The IRS Deductions Blog

Posts Tagged ‘finance’

Question: With as much time as we spend here on Y/A, can we claim our computers as a Tax Deduction?

Answer: I wish I was getting paid to spill my vast amount of knowledge everyday on here.

HA! HA! HA! =)

Items on Amazon Right Now for Tax Deduction Computers:

Can I Deduct the Cost of a New Computer on my Taxes?

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.

Items on Amazon Right Now for Charities Tax Deductible:

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

Question: Is my laptop tax deductible?

I’m going to be buying a laptop, and was wondering if it’s tax deductible as i work for an internet company that requires me at times to access the net for research on a computer at home.

Answer: If it’s for business and you can prove it, then more than likely yes. Ask your accountant though.

Items on Amazon Right Now for It’s Deductible:

Learn About The Gift Tax and ItsDeductible

Question: What all vehicle deductions are allowed on my 2010 income taxes. I’m a landlord?

Besides insurance, maintenance, tags, what else can I deduct for business?

Answer: I claim a mileage deduction vs. trying to use every item.

On my business vehicle which I drive 15,000 miles per year. I claim that 90% of those miles are business related. The IRS gives (2010) $.50 per mile deduction on all business related mileage. Which means I deduct about $6750 on vehicle usage.

Also you can deduct vehicle license fee’s separately because they are considered taxes.

Items on Amazon Right Now for Income Taxes Deductions:

Tips & Advice for Income Tax Deductions : Tips for Transportation Worker Income Tax Deductions

Question: Tax Calculation Short Term Capital Loss?

Say, I bought shares of A,B,C(20k each) on 6th June. And I have sold all my shares on 25th December(holding time less than 1 year). I sold A and B for 22k each. Whereas I sold C for 6k. So, my net sales value becomes 50k. It means I have incurred a loss of 10k. If my net taxable income after all the deductions is say 1,80,000(and I am a male). Then is tax will be calculated on 1,80,000 or 1,70,000 ( 1,80,000 – 10,000 ).

Answer: A capital loss (short-term/long-term) can be carried forward for a maximum period of 8 years from the assessment year in which the loss was first incurred. A short-term capital loss can be set off against any capital gain (long-term and short-term). However a long-term capital loss can be set off only against a long-term capital gain. Read http://mytaxes.in/index.php?topic=155.0

Items on Amazon Right Now for Income Tax Deduction Calculation:

COURT PREVENTION OF ABUSIVE TAX ASSESSMENTS

There has been considerable discussion lately about tax avoidance cases in which taxpayers have structured their transactions in an abusive manner, which is unacceptable to the government. While the courts try to prevent is misbehaviour by taxpayers, they also must deal sometimes with abusive application of the law by the tax assessment authorities of the Revenue Department.

Tax Rebate Calculator 2010, 2011