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Tax Deductions Limited 2018 - 07/24


Taxpayers win a little but lose a lot in court. A married couple had full time jobs and owned rental properties. The IRS denied several tax deductions related to the properties, including expenses for cleaning, maintenance and utilities. The U.S. Tax Court agreed that the couple wasn’t entitled to thousands of dollars of deductions due to a lack of substantiation. However, the court allowed deductions of $110 for plumbing services and $80 for an appliance repair because they provided an invoice showing the amount paid and a canceled check. (TC Memo 2018-109)