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From: ajf@pyuxa.UUCP (A Figura)
Newsgroups: net.taxes,net.invest
Subject: Re: IRS has budget of $160 Million???
Message-ID: <1360@pyuxa.UUCP>
Date: Wed, 9-Jul-86 13:07:07 EDT
Article-I.D.: pyuxa.1360
Posted: Wed Jul  9 13:07:07 1986
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While explaining the various benefits of simplifying the tax code,
Clayton Cramer says:

> same rate) takes away reason to take questionable deductions so that 
> you can get below a particular tax rate.  (I know: I spent an hour once
> adding up the state utility tax on my electricity bills to get seven
> dollars more deduction to drop below a taxable income level to save
> more than $7 in taxes.)

While I agree that a simplified tax law will reduce the incentive for
questionable deductions (and rightly so), I'm afraid that your
referenced deduction is a little worse than questionable - it's probably 
a non-allowed deduction.  I believe that the taxes on your utility
bills (electric, phone, etc.) are considered excise taxes, and not
sales taxes; excise taxes are not deductible.  I hope the IRA will
overlook the $7, but it looks like your hour was spent in vain :-).

(On the other hand, I may be wrong; I wonder if I'll draw undue attention
to myself if I file an amended return for my $7! :-)