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Most people don’t look forward to filing their taxes, but if you anticipate owing money, tax season can be especially stressful. Fortunately, knowing there are several deductions available to you can help make tax return preparations less daunting. There are hundreds of deductions available, and many often go overlooked. Some of these underused ones are described below.

Tax Deductions That Are Commonly Overlooked 

1. Profit From Selling a House

For those who sold their house and made a profit, they can deduct up to $250,000 on an individual tax return. This is increased to $500,000 if they’re married and filing jointly. To take advantage of this deduction, you must have owned and lived in the home for at least two of the five years before the sale. Also, you’re not allowed to have deducted profit on another home sale within the last two years.

2. Gambling Losses

tax return preparationIf you decide during tax return preparation to itemize, you can include any losses from the casino, racetrack, or playing the lottery as a deduction so long as it doesn’t exceed your winnings. Just remember to keep track of all your receipts and to record all the details of your gambling activity. 

3. Home Improvements for Medical Care 

In most cases, you wouldn’t be able to deduct home improvements from your taxes. However, there is an exception when the improvement’s main purpose is to provide better medical care for you or your family. A few examples include installing entry and exit ramps, widening hallways and doorways, and modifying stairways.

 

The best way to ensure your deductions are maximized is to leave your tax return preparations in the hands of a professional. With the help of Joe Heard, CPA and his skilled team of accountants, you can be confident your filing is accurate and your tax burden has been reduced as much as possible. Offering more than 15 years of accounting experience and up-to-date knowledge of the tax code, they can provide you with invaluable advice and guidance to make the most of your finances. Call their Checotah, OK, office at (918) 473-1492 to schedule a consultation, or visit them online to learn more about their tax return preparation service.

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