Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/18/84; site rochester.UUCP Path: utzoo!linus!decvax!genrad!panda!talcott!harvard!seismo!rochester!lab From: lab@rochester.UUCP (Lab Manager) Newsgroups: net.taxes Subject: Re: Safe Deposit Box deduction Message-ID: <14307@rochester.UUCP> Date: Thu, 2-Jan-86 12:13:26 EST Article-I.D.: rocheste.14307 Posted: Thu Jan 2 12:13:26 1986 Date-Received: Fri, 3-Jan-86 05:27:12 EST References: <1721@cbosgd.UUCP> Reply-To: lab@rochester.UUCP (Lab Manager(Brad Miller)) Organization: U. of Rochester, CS Dept. Lines: 34 In article <1721@cbosgd.UUCP> bah@cbosgd.UUCP (Bruce Hartsough) writes: >Can anyone help me out regarding the circumstances in which one can deduct >the cost of a safe deposit box? The instructions with the 1040 last year >said that you could deduct this as an Expense of Producing Income, if you >used it to store "interest-bearing papers" or something to that effect. This >year's instructions mention this as an example of something used "to manage >or protect property held for producing income". I am holding some fairly >valuable old coins and proof sets in my box, but I don't know if that counts >as income producing property before they are sold, or how loosely this can >be applied. I looked into this myself about a year ago. So long as you put investment items in the box (be it bonds, stocks, etc.) no problem. Jewelry, etc. won't go. Coins, only if you can show that you are an INVESTOR not a COLLECTOR, that is, you have a regular history of both buying and selling substantial positions (if you only buy they will claim you are a collector). There is a reason NOT to deduct, however... since deducting alerts the IRS you have a safty deposit box, when you die (or in other special circumstances) they can put a lean on the box (no access until they look). So, in terms of privacy, you may not want them to know.... Of course they usually find out when you die anyway, but why make it easy? Just be sure to use a bank you don't otherwise deal with. -- Brad Miller Arpa: lab@rochester.arpa UUCP: rochester!lab (also miller@rochester for non-lab stuff) Title: CS Lab Manager Snail: University of Rochester Computer Science Dept. 617 Hylan Building Rochester NY 14627