What purchases can be deducted from your taxes?

Answer 1

There is a long answer to that question. Here is a brief answer:

Healthcare expense over 7% of your AGI.
Mortgage expense
Expenses and depreciation associated with generating investing or business income, but there are exclusions
Some home insulation products
Charitable donations
State income taxes, personal and real property taxes
Uninsured loss from theft or bad loans, with some limitations
Maintenance (a/k/a alimony)
some IRA contributions
realized investment losses
gambling losses offsetting reportable gambling wins
expense associated with tax preparation

I am probably missing some categories, but those are some of the major ones. Bear in mind that itemized deductions have to be more than your standard deduction, or they don't produce any benefit.

Answer 2

Taxes are based on income and income is the remainder after expenses have been paid. Income, to the IRS is all income which isn't specifically excluded by Congress in the Internal Revenue Code. Needless to say, just about everything is taxable. For most types of income you have, there are offsets that can and should be used. If you operate a business, you are taxed on the net income of the business which is the revenues minus the reasonable expenses to operate the business. If you sell stock, you are taxed on the proceeds less the amount you paid for the stock and the costs of unloading the stock. Everyone is entitled to the "itemized deductions" listed in one or so of the other responses. You are also entitled to deduct alimony, moving expenses, your IRA, as well as several other costs you might have incurred. In some cases you can deduct your living costs and the trade/business use of your private vehicle.

Answer 3

The above answer is pretty good....you can also include your license plate fees, as for the medical part that she said above, this includes....doctor's bills, medical supplies, eyeglasses, dental bills, prescriptions, mileage to and from doctor's, dentist's 'and hospitals.
not expecting the 10 points, just wanted to add to the first answer