Claim Tax deductions for items you didn’t pay for
Surprise, Surprise! You can deduct expenses that were paid by someone else.
For example, in some cases, you are allowed to deduct medical expenses if they are more than 7.5 percent of your adjusted gross income. In one case, a mother paid for her daughter’s medical expenses. The daughter was allowed to count about $25,000 of her expenses paid by her mother, because it was a “gift” and paid directly to medical service providers.
Real estate tax expenses can also be deducted due to the annual federal gift tax exclusion, which is currently $13,000. If someone gives you the gift of paying for your real estate taxes, you are allowed to claim an itemized deduction.
You may also be able to write off points that you pay to take out a mortgage when buying your principal residence. Deduct mortgage points paid by the seller, as well.
Remember, don’t assume you can’t deduct something you didn’t pay for.
To read more about deducting expenses you haven’t paid for, visit SmartMoney.