Itemized Deduction Vs the Standard Deduction: Overview

Taxpayers who typically choose to take the itemized deduction over the standard deduction are those with significant deductible expenses.

Examples:

? Homeowners with a mortgage.

? Individuals with high medical expenses.

? People who have made significant charitable contributions.

Other itemized deductions:

??State and local taxes: You can deduct state and local income tax, and property taxes up to a certain limit.

??Investment interest: You can deduct interest paid on loans used to purchase investments up to a certain limit.

??Casualty and theft losses: You can deduct losses from damage or theft of property not covered by insurance up to a certain limit.

It's important to keep detailed records of all itemized deductions to ensure you can support your deductions in the event of an IRS audit.

? Having a great accountant will ensure that you know what kind of deduction is best for you to take.

Have a question about this or a different tax-related matter? Feel free to reach out!

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