If you have a choice, simply figure which strategy saves you more. Generally, as your tax bracket rises, the flexible spending account grows more valuable. The credit can also land you in Alternative Minimum Tax hot water by cutting your final tax bill below AMT levels. Figure the credit on Form 2441 and carry the amount to Form 1040. The IRS publishes numerous depreciation schedules for various asset classes.
Depreciation reduces a capital item's Basis for figuring gain or loss on a later sale.
You can also use First-Year Expensing to deduct property immediately rather than depreciating it over time. There are additional rules and tax consequences for depreciating Real Estate . Diets prescribed for specific medical conditions are deductible as a Medical Expense to the extent the prescribed diet costs more than a regular diet. Disability Insurance premiums you pay for your own coverage are a nondeductible personal expense. If you own your own corporation, the corporation can deduct premiums for yourself and your employees.