Local CPA shares last minute tax-deductions to file now

For those who haven’t filed their taxes yet, or for people looking to start the new fiscal year off strong, it’s important to consider every cost and purchase - chances are, some are eligible as tax-deductions and can help reduce an end-of-year tax bill.

Dennis Duban, a certified public accountant and the founder and chairman of Los Angeles’ DLD Accountancy, LLP, is encouraging his clients to consider a number of overlooked items, especially as they relate to the home, while filing their taxes this month.

And for those who have already filed their tax returns this year, Duban says that this information is still important to consider now - after all, the more people can prepare for the next year, the better their experience will be.

“Filing taxes and keeping track of every single payment or purchase can be overwhelming,” said Duban. “That’s why it’s so important to start early. As I always tell my clients, it’s not just April that you need to focus on tax return preparation. By building a mental list of key purchases to keep record of now, you’ll save yourself time, stress, and money in next year’s tax season.”

Here’s some of the most important deduction-eligible costs that Duban sees often overlooked:

Home Offices

“With so many people continuing to work from home, either entirely remotely or in a hybrid model, spending on and for the home continues to remain at a high,” said Duban. “But what people don’t know is that home offices and purchases related to working from home are often deductible, and can help these people save money when they file their taxes.”

Duban says that self-employed individuals that use a room in the home exclusively for business can deduct a pro-rata share of the costs of renting or owning a home, including rent or mortgage, insurance, utilities, maintenance, and repairs.

Even house plants can qualify as a business expense, says Duban, if purchased to improve a home office!

Clean Energy

Installing technology like solar panels and energy efficiency appliances (a new washer, dryer or toilet, for example) can be rewarded with credits from some state governments.

Health, Wellness and Family Planning

“Purchases made to improve one’s health are often costly,” says Duban. “Thankfully, many are also eligible for deductions, which helps incentivize and reward us for getting - and keeping - healthy.”

For people looking to quit smoking, the use of nicotine patches, smoking cessation aids or programs may qualify for deductions. The same goes for weight loss items and services - items or services used to reduce cholesterol, improve heart rate or lose weight for any physician-diagnosed disease may be eligible.

The cost of buying, training and maintaining a service animal can be deducted as well. Additionally, adaptive equipment such as hearing aids, crutches or wheelchairs qualify.

And fertility enhancement has become eligible for medical expense deductions - the cost of in vitro fertilization (IVF), artificial insemination and the temporary storage of eggs and/or sperm all qualify for deductions.

Filing Correctly

Of course, Duban says that it is important for individuals to talk to a trusted financial advisor before filing these taxes, to ensure that everything is correct and squared away.

“The language of taxes can be intentionally confusing,” says Duban. “Especially if you’re filing a claim that’s different from previous years due to a professional or lifestyle change, be sure to do your research and walk through everything with a financial advisor.”

ABOUT DENNIS DUBAN

Dennis Duban, CPA, is a certified public accountant with over 40 years of experience and is the chairman and owner of DLD Accountancy, LLP in Los Angeles, CA. He graduated from the University of Southern California with a Bachelor of Science in Accounting. In 1973, Dennis joined an international CPA firm, and eventually branched out on his own to create Duban Accountancy in 1979 to offer tax and accounting expertise to individuals and businesses. In 2014, the firm name was changed to DLD Accountancy, LLP. Dennis' specialties include tax compliance and planning for individuals, partnerships, corporations, estates and trusts. His specific areas of tax expertise include real estate, the entertainment industry, construction and development, professional corporations, retirement and estate planning. He believes that each client’s financial goals are achieved by careful, insightful and individual attention to their needs and by creating an atmosphere of mutual trust and respect.