Wednesday, January 21, 2009

Allowable and Unallowable IRS Expenses Towards Resolutions

This week I had a taxpayer ask me whether or not the following expenses would be considered an "allowable" expense with the Internal Revenue Service. When it comes to what is considered an allowable and unallowable expense, the IRS has strict guidelines on what they deem as a necessary living expense.

1. School Loan, for a child- This would not be considered an allowable expense , unless you had a ledger showing how was paid along with the balance; need to include the original loan statement

2. A personal loan you have made with a family member- This too is not an allowable expense because its not a loan backed by collateral. Meaning, the loan could be in someone else's name, and the taxpayer pay them monthly, but not itf the loan is not through an acredited finacial institution backed by collateral (car,home,assets).

If you have questions or need tax debt relief, contact a professional who can help today.

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