Page 106 - 2020 Publication 17

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
• Civil or criminal charges resulting from a If you have expenses to produce both taxa- Amortizable Premium on Taxable
personal relationship. ble and tax-exempt income, but you can't iden- Bonds
• Damages for personal injury, except for tify the expenses that produce each type of in-
certain unlawful discrimination and whis- come, you must divide the expenses based on In general, if the amount you pay for a bond is
greater than its stated principal amount, the ex-
tle-blower claims. the amount of each type of income to determine cess is bond premium. You can elect to amor-
the amount that you can deduct.
• Preparation of a title (or defense or perfec- tize the premium on taxable bonds. The amorti-
tion of a title). Travel Expenses for Another zation of the premium is generally an offset to
• Preparation of a will. Individual interest income on the bond rather than a sepa-
rate deduction item.
• Property claims or property settlement in a Part of the premium on some bonds may be
divorce. You generally can't deduct travel expenses you an itemized deduction on Schedule A (Form
pay or incur for a spouse, dependent, or other
You can't deduct these expenses even if a individual who accompanies you (or your em- 1040). For more information, see Amortizable
result of the legal proceeding is the loss of in- ployee) on business or personal travel unless Premium on Taxable Bonds in Pub. 529, and
come-producing property. the spouse, dependent, or other individual is an Bond Premium Amortization in chapter 3 of
employee of the taxpayer, the travel is for a Pub. 550, Investment Income and Expenses.
Political Contributions bona fide business purpose, and such expen-
ses would otherwise be deductible by the Casualty and Theft Losses of
You can't deduct contributions made to a politi- spouse, dependent, or other individual. See Income-Producing Property
cal candidate, a campaign committee, or a Pub. 463 for more information on deductible
newsletter fund. Advertisements in convention travel expenses. You can deduct a casualty or theft loss as an
bulletins and admissions to dinners or pro- itemized deduction on Schedule A (Form 1040),
grams that benefit a political party or political Voluntary Unemployment line 16, if the damaged or stolen property was
candidate aren't deductible. Benefit Fund Contributions income-producing property (property held for
investment, such as stocks, notes, bonds, gold,
Professional Accreditation Fees You can't deduct voluntary unemployment ben- silver, vacant lots, and works of art). First, re-
efit fund contributions you make to a union fund port the loss in Form 4684, Section B. You may
You can't deduct professional accreditation or a private fund. However, you can deduct also have to include the loss on Form 4797 if
fees such as the following. contributions as taxes if state law requires you you're otherwise required to file that form. To
• Accounting certificate fees paid for the ini- to make them to a state unemployment fund figure your deduction, add all casualty or theft
tial right to practice accounting. that covers you for the loss of wages from un- losses from this type of property included on
Form 4684, lines 32 and 38b, or Form 4797,
• Bar exam fees and incidental expenses in employment caused by business conditions. line 18a. For more information on casualty and
securing initial admission to the bar. Wristwatches theft losses, see Pub. 547.
• Medical and dental license fees paid to get
initial licensing. You can't deduct the cost of a wristwatch, even Excess Deductions of an Estate or
if there is a job requirement that you know the Trust
Professional Reputation correct time to properly perform your duties. Generally, if an estate or trust has an excess

You can't deduct expenses of radio and TV ap- Expenses You Can deduction resulting from total deductions being
pearances to increase your personal prestige or greater than its gross income, in the estate’s or
establish your professional reputation. Deduct trust's last tax year, a beneficiary can deduct
the excess deductions, depending on its char-
Relief Fund Contributions You can deduct the items listed below as item- acter. The excess deductions retain their char-
ized deductions. Report these items on Sched- acter as an adjustment to arrive at adjusted
You can't deduct contributions paid to a private ule A (Form 1040), line 16, or Schedule A (Form gross income on Schedule 1 (Form 1040), as a
plan that pays benefits to any covered em- 1040-NR), line 7. non-miscellaneous itemized deduction reported
ployee who can't work because of any injury or on Schedule A (Form 1040), or as a miscellane-
illness not related to the job. List of Deductions ous itemized deduction. For more information
on excess deductions of an estate or trust, see
Residential Telephone Service Each of the following items is discussed in de- the Instructions for Schedule K-1 (Form 1041)
for a Beneficiary Filing Form 1040.
You can't deduct any charge (including taxes) tail after the list (except where indicated).
for basic local telephone service for the first tel- • Amortizable premium on taxable bonds. Federal Estate Tax on Income in
ephone line to your residence, even if it's used • Casualty and theft losses from income- Respect of a Decedent
in a trade or business. producing property. You can deduct the federal estate tax attributa-
Stockholders' Meetings • Excess deductions of an estate or trust. ble to income in respect of a decedent that you
as a beneficiary include in your gross income.
You can't deduct transportation and other ex- • Federal estate tax on income in respect of Income in respect of the decedent is gross in-
a decedent.
penses you pay to attend stockholders' meet- come that the decedent would have received
ings of companies in which you own stock but • Gambling losses up to the amount of gam- had death not occurred and that wasn't properly
have no other interest. You can't deduct these bling winnings. includible in the decedent's final income tax re-
expenses even if you're attending the meeting • Impairment-related work expenses of per- turn. See Pub. 559, Survivors, Executors, and
to get information that would be useful in mak- sons with disabilities. Administrators, for more information.
ing further investments. • Losses from Ponzi-type investment

Tax-Exempt Income Expenses schemes (see Pub. 547 for more informa- Gambling Losses up to the
Amount of Gambling Winnings
tion).
You can't deduct expenses to produce tax-ex- • Repayments of more than $3,000 under a You must report the full amount of your gam-
empt income. You can't deduct interest on a claim of right. bling winnings for the year on Schedule 1 (Form
debt incurred or continued to buy or carry • Unlawful discrimination claims. 1040), line 8. You deduct your gambling losses
tax-exempt securities. for the year on Schedule A (Form 1040),
• Unrecovered investment in an annuity.
Page 102 Chapter 12 Other Itemized Deductions