
Jun 13, 2005 - 11:05AM
Re: Re: maximum on itemized deductions

One addition to Andrew's comments. Your level of income can have a dramatic effect on the benefit you can get from Miscellaneous Itemized Deductions. We have a physician who makes about $400,000/year. On Schedule A, he gets a $32,000 Miscellaneous Itemized Deduction for all his unreimbursed business expenes.

The problem is that he is subject to the Alternative Minimum Tax. Consequently, he get NO BENEFIT what so ever for his $32,000. If his business expenses were $-0-, his total tax doesn't change a dime. The mix of his regular tax and the AMT tax changes, but not the total.

Good luck!

Gary

Zip Code: garyd@davisandbrandel.com

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