The IRS Deductions Blog

Posts Tagged ‘deduction’

Question: what were the medicare premiums in 2009 for both A and B?

I’m preparing 2009 taxes for my father was was deceased in Jan 2010. He had many medical expenses in 2009, so I’m claiming them for deductions. In the grand paperwork shuffle, I cannot seem to find any paperwork denoting the premiums for Medicare part A & B for 2009…anyone know what the monthly or yearly costs were?
…he was not my dependent…I am filing HIS return, not mine. You are correct though that Medicare premiums are NOT allowable deductions…I misread the turbotax prompt.

Answer: Do you mean that he was your dependent in 2009? Are you claiming his medical costs as your out of pocket expenses?

The Medicare premium is deducted from his Social Security check before he receives it. Thats why you don’t see any paperwork. The amount was $96.40 per month and now it is $96.50 per month for one person. He also must have paid the 20 per cent that Medicare does not pay, or he may have had a gap insurance policy. That costs about $150 a month unless he had zero share of cost Medicaid which pays that.

I hope you are correct about using his out of pocket costs as a deduction on your tax return.

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Woman pleads guilty to falsifying tax returns

A woman who was a manager for Jackson Hewitt has pleaded guilty to aiding and assisting in the filing of false returns.

Tax Forms & Deductions : Can I Deduct My Pet’s Medical Expenses on My Taxes?

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.

Items on Amazon Right Now for Tax Deduction Malaysia:

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: lets be honest……?

why blame repulicans or democrats..??? we all know that both parties contain enough power mad people that only are there to get reelected and amass their power base for when they retire, so they can then get the big bucks speaking, lobbying and consulting…there might be 1 or 2 people in gov’t that started out looking out for the small guy, but after 2 or 3 years in the corruptness of washington..they either play the political game or go home….its time we americans banded together and demanded someone to look out for us…..enforce the laws…have a flat tax..no deductions, no cheating….no lobbying or sitting on a corporation board after you get out of gov’t….get a freekin energy policy that gets us off oil…we have the brainpower to go to wind, solar, tidal, geothermal…we just dont have someone with the guts to say so in public….
i think once america solves this energy problem, we will return as the superpower we were….

Answer: You must be a member of the Common Sense Party!
Thank Goodness!!
I thought I was alone here!

Special Interest groups and Lobbying is getting in the way of Democracy. This is becoming more dangerous to the future of America than any terrorist organization.
Big Business and Big Money should NOT determine public policy and that is exactly what is happening!

I too feel that many politicians in every political party start out with the best intentions and then somewhere along the line their morals become corrupted and misguided. It seems the all mighty dollar blinds many to the proper path. Stronger safegaurds need to be in place against special interest groups and lobbyists. I see that was addressed in the first 100 hours. Time will tell if anything legislated now will be effective. It is a HUGE problem…… The selling of America to the highest bidder!

I also hope something is done in regard to the legislation passed in 2005 regarding Eminent Domain. A travesty!!

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Compact Solar Workshop / Build Our Modular Office Furniture / Tailor a Sewing Room to Fit Your Home / Tax Deductions You Should Know About / TFH’s Whole House Repair Manual (The Family Handyman, Volume 33, Number 2, February 1983) …

State tax incentives to promote the use of solar energy …

List of top Chinese newspaper buzzwords in first half released

The words “housing prices regulation,” “Shanghai Expo,” “earthquake” and “low-carbon” were among the list of top buzzwords found in Chinese newspapers in the first half of 2010, Beijing Evening News reported on July 19.

Tax Credits With Solar Energy DIY Solar

Question: Paid with Guaranteed Payments – can I deduct SE business expenses?

I am getting paid as an independent contract in a business that I own a small portion of, and my K-1 reports this payment as Guaranteed Payments to Partner. I know the method of reporting is correct, but since I am filing as a self-employed independent contractor, I would hope to be able to take my self-employment business expenses (expenses that the company did not reimburse me for) as deductions. Expenses such as car, travel, meals & entertainment, advertising/promotional, etc.

The argument that I would make is that the earnings I received as Guaranteed Payments to Partner would not have been possible without incurring business expenses along the way, thus the expenses should be deductible. My expenses equate to 18% of my Guaranteed Payments income, so this will be a significant deduction.

Is this logic correct? Can anyone point to somewhere in the code that allows this, or just give me clarity? I can’t find anything online or in the code that allows or disallows this.

Answer: I believe that you are correct. I would further suggest that you go to the IRS website and look for Schedule C and its accompanying instructions. I have reason to believe that if you examine this schedule and the instructions for filling out this form the answer(s) to your question will become self apparent.

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Expenses of stock redemption necessary for corporation’s survival were not deductible.: 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 January 1, 1992. The length of the article is 1113 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.From the supplier: …

Lease termination payments not deductible.: 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 August 1, 1996. The length of the article is 790 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.From the supplier: IR…

Airline costs allocable to vouchers issued are not deductible until vouchers are redeemed for tickets. (Expenses).: 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 May 1, 2002. The length of the article is 1470 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 DetailsTitle: …

Tax Law Change Could Hit Small-business Owners

Tax Law Change Could Hit Small-business Owners

The Savior

Question: Delivery Driver Tax Deductions?

I have driven 32,512 miles in 2009 for delivery.
I have a detailed mileage report of my starting miles, and ending miles each day.

Using turbo tax deluxe i am getting NO refund whatsoever when putting this data in.
I even put crazy high numbers to see what would show up, and no change….

Did some laws change or what gives?
Last year it was only like a 500$ difference, but 500$ helps alot when you spend 2,680$ on gas in 1 year….

USA, Texas, Travis county, Austin
about 16,000$ a year.
+ 4,000$ in tips

Filing single.
New home owner (got that 8k for me)
No dependents…
tips ARE reported by my employeer
So they are “added” to my paycheck, thus taxed. Then the tip is deducted from my check so i dont get double tiped

Answer: If you take the IRS standard mileage rate of 54.5 cents per mile that will be OK and you won’t have to keep track of other expenses. I’ll bet that after doing this you will find you are working for free..

http://www.taxdeductionsbenefit.com/

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ARRL Board Considers Celebrations, Changes and Conferring of Awards at 2010 Second Meeting

The ARRL Board of Directors held its Second Meeting of 2010 July 16-17 in Windsor, Connecticut, under the chairmanship of President Kay Craigie, N3KN. International Amateur Radio Union (IARU) Secretary Rod Stafford, W6ROD, and Radio Amateurs of Canada (RAC) President Geoff Bawden, VE4BAW, were guests of the Board. At the two-day meeting, the Board considered a number of reports and acted on sev…

Current Allowable Automobile Mileage Tax Deduction 2009, 2010