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Subject:  Two questions for a self-employed friend Date:  4/17/2003  11:24 PM
Author:  FuskieFool Number:  65092 of 129657

I already received my refund, but my self-employed friend filed an extension because she does not have the funds to put into her SEP yet. In discussing her situation, two questions arose.

1) How do you properly account for a MSA? She thinks you can deduct only the amount reimbursed from the MSA, but I thought it was the amount contributed, like my FSA. If you had additional out-of-pocket medical expenses, are they also deductible?

2) My friend thinks her tax preparers never deducted for the new car she purchased 3 years ago. She drives it about 10-20% in her business. Her tax preparers told her the deductions were too insignificant to warrant the cost of filing an amended return for those years. I did not think it cost anything to file an amended return (unless it is the tax preparers who want to charge for it, in which case could I not use my Turbo Tax to help her?)

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