The IRS Deductions Blog

Archive for November, 2008

Question: Do tax Deductible Business Miles carry over to the next year?

I’ve adjusted my AGI to $0. I still haven’t even deducted my business miles, will these carryover to next year?

Answer: If you have a net operating loss on your business, it will carry over to next year. If the mileage is for employee expenses, it won’t.

Items on Amazon Right Now for Deductible Carryover:

New Rules for Roth IRAs May Prompt Conversions

Prior to 2010, your adjusted gross income had to be less than $100,000 to convert an individual retirement account or qualified plan to a Roth IRA. Beginning in 2010, there are no AGI limitations, making many more taxpayers eligible to convert their accounts.

Items on Amazon Right Now for Post Tax Deduction:

Introducing … Tri-county’s first baby of 2010

The star of the show was totally indifferent and unfazed. Tiny Ryan Black, not yet a day old, slept peacefully in his mother’s arms, oblivious of the media swirl surrounding him.

Field celebration after UCLA defeats USC Dec 2, 2006

Question: TDS on Professional Fee?

Hi
I am recruitment consultant. when i raise the bill to my client, they send in the cheques after deducting the TDS. I hv few questions abt this :
1. How can i take care of this at the end of the years,
2.Are there any tax deduction slabs in professional fee as well like income.
3. Also, do i need to show the proof of expensies done on business while filling the return?

Answer: if your yearly bill to a client is more 20000 in a financial year than client is responsible to deduct tax on the payment .the rate of tax is 10 % basic rate plus surcharge10%on basic rate(if applicable) and cess 3% on (basic +surcharge).

1.tds is adjustable against your tax liability to which income relates on which tax has been deducted.if you have nil tax liability than tds will be refunded to you.
2. there is no tax slabs for tds on professional fee .
3. yes you should have resonable evidence for expenses you have done ,moreover if your gross receipts are more than 120000 than you are liable to maintain proper books of accounts and if your gross receipts are more than 10 lacs than your books should also be audited u/s 44ab

you can download free tds calculator from the link given below

http://simpletaxindia.blogspot.com/2007/10/free-tds-calculator-fy2007-08-excel.html

Items on Amazon Right Now for Tax Deduction Slab:

ELSS: a tax saver & wealth generator

Most of the tax saving instruments under Section 80C are savings-oriented instruments, with returns after adjusting for inflation either in the negative or slightly positive. The exceptions to this are the Ulips and the ELSS Mutual Funds.

Do you know why debt is a bad thing? Every American has some debt, and even Donald Trump has declared bankruptcy before, but seeing debt for what it truly is can be your first step towards financial freedom. If you make $60,000 a year and you have $10,000 in debt, that’s probably a manageable amount. However, if you’re making $25,000 a year and you have $10,000 in debt, that’s a problem.

Debt Calculator

The Federal government considers a debt burden of more than 40% of your gross income an indicator of financial distress. Think about it this way: if taxes are eating up 25% of your salary, you’re saving at a healthy 15% clip, and your loan payments hit 40%, you’re left with just 20% for everything else.

To figure out your debt situation, here are some steps:

TOTAL MONTHLY DEBT PAYMENTS

• Monthly net (take-home) pay +
• Annual bonuses and overtime, divided by 12 +
• Other annual income, divided by 12 =

TOTAL MONTHLY INCOME

Sources of Debt Problems

There are all kinds of ways to rack up debt:

Debt Settlement Professionals

In getting over the debts you owe, you may need a debt settlement professional to help you address your debt problems, pay down the money you owe and create a plan that will lead to financial independence. Living paycheck to paycheck is no way to live, and yet so many Americans do live that way. Losing sleep at night, heart disease, high blood pressure and more are all caused by the kinds of stress that come from having too much debt. Talking to someone who has counseled others, who has created successful plans for other people and who has seen large debts and small debts is very important.

Items on Amazon Right Now for Paycheck Deductible Calculator:

Get Buttoned Up: Avoid April 15 mad dash with this tax-prep schedule

In a few short weeks, whether you like it or not, your taxes are due. Don’t let it sneak up on you. There’s no reason tax time has to be a stressful flurry of last-minute preparations capped off with a sprint to the post office (or accountant). If you take a few little steps each week, you’ll be pleasantly surprised at how much easier it all comes together on April 15.

Question: Is the house buying legal fee tax deductible?

I bought a condo last year and paid legal fee for the attorney. Is such fee tax deductible if I use itemized filing. Thanks!

Answer: No, it is Not Tax Deductible, nor are any of the other costs incurred in ‘closing’. Your only deduction potentials lie in interest paid (including points paid at the taking of the mortgage), and property taxes paid on the property. All other costs are added to your cost basis, such that they reduce any profit you make when you sell the unit.

Items on Amazon Right Now for Attorney Fee Tax Deductible:

In & Around Town

SATURDAY, Oct. 4 The second ‘Shop ‘n’ Rock’ will be hosted from 1 to 6 p.m. at the Budd Lake Firehouse, Route 46. The event is sponsored by the Mount Olive Kiwanis and Mount Olive Fraternal Order of Police Lodge 122. The family event will include food, activities, music, a kid’s play zone and vendors. Vendors and sponsors are sought and should visit www.mtolivekiwanis.org[[[SHIFTIN …

VOA: CAIR Hopes to Educate Americans About Islam