The IRS Deductions Blog

Archive for the ‘Individual Tax Deductions’ Category

Question: Do you think we should nationalize healthcare?pro’s and Cons?

pros:
-cheaper healthcare
cons:
-less coverage than your original health care
-a deductible of 20% when your original cheaper AARP deductible, is about 60%
-You do not have the privelage of choosing your own doctor
-once the healthcare reform is passed they will raise the price of their health care to an all time high
-you sign on to the helathcare reform bill with a contract that raises annualy, but it just so happens they are in dire need of money and need to raise your bill
-you recieve less treatment than your original plan, and do not recieve the same coverage that your AARP plan covers

Enough of the pros and cons what are your thoughts on this, liberals and conservatives welcome : )

Answer: No !!!!!

http://www.economicpolicyjournal.com/2009/07/whats-in-healthacre-bill.html

Items on Amazon Right Now for High Deductible Health Care Reform:

MSNBC (11-26-10) – Why We Need Health Care Reform – Sky-High Deductibles Force Painful Choices

Question: When I donate a car to charity, it is tax deductible, what exactly does that mean?

will i be getting cash then or does it just reduce my taxable income by the amount the car is worth or does it reduce the amount of taxes I owe the next time I file my taxes in April. How does one determine the amount the car is worth if was not actually sold. can anybody out there speak from experience???

Answer: Whatever the charity sells the car for is what your allowable deduction will be. You must itemize deductions in order to get any tax benefit.

If this is your only itemized deduction it probably won’t be of any benefit unless the value is greater than the $5,700 Standard Deduction For 2009 and even then the only benefit will be the difference between your Itemized Deductions and the Standard Deduction Amount. It would reduce your taxable income by that amount.

The tax savings would be the amount of the deduction times your marginal tax rate. If you are single and had $6,700 in deductions and your marginal rate was 15%, the tax savings would be $150 or less.

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Charity & Christian Doctrine : Are Donations to Charities Tax Free?

Question: I have a question about my hsa (health savings account) that I have with my job?

I’m contributing $500 to the account and my company is putting in $1200. Is all of that money available right away? I’m asking because I just found out I’m pregnant and after I went to my first dr appt I got a letter in the mail stating I have to pay them $2400 (my deductible I think) by the end of May. I of course dont have that and want to know if I can use my money in the hsa right away.

Answer: You may use the money in your HSA right away.
Before paying the $2400 though, I would check with your insurance company to see if the $2400 is the, “allowed amount.” In other words, is the $2400 the negotiated rate approved by the insurance company, assuming you are seeing an in-network provider.

Items on Amazon Right Now for Health Savings Accounts Deductibles:

NDL Benefits – Health Savings Account – June 2011

Question: What are the stipulations for passive activity loss carryovers?

My wife and I own several rental properties, however we make over $150k a year. All of our properties are operating at losses, but we are not currently able to deduct any of the losses because of our income.

How do we go about carrying forward this passive activity loss tot he time when we sell the properties? How do I document this? I reported all of the losses on my taxes for this year. Do I just need to keep track of the non-deductible amounts? It is already itemized on my tax return.

Thanks in advance.

Answer: You track all passive activity losses, allowed an unallowed, on Form 8582.

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The Volvo Legend www.volvocountry.com Pre-owned Superstore

Question: (public finance) economic health policy problem?

Suppose that an individual’s demand curve for doctor visits per year is given by the equation
P = 150 − 25Q,
where Q is the number of visits per year and P is the price per visit under a private medical system.
Suppose also that the marginal cost of each doctor visit is $100. Suppose the government introduces
medical insurance with no deductible and no coinsurance rate. (The government will recoup the $100
through higher premiums or taxes on rybody, but the share paid by this individual is negligible.) What
is the economic welfare impact of such a policy?

Answer: Sorry for saying that the policy cannot save any butt. Even when the government has paid the insurance fee of $100.The reason is the doctor will maximized his profits.
His total revenue will be 150Q-25Q*2
So his MR is 150-50Q
MC=MR, 150-50Q=100
Q=50/50=1 he will open his door for a patient.And that will not improve the community’s well-being for sure.

Items on Amazon Right Now for Insurance Deductible Financing:

Insurance Facts : How to Get Cheap Car Insurance