MGMT 127A Chapter Notes - Chapter 6: Itemized Deduction, Tax Deduction, Casualty Loss
Document Summary
Chapter 6: deductions and losses in general. Deductions are spit into deductions for agi and deductions from agi. Deductions for agi can be claimed whether or not the taxpayer itemizes. Deductions from agi result in a tax benefit only if they exceed the taxpayer"s standard deduction. If itemized deductions (from agi) are less than the standard deduction, they provide no tax benefit. It is important to understand that deductions for agi may directly affect the amount of itemized deductions. The impact arises because many itemized deductions are limited to amounts in excess of specified percentages of agi. For any potential deduction we must first determine whether the item is deductible. If it is deductible, then the we have to determine if it is for agi or from agi. If a deduction is not listed in section 62, it is an itemized deduction, not a deduction for agi.
