Archive for October, 2008
Federal Medical Tax Deductions
October 24th, 2008
Question: Can I claim medical expenses that occurred in 2008 for 2007 taxes?
I have already filed and paid 2007 federal income taxes.
I just incurred a large medical bill that allowed a deduction amount that was higher than 7.5% of my AGI.
Can I still claim this medical expense for tax year 2007 and amend my taxes?
TIA
Answer: you can only claim deductions for the tax year in which you paid the expense. so if you paid the medical expense in 2008, you can claim on your 2008 tax return.
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Website explores pros and cons of obesity
ProCon.org, a nonpartisan 501(c)3 nonprofit public charity dedicated to promoting critical thinking, created the new website http://www.obesity.procon.org to explore the core question “Is obesity a disease?”
Dr. Rand Paul on King World News | Part 1/3
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Standard Deduction Single
October 24th, 2008
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Eight facts about filing status
Everyone who files a federal tax return must determine which filing status applies to them. It’s important you choose your correct filing status as it determines your standard deduction, the amount of tax you owe and ultimately, any refund owed to you.
Canon PowerShot D10 Waterproof Camera
Tags: Are Contributions To 529 Plans Deductible
October 23rd, 2008
Question: Are employer contributions to 529 plans deductible or taxable to the employee?
I work for a very small company with very generous benefits. They are considering making contributions to dependent 529 plans for college education. Are these contributions deductible for them or taxable to me?
Answer: Both.
These payments would be a taxable benefit to you and deductible to the employer.
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Iowa Telecom Reports Results for Fourth Quarter And Year Ended December 31, 2009
NEWTON, Iowa—-Iowa Telecommunications Services, Inc. today announced operating results for the fourth quarter and year ended December 31, 2009. Quarterly highlights for the Company include: Operating revenues were $65.7 million.
Home Improvements Tax Deductible
October 22nd, 2008
Question: Are home improvement costs tax-deductible?
Answer: Tax-favored home improvements range from replacing windows and doors, to adding insulation or special roofing material, to converting heating and cooling systems to solar power.
The best thing about these tax breaks is that they are credits, which reduce IRS bills dollar for dollar. And while some credits are phased out once a taxpayer earns a certain amount, these credits are available to any homeowner, regardless of income.
You can include as medical expenses amounts you pay for special equipment installed in a home or for home improvements when the main purpose is medical care for you or your spouse. You can then deduct these amounts as long as you follow your doctor’s orders and the IRS’s rules. When claiming medical deductions, both the medically necessary home improvements as well as the more run-of-the-mill health care costs must be itemized on Schedule A. And only the amount that exceeds 7.5 percent of your adjusted gross income is deductible.
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Baseball. Reserve Your Space For Exclusive ‘A Night With Tommy’ Engagement
The exclusive engagement, “A Night With Tommy,” is fast approaching and due to the high demand of this event, UCSB Athletics is encouraging people to make their reservations today for the dinner with Hall of Fame manager Tommy Lasorda.
How to Build Your Own Home Made SOLAR PANEL to Generate FREE Electricity
Tax Deduction List 2009
October 22nd, 2008
Overall picture
Singapore has been consistently ranked favourably as one of the best places to do business in the world, and this comes as no surprise. In the latest Doing Business Project 2009 undertaken by the World Bank Group, Singapore came out tops in several categories.
The categories that Singapore was ranked first included:
* The ease of doing business
A high ranking on the ease of doing business index means that the regulatory environment is conducive to the operation of a business. Also, the Singapore economy is based on free enterprise, with no restrictions on foreign ownership of business.
* Employing workers
Employing workers measures the flexibility of labour laws among various countries over the world. It examines the difficulty of hiring a new worker, rigidity in terms of working hours and problems faced while dismissing a worker.
* Trading across borders
This ease of trading across borders criteria includes documentation, time and cost to export and import. Singapore is also ranked first for having the most open economy for international trade and investment by the World Economic Forum.
Taxation
Singapore is business friendly and an ideal country for company formation because of the ease with which taxes can be filed and paid, and also its low corporate tax rates relative to many developed economies in the world. From Year of Assessment 2010 onwards, the corporate tax rate of Singapore is to be 17%, just 0.5% higher than that of Hong Kong – Singapore’s closest competitor in the Asia region.
However, the effective tax rate is significantly lower than most of the countries, if not all the countries, in the region. With a further reduction in the 1% from 18% to 17% in corporate tax rate, it will enhance Singapore’s appeal to attract investment dollars.
In addition, the Singapore Government has been actively trying to encourage the growth of a knowledge-based economy and have in place a myriad of tax incentives – thereby lowering the effective tax rates of companies. Some of the tax incentives schemes handed out by the Economic Development Board of Singapore (EDB) include:
* Pioneer Industries
The EDB may grant pioneer incentive to an approved industry which is not being carried on in Singapore on a scale adequate to the economic needs of Singapore, and for which there are favourable prospects for development. The tax relief period of a pioneer enterprise shall commence on its production day and shall continue for such period, not exceeding 15 years.
* Pioneer Service Companies
Similar to the Pioneer Industries scheme, it is granted to services which fall under the list of ‘qualifying activities’. These include any engineering or technical services such as laboratory, consultancy and research and development activities, computer-based information and other computer related services, the development or production of any industrial design and such other services or activities as may be prescribed.
* Development & Expansion Incentive
A tax relief period of up to 10 years as the Minister may determine not exceeding 5 years for each period may be granted upon approval to the manufacturing or increased manufacturing of any product from any industry that would be of economic benefit to Singapore.
* Enhanced Tax Deduction for Research & Development (R&D) expenses
Where a taxpayer directly carries out qualifying R&D activities in Singapore, he can claim a further deduction of 50% of the amount of qualifying R&D expenses incurred. This is in addition to the 100% deduction he can claim for such expenditure.
Treaties and Agreements
Currently, Singapore has signed 18 free trade agreements (FTAs) with many of the world leading economies including the United States of America, Japan, Korea, and China. There are also 5 on-going FTA negotiations, with countries like India and Mexico. In the words of International Enterprise (IE) Singapore, these FTAs act as “superhighways that connect Singapore to major economies and new markets”. The FTAs have lowered the cost of doing business by reducing or eliminating tariffs, easing investment rules, and enhancing intellectual property regulations.
On the tax front, Singapore has also concluded many Double Taxation Agreements (DTAs) with other jurisdictions. This provides certainty to businesses regarding when and how tax is to be imposed, thereby reducing compliance costs. DTAs also allow companies to claim for relief of taxes paid overseas. To date, Singapore has signed and ratified comprehensive DTAs with 60 countries, 7 limited treaties and 4 more which are signed but not ratified.
In essence, with efficient planning and structuring, Singapore is a great jurisdiction for company incorporation, as it results in a higher net profit after tax. The efficient economy, good infrastructure, skilled workforce and sound economic policies in place has certainly boosted Singapore’s reputation an ideal jurisdiction to do business in.
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10 ways to become financially fit in 2010
Breathe a sigh of relief. The financial rocky road of 2009 is over. USE, don’t lose, those new gift cards. Most gift cards cannot have expiration dates or fees, unless clearly stated on the card itself.
Death and Taxes – TaxSlayer.com