MGMT 127A Lecture Notes - Lecture 5: Itemized Deduction, Home Equity, Municipal Bond
Document Summary
Itemized deductions (these all go on schedule a: gmiccisme: gimick kiss me. Get to keep gimick, kissme is scheduled to phase out (will make sense later: g: gambling losses. Limited to your winnings- you cannot deduct more than you win. So if you win 1 million dollars and later you lose 1. 2 million, then you can only deduct 1 million. If you lose more than you win, you wont be taxed on your winnings. So if you lost 1. 2 million but never won anything, then it is just gone and isn"t tax deductible. Personal expense- follows our general rule: m: medical expenses. Deductible to the extent that they exceed 10% of agi. This is a floor- you have to come over the floor before you gain a single dollar of deduction aka medical expenses have to cost you more than 10% of your agi before you get to deduct them.
