The IRS Deductions Blog

Archive for May, 2010

Question: Can States create discount stores to generate profit for replacing tax?

Creating chain stores would provide more jobs, competitive pricing and provide a profitable resource for funding growing demands for education, pension funding for civil servants and possibly supplemental income for older people in workforce as well as students and not requiring state tax deduction from their paychecks since they have a lower wage in these pseudo-volunteer positions?
This would allow supplemental income for older workers and minimal stress considering more workers could be used economically. More high school students canbe hired and influenced by responsible and productive input from higher experienced co-workers. Respectable and supervised interaction could be made mandatory to support proper work ethics and practices might be rewarded by a vacation earned bonus or gift coupon for items from the stores themselves. With proper management of store pricing, minimum wage hikes may lessen and more provisions could be made available to people in need ithe most.

Answer: what makes you think a bunch of government hacks can do a better job than, walmart, target etc..? They have enough trouble doing the few tasks they are suppossed to be doing.

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Arkansas’ GIFT College Investing Plan Contest To Give Winners One Year of Fully Funded 529 Accounts

State Treasurer Martha Shoffner announced today that the GIFT College Investing Plan, Arkansas’ 529 college savings plan, is celebrating 529 College Savings Day (May 29) with a series of contests for existing account owners and those who open a new GIFT Plan account from now until May 31, 2010. read more

Workplace | KiwiSaver | Advice

Question: can a single person who rents itemize their taxes if their deductions are greater than the standard deduction?

Answer: Anyone who has eligible Itemized Deductions greater than their standard deduction may and should itemize. Most of the time, someone without mortgage interest and property taxes doesn’t have enough to itemize, but if you do, you definitely are allowed to.

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It’s just a great big new tax on everyone’s brain cells

ONCE the excitement of the Henry review and the budget wore off, life seemed to lose its lustre for tax experts.

Question: For U.S. federal business income tax purposes, does the federal meals and incidentals rate (M&IE) already?

reflect the 50% allowable deduction for meals/ent., or do I take half of the entire (or of some other fraction, since there’s incidentals, which I think are fully deductible, in there, too) amount?

E.g., Los Angeles MI&E is $100 a day. On taxes, deduct $100, $50, or some other amount? Thank you.
Why can’t I deduct more than 50% of ME&I, which includes incidentals, which should not be subject to the 50% deduction limitation!?

Answer: No, the rates are at 100% because they are not necessarily “halved ” on the tax return in every case. For example, truckers subject to DOT rules are allowed to deduct 75% of the M&IE rate. So you must do the math to get the allowable 50% of the tabular amount

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‘Cost segregation’ carries tax benefits

NORTH BAY – When a business is looking at purchasing a building for commercial use, one way to maximize deductions on a tax bill is to use cost segregation.

Tax Forms & Deductions : How to File an Amended Tax Return

Question: How each item treated for tax return 2005/2006?what are FBT liabilitiesfor Kaos from provisions & benifits?

Maxwell Smart commenced employment with control on 1st april 1985.He resigned on 31swt march 2006 to take up a position with Kaos.He was aged 46.
Details of smart’s financial affairs for 2005/2006 year of income are as follow.on retiring he was paid the following amounts(before PAYG deductions).
1. A superannuation payout of $300,000 from the control Superannuation Fund,He elected to rollover $135,000 into the Kaos Superannuation Fund.There was a $30,000 undeducted contribution component in the $300,000 payment but this was not rolled over.
2.Accrued annual leave $12,000.
3.A lumpsum payment of $100,000 for signing a contract that he would not divulge any ofControl’s secrets to Kaos for a period of three years.
Smart’s rermunerative package with Kaos.
-base salary $150,000pa
-Employer contributions to hte Kaos Superannuation Fund $30,000
-subscription to spy magazine $300
-BMW car cost $115,000.Smart travelled 10,000km from 1 april 2006 to 30 june 2006.

Answer: r u serious?

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Hockey sweats over tax replacement plan

It was one of the more awkward versions of pass the parcel. No one much wanted to play: the parcel contained a great big stink bomb.

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WesternZagros Announces 2010 First Quarter Results

CALGARY, ALBERTA–(Marketwire – May 27, 2010) – N