TOMORROW'S TAX SERVICE

Capture all your mileage for business travel, charitable travel and medical travel. Keep a log book in your car and note the miles to and from the doctor or dentist. Track the miles to drop off charitable donations or to go to and from your charity. This area of deductible expense is often not taken or is poorly captured.

 When in doubt if an item is deductible save the canceled check, the proof of payment and receipt. Without the proof, the expense cannot be taken.

Donations are deductible and not subject to a minimum threshold as with medical expenses or miscellaneous deductions. Keep a list of items you plan to give away.

Put the list next to or inside the bag of items you plan to drop off. The required itemization

of items donated can be prepared when the bag is ready to be dropped off at your favorite charity.

Often during IRS audits, deductions are disallowed because proper documentation

 of the expense is not retained. Keep all canceled checks, receipts and statements related

 to your expenses.

Whenever possible, shift expenses into categories of itemized deductions to

 surpass  the IRS thresholds in a given year.

Example:

You have surgery during th eyear resulting in high medical costs for the year. The IRS 7.5% of income threshold is surpassed, so every incremental medical and dental expense is now deductible. If possible, now is a good time to get eyes check, to get family physicals and to get other medical and dental work completed. Next year you will have to again reach the 7.5% threshold before you can deduct the expense.

 Save all receipts for home improvements even though you may not have to report

 a gain. Many homeowners fail to anticipate their homes' appreciation in value over time.