The IRS Deductions Blog

Archive for February, 2010

Question: I am going to Germany next week and I am thinking of renting a Porsche 911 Turbo but?

received this offer form a rental company. I cant understand it, can someone explain to me?

Payment 2 Credit Cards (Visa, Amex, Master)

Liability: Loss and Theft Deductible (LTD) € 56.000,-
Damage Deductible (DD) € 56.000,-
Daily fee to reduce LTD € 18,-
Daily fee to redice DD € 120,-
Reduced Deductible LTDDR € 14.000,- (only valid on public streets)
Transport: Pick up and drop off at Frankfurt € 800,-
Daily Rental Fee € 1.400,-
The total amount of € 5.414,- is including VAT, GPS, 900 km, Pick-up and Drop off in Frankfurt, the reduced deductible and the rental fee for 3 days.

Does this mean that I have to deposit 14000 Euros as insurance to get the car?

Answer: To further answer, the other answer has good info… however…. i’ve put a bit more info in the areas.

Payment 2 Credit Cards (Visa, Amex, Master)

Liability: Loss and Theft Deductible (LTD) € 56.000,-
(As other poster suggested, this is if it gets stolen, etc) deductible just as if you would with your insurance co.

Damage Deductible (DD) € 56.000,-
(Damage done to the car, if damaged, this is what you would pay, you will want to check their fine print as to WHAT is considered damage, IE clutch damage, tranny damage, physical damage to the body, etc)

Daily fee to reduce LTD € 18,-
(Pay this as an extra per day and it reduced what the deductible WOULD be….)

Daily fee to redice DD € 120,-
(Pay this as an extra per day to reduce what this deductible would be…)

Reduced Deductible LTDDR € 14.000,- (only valid on public streets)
(if you paid the above per day fees, this is what the total deductible would be rather than the above deductibles, big deduction, so they assume you’ll pay the extra fees per day, also likely means if you take her off roading and go do something bad or damage it by going off the public roads you’re fully responsible for any damage since it’s not intended to go there per their contract *double check the fine print*)

Transport: Pick up and drop off at Frankfurt € 800,-
(Transport fee)

Daily Rental Fee € 1.400,-
(Your daily cost of renting the vehicle)

The total amount of € 5.414,- is including VAT, GPS, 900 km, Pick-up and Drop off in Frankfurt, the reduced deductible and the rental fee for 3 days.
(Your total cost for the options)

The deductible is if something happens. It didn’t specify it as a deposit. However, you will want to check with them and see what they WILL charge as a deposit, because if there is one to be paid, it’ll be charged to your card before you get the keys. If it’s a nice 911 Turbo (such as a 996 or 997) it’ll be far from cheap, so likely you’ll have a hefty deposit so you don’t come back with a mangled 911.

Items on Amazon Right Now for Deductible Theft Loss:

Protect your Valentine diamond

Lucky you. Your amorous, jewelry-buying dearest bought you a ring for Valentine’s Day. No matter how unromantic it may sound, that means it’s time to review your home-owners insurance.

Question: Are political campaign contributions tax deductible?

I was about to make one online but it said that it’s Not Tax Deductible, and the site was paid for by the person running for office, so I wanted to make sure if there are different ways to make the contribution to get it tax deducted or if they are all not tax deductible.

Answer: Nope…not tax deductable.

Items on Amazon Right Now for Tax Deductible Political Contributions:

Letters to the Editor for Wednesday, Feb. 3, 2010

To the Editor:

When Bach Meets Rock Benefit Concert

Question: for self-employed does claiming deductions lower your gross income?

Hi I had a question. So i have a normal job thats 20 hours a week, they alredy take taxes. I’m also a chat host online and make about $2800 a month from that. I am trying to buy a house in the next 2 years so it’s important that my yearly gross income looks as high as possible(on the tax return/form) to get the highest loan amount. possible. So if I claim $200 a month in deductions would that mean my monthly gross income would be lowered to $2600? Also when I file my yearly taxes next year will they try to tax me on the earnings at my normal job that has already been taxed? I heard at the end of the year you just file one big return…thanks =)

Answer: Yes, gross personal income is after business expenses if you file a Form T2125 (or Schedule C in the US).

“They” won’t “try” anything. You will deduct the amount withheld at source from your paycheque from any amount of tax owing on your T1 tax return (figured on your total income from all sources).

Items on Amazon Right Now for Important Tax Deductions:

An important tax credit that might not be on your radar screen

For millions of Americans filing their 2009 tax returns, things could be vastly different this year.

Tips & Advice for Income Tax Deductions : Why you Should File your Income Taxes

Question: What qualifies as a deductible home office expense?

Answer: If you use your home office for business, you must use it exclusively for business. If your home office totals 20% of your home’s total square feet, then you may deduct 20% of your mortgage or rent and associated utility bills. You may also deduct a phone bill if you use that line exclusively for work or a work fax line.

Items on Amazon Right Now for Home Office Deductible:

G.O.P. Group to Promote Conservative Ideas

WASHINGTON — A group of prominent Republicans is forming an organization to develop and market conservative ideas, copying a successful Democratic model and hoping to capitalize on the fund-raising and electioneering possibilities opened up by a recent Supreme Court ruling.

2345 Palmer Ave, #3C, in New Rochelle, NY – $127.5K, Great Starter Home!! Low maintenance!

Question: Are property taxes, mortgage interest, etc. still deductible if I rent out a room of my home?

Just wondering if the standard Tax Deductions of home ownership (e.g. property taxes, mortgage interest, etc.) are still fully tax-deductible if I rent out a spare bedroom of my home?

Answer: Yes, but you need to declare the rental income

Items on Amazon Right Now for Standard Deduction Property Tax:

Housing Visions Program And United Way Offer Free Tax Preparation

The Housing Visions Program and the United Way of Greater Oswego County invites eligible families to take advantage of free tax preparation and learn more about the eligibility for, and the benefits, of the Earned Income Tax Credit program.