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Don’t gamble on your tax deductions

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in Small Business Tax,Small Business Tax Deduction Strategies

Q. My husband suffered losses from gambling last year. Can we deduct the excess loss over 2% of our AGI? T.A.P., Philadelphia

A. Even better, gambling losses can be deducted without regard to the 2%-of-AGI floor for miscellaneous expenses. But your losses are deductible only up to the amount of your winnings. Claim the losses on Schedule A, Line 28.

Tip: In some cases where one spouse has a disproportionately large amount of deductions, a married couple may fare better taxwise by filing separate returns. Figure things out both ways for ’08.

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