Question: If an individual purchases property insurance on business equipment the
If an individual purchases property insurance on business equipment, the premiums are deductible, but if that same individual purchases property insurance on his home, the premiums are nondeductible. Can you explain this inconsistent tax treatment?
Answer to relevant QuestionsMr. Cox is a passionate stamp collector. His collection is so valuable that he keeps it in a safety deposit box in a local bank, which charges him $25 a month. Can he deduct this expense? Mr. and Mrs. Moss, ages 70 and 64, have major medical and dental insurance provided by Mrs. Moss’s employer. This year, they incurred the following unreimbursed expenses: Routine ofﬁce visits to doctors and dentists ...Ms. Queen, age 21, is a full-time college student with an athletic scholarship that pro-vides the following annual beneﬁts: Tuition payment ……………….. $12,800 Fees and books ………………… 3,500 Room ...Mr. and Mrs. Kim own a principal residence and a vacation home. Each residence is subject to a mortgage. The mortgage on the principal residence is acquisition debt, while the mortgage on the vacation home is home equity ...Mr. D borrowed $600,000 to purchase 62 acres of undeveloped land and secured the debt with the land. He converted a three-room log cabin on the land to his principal residence. This year, he paid $39,910 interest on the ...
Post your question