Power of Attorney duties -- deductible?

What would be your theory here?

Probably that these are reasonable, ordinary and necessary expenses of your trade or business. That would make your trade or business that of exercising a POA. And you have a reasonable expectation of making a profit in this trade or business.

So to make a profit while deducting expenses, you would have to be getting paid for these POA duties. If, for example, you are a lawyer who acts as clients' attorney constantly, and bring in income from your trade, then sure, go ahead and deduct.

If not, I would want to know your theory and see your income from this work.

Time -- no. The value of your labor is never deductible.

Expenses? Well, would they be deductible to the person for whom you are acting? If that person paid the expenses, or reimbursed you, then I suppose that person might have a miscellaneous deduction on Schedule A.

To read more, a good place is IRS Publication 529, Miscellaneous Deductions, which lists quite a few things that specifically are and specifically are not deductible.

To build on the previous reply, the general theory is that expenses of producing taxable income are deductible. For example, legal fees to create a will or trust are not deductible. Legal fees specifically itemized as tax advice regarding wills and trusts are.

Or, take a safe deposit box. If it is used to store items directly related to taxable income, such as stock certificates, then deductible. If it is simply used to store legal documents or other similar papers, then not.

-Mark Bole

No. Just because one is performing the actions under a PoA, that does not make them deductible when otherwise not deductible - i.e. the expenses have to be deductible for some other reason.

If you are talking about financial POA, the person holding POA should document expenses s/he pays and write out a check to him/herself for the amount of the expenses from the checking account of the person for whom POA is held. I would count reasonable expenses such as copying, postage, possibly gas if the POA has to travel to see say the person's broker from time to time.

Unless there is a contract distinct from the POA duties for payment for labor, then like the others indicate labor cannot be charged or deducted.