1. Beginning in 2005 we expect to see a stepped-up activity in IRS audits.

2. In response, there are a few topics that I want to "brush up" on. One of those areas is insurance.

3. Clearly deductible insurance expenses are:
   1. Hazard insurance,
   2. Liability insurance,

4. Clearly non-deductible insurance expenses:
   1. Insurance to secure a loan. It should be deductible, but it is clearly not deductible.
   2. Car insurance. All our clients with only a few exceptions should start keeping a mileage log and take the standard deduction. Taxpayers who should claim car mileage should not take a separate deduction for "station use" gasoline and car insurance.

5. Hospitalization insurance is not deductible.
   1. Hospitalization insurance paid for the owner is not deductible.
   2. It could be if it is a Group hospitalization and medical insurance for employees, but it probably is not.
   Copyright © - 2005 Dutch Hawkins Mandeville, LA USA - All Rights Reserved
   January 7, 2005