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    Tax Deductions and Taxable Income

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    1. Mr.Cox is a passionate stamp collector. His collection is so valuable that he keeps it in a safety deposit box in a local bank, which charges him $25 a month. Can he deduct this expense? Explain.

    2. People frequently hold garage sales to sell used appliances, old furniture and clothing, books, toys, and other personal goods. Should these people recognize the cash proceeds from such sales as taxable income? Explain.

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    https://brainmass.com/business/accounting/tax-deductions-taxable-income-292393

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    Questions:

    1. Mr. Cox is a passionate stamp collector. His collection is so valuable that he keeps it in a safety deposit box in a local bank, which charges him $25 a month. Can he deduct this expense? Explain.

    No - According to the IRS Publication 529, you can ...

    Solution Summary

    The solution solves two questions regarding tax deductions and taxable income.

    $2.19

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