The IRS Deductions Blog

Posts Tagged ‘deduction’

Question: If I organize a Neighborhood Pet Rodent Olympics, can I take a tax deduction as a non-profit agency?

I am also going to outline a plan for Ultimate Hamster Fighting (UHF) with no rules combat in a death cage… I am going bill that one as a Police charity event. Do I need special construction permits for the cage/arena?

Answer: Well, you can always go underground and build without permits and such. The only problem then is rats. A rat might snitch on you. Good luck.

Items on Amazon Right Now for Pet Deduction:

Wareham-area happenings

Classes/seminars Soule Homestead Education Center Preregistration is required for all programs, unless otherwise indicated. To register, call 508-947-6744 or e-mail soule1@verizon.net. Leave your name, title of program, number of people attending, children’s ages (if applicable), and a phone number where you can be reached in the event of a cancellation or postponement.

Dog Park Chronicles: Mom, we’re on the news!

Question: Where do I report interest income from a family member?

I hold a recorded second mortgage on my son’s home and I need to report the intrest I have received on that loan.. I am using Turbo Tax, and the only option is for interest reported on a 1099-int (which obviously I don’t have).. SHould I report it as “Other Taxable Income” or what? I will report the income so he can claim the interest deduction

Answer: Remember to list it on schedule B *with* your son’s name and SSN. That way his deduction on line 11 of his schedule A (it’s a different line because there is no 1098) will stick. He includes your name and SSN on his return.

Items on Amazon Right Now for Mortgage Deduction On Second Home:

Quote roundup: Wisconsin workers, residents weigh in on Walker’s budget bill

On another day of heavy protest in Madison over Gov. Scott Walker’s budget-repair plan, many teachers around the state joined in by not showing up for work. Many schools in the Madison area, as well as around the state, were closed today in opposition of Walker’s bill. Wisconsin’s Democratic Senators also skipped work and headed to Rockford, Ill., in an effort to stop the bill from being passed.

Finding The Amount Of Mortgage Interest That One Can Deduct

Question: Anyone with good ideas how the government can help us with the gas price ripoff? I have a few.?

ways government can help citizens who are strapped because of the gas price gouging ripoff:
1- Mileage tax deduction: based on odometer readings over a year. This will also help truckers, taxi drivers, & others who make their living by driving. This would be based on the IRS standard mileage allowance. That way, those who have to drive a long way to work or buy groceries will get some tax relief. It would also help the economy by helping those who want to go on a vacation trip.
2- Tax deduction if you buy a car that gets good mpg: 25+ (Not just Bugs and Echos)
3- Anyone who makes less than a million dollars and doesn’t own a car would pay no income tax.
4- Tuneups and other expenses to improve car performance and gas mileage would be deductible.
5- Those who take trains or buses to work could deduct fares.
6- Tax breaks for businesses who let their employees work from home as much as possible.
Can you think of others?

Answer: The gas tax pays for metro transit and sidewalks in parks, bridges, tunnels, etc so why give a discount to walkers or city dwellers who have access to these things and don’t pay for them anyway? Why penalize the rural area people who have to driver greater distances (keep in mind, they at least contribute to the transportation system). Your plan gives an unfair advantage while creating another economic deficit.

Reagan did give tax incentives to alternative energy homes etc. A plan that worked and those homeowners are still reaping the benefits. Explore algae bio-fuels, this keeps our corn in supply so it doesn’t tax the food system and it’s a much higher production. This technology is very new though. Give environmentalists the giant boot! They are one of the biggest reasons why we don’t have new refineries and why other companies don’t start their own. The habit creates non-competition which is what we see now. Open up US oil reserves rather than an OPEC dependence. This means we have to repair the Alaskan pipe line. Incentives for people who do carpool. NUMBER ONE, remove tax shelters for the oil business. Simply passing the fuel taxes onto them just means they will pass it back onto us but if they are taxed fairly, the more profit they make the more they get taxed it would control it a bit better. Simply tossing the fuel tax out the window means it will have to be collected elsewhere though so there is no logic in that.

Items on Amazon Right Now for Irs Tax Deduction For Mileage:

2011 tax filing season opens with renew credits, E-File and extended due date

The Internal Revenue Service kicked off the 2011 tax filing season with new and expanded services, features and credits to help taxpayers. The agency also encouraged taxpayers and tax practiti…

Teen Driving, Business Mileage, Engine Light, CarCheckup Solution

Question: If I want to NET a certain amount of money annually, how can I estimate how much I need to GROSS?

I wanted to NET either $55,000 or $75,000 a year, but wanted to figure out how much I need to pull in total. I’m single, no children, I rent, and would take the standard deduction.

Answer: Liberal asskicker is wrong, because not all income is taxed at the same rate. Your bracket is the rate that applies to all dollars in excess of the amount needed for you to be in that bracket. All dollars up to that amount are taxed at a lower rate.

$9350 is not subject to income tax, due to the standard deduction and the exemption for yourself.

If your gross in 2010 was between $43,350 and $91,750, then your income subject to income tax would be between $34,000 and $82,400, and your income tax (calculated using the 2010 Form 1040-ES) would be $4681.25 plus 25% of the amount by which your taxable income was over $3400, your medicare tax would be 1.45% of your gross, and your social security tax would be 6.2% of your gross. Therefore, your total tax would be $7997.525 plus 32.65% of the amount by which your gross exceeded $43,350. Therefore, your net would be $35352.475 plus 67.35% of the amount by which your gross exceeded $43,350. Therefore, for your net to be $55,000, which is $35352.475 plus $19,647.525, you would need 67.35% of the amount by which your gross exceeded $43,350 to be $19,647.525, which means you would need the amount by which your gross exceeded $43,350 to be $19,647.525/67.35%=$29,172.272, which means you would need to your gross to be $43,350+$29,172.272=$72,522.272.

If your gross in 2010 was between $91,750 and $106,800, then your your social security tax would be 6.2% of your gross, your medicare tax would be 1.45% of your gross, and you income tax (calculated using the 2010 Form 1040-ES) would be $16781.25 plus 28% of the amount by which your taxable income was over $82,400. Therefore, your total tax would be $23,800.125 plus 35.65% of the amount by which your gross exceeded $91,750. Therefore, your net would be $67949.875 plus 64.35% of the amount by which your gross exceeded $91,750. Therefore, for your net to be $75,000, which is $67,949.875 plus $7050.125, you would need 64.35% of the amount by which your gross exceeded $91,750 to be $7050.125, which means you would need the amount by which your gross exceeded $91,750 to be $7050.125/64.35%=$10,955.905, which means you would need to your gross to be $91,750+$10,955.905=$102,705.91.

Items on Amazon Right Now for Standard Deduction Child:

Tax cut package: What’s in the bill and what it costs

Now that President Obama has signed the Tax Hike Prevention Act of 2010, taxpayers will have some certainty about their tax situation, if only for the next 24 months.

Tim Walz: Middle Class Tax Fairness Act

Question: Loan Origination Fee less than 1% of mortgage amount: 1 point for tax deduction purposes?

I bought a house last year and paid about $150 less than 1% of the mortgage amount as a loan origination fee. Now that I am preparing my tax return, does this fee count as a point paid? Are partial points allowed? What should I do?

Answer: Was the fee charged as a percentage of the loan amount or was it coincidentally about $150 less than 1%? If it wasn’t expressly calculated as a percentage (or fraction of a percentage) then it isn’t deductible.

See IRS Form 530 linked below.

Items on Amazon Right Now for Tax Mortgage Deduction:

Tax legislationheads to Obama

share: digg facebook twitter WASHINGTON — Congress approved the most significant tax bill in nearly a decade late Thursday, overcoming liberal resistance to continue for two more years tax breaks enacted under President George W. Bush and to provide a fresh boost of federal support to the tepid economic recovery. The package, brokered by President Barack Obama and Republican leaders in the wake …

Mortgage Insurance Tax Deduction 2010, 2011