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From: pld@cantor.UUCP (Peter Dordal)
Newsgroups: net.legal
Subject: Re: Deduction for Safe Dep. Box
Message-ID: <167@cantor.UUCP>
Date: Thu, 16-Jan-86 18:39:36 EST
Article-I.D.: cantor.167
Posted: Thu Jan 16 18:39:36 1986
Date-Received: Mon, 20-Jan-86 04:04:48 EST
References: <355@decwrl.DEC.COM>
Organization: Loyola Univ. of Chicago Dept. of Math
Lines: 19

> 
> >Subject: Re: Safe Deposit Box deduction
> >> you can deduct the cost of a safe deposit box ....
> >Sorry, but the IRS does't qualify any personal effects like important papers
> >unless the papers are held for the production of income.
> 
My understanding is that the IRS rarely if ever questions a safe deposit
box deduction, because if you deduct it then you are admitting that you
have one.  Since the IRS likes to know about boxes, and since rental fees
are rarely more than $50 (unless the box contains more than papers, in which
case it's not deductible), they consider it a fair trade.  I read about this
in one of those "ex-IRS officer reveals secrets" articles [in a reasonably
credible publication].

Moral: if you keep the undeclared $800,000 you made last year in a safe
deposit box, don't deduct the rental.

		peter dordal, loyola univ. of chicago math dept.
		...ihnp4!gargoyle!cantor!pld