The IRS Deductions Blog

Archive for the ‘Tax Deduction Help’ Category

Question: Was Reagan a socialist?

After all, it was he that expanded the Earned Income Tax Credit that gives poverty level workers a “rebate.”

“Enacted in 1975, the initially modest EIC has been expanded by tax legislation on a number of occasions, including the more widely-publicized Reagan EIC expansion of 1986. The EIC was further expanded in 1990, 1993, and 2001 regardless of whether the act in general raised taxes (1990, 1993), lowered taxes (2001), or eliminated other deductions and credits (1986). Today, the EITC is one of the largest anti-poverty tools in the United States (despite the fact that most income measures, including the poverty rate, do not account for the credit), and enjoys broad bipartisan support.”

http://en.wikipedia.org/wiki/Earned_income_tax_credit

I would REALLY appreciate it if a Republican would offer a thoughtful answer to this question. How is Reagan’s build-up of the EITC any different than what you’re saying Obama is trying to do.

PLEASE read the entire post before answering.

Answer: Don’t forget it was a Republican idea from the beginning. First proposed by Nixon, signed into law by Ford, and increased hugely by Reagan in 1986.

I swear that some Republicans wake up in a new world every single day. All it takes is somebody to create some straw man about somebody else’s policy position, and they pile on without asking themselves… is this true, and if not have Republicans actually done this thing?

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Question: If we have a cosigner for a mortgage do we both get to claim it on our taxes?

My wife and I would like to buy a house, but with a low credit score (because of no credit) we will need to get a cosigner. When it comes time for tax time, do the cosigner and the homeowner split the tax benefits (Deductible Interest and taxes paid) or does only one of the two parties receive it?

Answer: The person who actually pays the money receives the tax deduction. If both parties pay part of the mortgage, both parties can take part of the deduction equal to their percent of the moneys paid.

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Tax Court issues split decision on capital vs. deductible expenditures.: An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on October 1, 2001. The length of the article is 893 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitl…

Maxing Tax Deductions for travel

When it comes to supporting amounts claimed as a tax deduction for travel, self-employed business owners have to meet a different level of tax compliance.

See what we collect Collecting Holly Berries

Question: Taxes for Sole Proprietor business in Malaysia?

Hi All,
I have just embarked on a sole proprietor business in Malaysia. I have a few questions which I hope some of the experts out there can help to answer:
1) What are the tax forms that I would need to fill up next year?

2) What are the type of deductions that I can use as my business expenditure? Can I use:
i) Housing loan – I’m using my current house as the business premise
ii) Car loan – I’m using my current car as my business mode of transport (to deliver the goods)
iii) Parking tickets, petrol and tolls – I incur all these costs when i deliver the goods
iv) Entertainment – Once in a while, I will have to take my clients out for dinner.
v) Any other things that’s considered as business expenditure? (Electricity, water bill)?

3) Can I also pay myself EPF (Employee portion, employer portion or both)?
Also, I currently have 2 workers that i’ve employed. How do I pay their EPF or make them pay their taxes?

Thanks in advance for your expert help.

Answer: I don’t really know the details, but the basic idea is that anything related to your business can be deducted(excluding property, plant and equipment).

Property, plant and equipment (PPE) are not considered as allowable expenses. Instead, the relief will be given via something called capital allowance (CA). For instance, if you purchase a motor vehicle for business use, you can claim CA (There are different rates for different PPEs). However, note that buildings are not included under CA. They fall under the Industrial Building Allowance (IBA) instead. I guess your house would not fall under the IBA, thus not deductible (since it is not an industrial building).

If you have purchased your car prior to starting your business, I’m not sure whether CA is allowed or not.

Stuff like parking tickets etc. are deductible (since they relate to your business).

For entertainment, there are different rates. For instance, if you entertain your staff (e.g. family day), it is 100% deductible. For certain parties, the entertainment cost is only 50% deductible. On the other hand, certain entertainment expenses are not deductible. So it really depends. For customers…it should be 50%.

For EPF, you need to make a monthly contribution but I’m not very sure about the procedure. Probably you can take a look at the EPF website.

For employees’ personal taxes and yours as well, depending on their salary, marital status, and number of kids, there is a table (Schedular Tax Deduction – Also known as PCB) which tells you the amount of tax to deduct from their salaries each month(to remit to IRB). You can download that from the IRB website.

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Trade push reshaping Islamic finance’s regional rivalry

MANAMA, Aug 19 — Arshad Khan, the chief of the Bahrain Financial Exchange, had envisaged a global Islamic trading platform when he set out to work with Malaysia’s stock exchange this year. Though the talks fell through, Khan thinks there may be other partnerships in the future, reflecting a desire to collaborate that could help close an age-old …

Payroll and Human Resource Management System Introduction

Question: I cant make sense of this FAFSA question and all the help provided refers to US tax forms…?

What was your parents’ adjusted gross income for 2008 (question 86)?

How much did your father/stepfather earn from working (wages, salaries, tips, etc.) in 2008 (question 89)?

So far i think the first question does not include taxes…but then if my mother does not work, the second question would be THE EXACT same answer as the first ! That sounds weird – does that mean that the second question is actually after income tax deduction ?

help!
Then that means that the wages, salaries, tips are greather than or equal to AIG because its the same thing as AIG except for the deductions ?

Answer: Adjusted gross income (AGI) is income *minus deductions.*

How much someone earns is not the same because deductions haven’t been figured yet.

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For some, tax season not yet over

You filed your federal tax return, cashed your refund check and likely aren’t thinking about ta

Tips from the IRS – 2008 tax return–don’t miss out on free money!

Question: How comfortable will you live on STG 26,000 pa ?

I need approximate examples for NI and income Tax Deductions, council tax, utility/phone bills and living expenses for 1 person, together with rent rates for 1 person accomod in Essex, in order to calculate the remaining income! Thx

Answer: The biggest deduction from your income is likely to be income tax and NHI This will depend on your age as over 60 you get more allowances. You have a personal allowance of I think around £4900 but you can check all this and the NHI on the Inland Rev Website. Once you have earner over your personal allowance you are taxed 10% on £2000 and 22% on the balance.
Council tax varies so you need to check similar properties in the area. Single occupation gets 25% reduction. Rent depends on type of property but few rents even for the most modest places are less than £70-£80 per week and that is here in the North West.utility bills and phone bills will depend on your usage and utility costs are high.Modest users I assume you are out all day would have for gas and electric and water (if you have a water meter) at least £1000 pa, You should have roughly half of your income left for food clothing holidays and any vices you might have

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The Council Tax (Deductions from Income Support) Regulations 1993 Amendment Order 1996 (Statutory Instruments: 1996: 712) …

QUESTIONS FOR GUBERNATORIAL CANDIDATES

1. The state general revenue fund faces a multibillion-dollar shortfall in the two-year budget you will have to introduce in a few months. As specifically as possible, how will you fix this problem?

Fulford & Zagami’s, Warning to the Illuminati: (part1)