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From: johnson@hplabsc.UUCP (Mark Scott Johnson)
Newsgroups: net.taxes
Subject: Re: Safe Deposit Box deduction
Message-ID: <22@hplabsc.UUCP>
Date: Fri, 3-Jan-86 11:37:38 EST
Article-I.D.: hplabsc.22
Posted: Fri Jan  3 11:37:38 1986
Date-Received: Sun, 5-Jan-86 01:02:22 EST
References: <1721@cbosgd.UUCP>
Organization: Hewlett Packard Labs, Palo Alto CA
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> 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.
> 
> Any references or experiences with this would be appreciated.
> 
> Bruce Hartsough
> ..!cbosgd!bah

If the coins were purchased "as an investment" (as opposed to merely a hobby),
the cost of the safe deposit box should be deductible.  I don't have any
specific references, but it is a general IRS philosophy that "intention"
plays a big role in determining deductibility.
-- 
Mark Scott Johnson
ARPAnet: Johnson%hplabs@csnet-relay.ARPA
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