The IRS Deductions Blog

Archive for May, 2009

Value added tax (VAT) has always been a cause of perplexity to the real estate buyers. While some builders are recovering VAT from the customers, there are others who are not charging their customers at all. This has led to much confusion for the property buyers as to whether VAT needs to be paid and if it does need to be paid, what should be the amount.

The VAT system replaced the sales tax system with the objective of simplifying the tax regime and to avoid the problem of double taxation. VAT is a multi-stage tax levied at each stage of the value chain with the provision that tax credit will be allowed for the tax paid at an earlier stage.

Under the VAT structure, there are two categories of rates – four percent or 12.5 percent. The idea behind this was to bring about uniformity in the levying of tax by different States and simplify the complex structure under the sales tax system. Different States have enacted the VAT Act for their State along with certain variations. While some States have moved away from the basic rate structure, some have introduced certain exemptions and concessions for the benefit of specific sectors.

In Karnataka, the real estate developers or builders have an option to charge VAT to the customers under two schemes. The first one is the composition scheme where the builder pays four percent of the construction cost as VAT. In this case, he does not claim anything from the individual owners.

Under the second scheme, the builder can collect 12.5 percent of 70 percent of the cost of construction from the individual owners. This works out to 8.75 percent of the total cost of construction. VAT is applicable only to materials and 70 percent of construction cost is representative of the materials cost in construction. VAT is calculated on the cost of the flat, parking space cost and amenities.

While some may think that it is unfair for buyers where the builder opts for the second scheme, it is not so. In the first case, although the builder is paying VAT himself, the additional burden will be passed on to the owners by way of a higher price. Similarly, where the builder is recovering VAT from the owners, the price of the flat would be lower to that extent since VAT is an additional cost to the buyer. Failure to do so may render him uncompetitive in his overall pricing.

Courtesy:- TOI dt:- 05-09-2009

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Focus on the Construction Industry Tax Deduction Scheme (Tolley’s focus on) …

The Hindu Business Line : How the revised tax code impacts you

Good news: The new DTC proposes to retain tax deduction on home loan interest payment. Pressure from many sections of taxpayers has led the Government to effect revisions in its Direct Taxes Code proposals.

Recently, Microsoft has made a significant announcement that Office 2010, including the latest version of Word with plenty of dramatic new feathers, will be released next year. According Microsoft’s aggressive announcement, Microsoft Word 2010 aims to be the best of Word with enhanced features to create professional-quality documents, easier ways to work together with people and almost-anywhere access to your files. Considering the hot new features of Word 2010, you may be desirous to wonder whether you can create PDF from Word 2010 after editing, or convert PDF to Word 2010 for easier editing.

Create PDF from Word 2010
As the most authoritative word-processing and document-exchanging solutions provider, Microsoft Word and Adobe PDF have their own file format which cannot support each other for format converting between themselves. Few years ago, the two companies had engaged in a lawsuit because MS Word embedded the function that allowed users to create PDF from Word. Consequently, conversion between PDF and Word is always a hassle. In Word 2010, we are delighted to see that it provides a quick way to create PDF from Word directly.

Convert PDF to Word 2010

As for PDF to Word conversion, it still calls for 3th-party apps support. After researching and testing, AnyBizSoft PDF to Word Converter 2.0 is proven to be the first PDF to Word 2010 converters that can let users convert PDF to Word 2010 well even in Window 7 OS. It supports converting up to 200 PDF files even the encrypted ones at a time. All the elements and layout of the converted Word files are preserved accurately from the original files. After editing, Word 2010 provides a quick way for users to create PDF from Word 2010 directly.
With the conversion methods between PDF and Word 2010 presented above, hope that you have a good view of the two tools and enjoy modern working style that the advanced technology has brought to us.

With the conversion methods between PDF and Word 2010 presented above, hope that you have a good view of the two tools and enjoy modern working style that the advanced technology has brought to us.

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End-of-year tax tips for small business

As amazing to me as ever, we are in the end-of-the-year holiday tax season. To many people, this time of year means many things, so let me add just one more item to your checklist.

PerformerTrack: Quick Start Guide – Step 3

Now that you realize how important it is to get a California individual health insurance, your next step is to shop around for one. There are a wide number of options for individual health insurance in CA; finding the right coverage for you is a big task. However, you should invest time and effort on making the right choice if you want to get the best value out of the investment you will spend for health insurance. What are some factors to considering when deciding on individual health insurance?

First, before you start thinking about how much a California individual health insurance coverage will cost you, evaluate your needs first. Take note of your existing health conditions, evaluate your lifestyle, ask around for medical family history, and so on. Based on the information you collect, find out what type of insurance coverage you need. Predict what kind of medical attention you would most probably need in the future. Bear in mind though that the more expensive the medical bills needed for the medical coverage you want, the more expensive your premiums will be.

Having said that, remember that when you get a California individual health insurance, you will pay premiums, usually on a monthly basis. This cost associated to getting a health insurance in CA is something you need to be ready for. The cost you pay to enjoy medical benefits will depend on your coverage. The more you are covered, the more you will pay. Some insurance policies require you to pay some additional costs for getting medical treatment. You may be responsible for a portion of the total cost, or for paying a fixed amount for your hospital visit. These terms vary greatly depending on your policy, the medical problem, whether or not the medical service provider is covered by the insurance network, among others. It is very important that your insurance quote provides information on these.

A good way to lessen the financial burden in getting a California individual health insurance coverage is to specify a deductible cost. This is a fixed amount you pay before the benefit payments kick off. Closely related is the out of the pocket cost, wherein the insurance does not cover the entire claim so you have to pay minimal amount straight from your pocket. You need to decide how much deductible and out of the pocket costs you can take. Setting these two to a higher value will go a long way to lessening your monthly or annual payments.

Moreover, another important point about health insurance in CA is the network of medical practitioners. You will make the most out of your health insurance if you see a doctor that is covered by the company you chose. If you are choosy with doctors, try to find a health plan that includes the doctor you want to keep seeing. Finally, choosing the right California individual health insurance is all about proper self evaluation and thorough research. Some effort and time will save you a fortune when a medical emergency happens. If you follow this guideline, you’re on your way to the health insurance plan that will work best for you.

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The choice between family and individual deductibles in health insurance ([Report] – Rand Corporation ; R-1393-HEW) …

Neither snow nor ice stops Madison volunteers from rounds

MADISON – Despite icy conditions that closed many major roadways, Madison Eagle Christmas Fund volunteers were delighted to make their special deliveries to this year’s group of recipients on Sunday, Dec. 13, still a comfortable distance away from the real Santa’s gift run.

Dental Plans, Individual, Family, Health

Question: what is the difference between annual deductible and annual copayment maximum?

I’m trying to get insurance but some of the terms for pricing is confusing? I’m a healthy 26 year old so i’m trying to understand what is the best plan.

Answer: Deductible is the amount that you first have to pay for medical treatment before the insurer will pay for anything. Copayment is the amount you have to pay in addition to the amount paid by the insurer, for each visit or prescription, up to the maximum limit.
If you had a $5000 bill for your first expense, then with a $2,000 deductible, you would pay the first $2000. If your insurance paid 80%, then you would also be responsible for 20% of the remaining $3000. In addition, you would have to pay a copay for each office visit or prescription covered by your insurance.

A high deductible is probably a good idea if you don’t anticipate needing any medical treatment.

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Reserves might cover Oregon workers’ health care gap

Without officially deciding it Wednesday, the Oregon Public Employees’ Benefit Board appears to be moving toward a decision to draw down reserves to make up the difference between higher-than-projected costs and available money for workers’ health insurance benefits in 2010 and 2011.

Health Care Stakeholder Discussion: Women

Question: If I organize a Neighborhood Pet Rodent Olympics, can I take a tax deduction as a non-profit agency?

I am also going to outline a plan for Ultimate Hamster Fighting (UHF) with no rules combat in a death cage… I am going bill that one as a Police charity event. Do I need special construction permits for the cage/arena?

Answer: Well, you can always go underground and build without permits and such. The only problem then is rats. A rat might snitch on you. Good luck.

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Thousands in tax breaks proposed for pet owners

If you have a pet, you know how those vet bills can add up, sometimes to thousands of dollars per year.

The HAPPY Act to provide tax credit for pet and veterinary care by U.S. Rep. Thaddeus McCotter