The IRS Deductions Blog

Posts Tagged ‘paycheck’

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:

Allocation and apportionment of expenses for Sec. 199 purposes: for many taxpayers, calculation of the Sec. 199 deduction will require an enormous … An article from: The Tax Adviser $9.95 This digital document is an article from The Tax Adviser, published by Thomson Gale on June 1, 2006. The length of the article is 5685 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: Allocation and…

Sec. 382 limit: special rule for controlled groups.(tax calculation following ownership change): 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 July 1, 2001. The length of the article is 1740 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:…

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

Question: Proper way to fill out Schedule E?

I rented out my house for 153 days in 2008 when I moved out of state. I lived in it for the other 213 days during the year. So, when filling out the Schedule E, should I include 153/366 (41.8%) of the expenses (real-estate taxes, mortgage interest, insurance, utilities, and depreciation) on this form, and then the other 213/366 (58.2%) of real-estate taxes and mortgage interest on the Schedule A? Does that sound correct?

I tried doing this in TaxAct. When I put in the 41.8% of the expenses into the system from my calculations, the system deducted an additional 41.8% from the expenses based on the Vacation Home Worksheet. So essentially, I only got to take 41.8% of 41.8% of my deductions. That does not sound correct.

Any help would be greatly appreciated!

Answer: If the house was rented under vacation home rules, you can only deduct expenses up to the amount of income generated.

Also, expenses must be deducted in specific order:

1. The rental portion (153/366) of the mortgage interest, real estate taxes, and casualty losses. The rental portion is subtracted from the rental income on Schedule E. The personal portion (213/366) of each expense is entered on Schedule A
2. Advertising, commissions, legal fees, office supplies, and all other expenses not related to the property itself.
3. Expenses related to operating or maintaining the property, for example, lawn care, painting expenses, cleaning expenses.
4. Depreciation and other basis adjustments to the dwelling, improvements, furniture etc, up to the amount of the rental income minus the deductions for 1, 2, and 3.

I expect the software is designed to follow these rules. Not sure how Tax Act works, but you probably only have to enter the numbers once on the worksheet, then let the software transfer the numbers over to the schedules you need. After you complete the worksheet, check your schedule A to see if the personal portion transferred over automatically. If not, then add the personal portion at that time. Then check Schedule E the same way. Subtract expenses in the correct order.

Rental expenses in excess of rental income carry forward until such time as you have enough rental income to deduct them, or until you sell the property. You cannot use losses from vacation property rental to offset other income from other sources.

Good luck

Items on Amazon Right Now for Estate Tax Deduction Calculation:

The Mortgage Math Workbook: Compound Interest Calculations, The Mortgage Tax Deduction And Affordability Considerations $4.95 Learn how the math behind mortgage payments works and why the mortgage tax deduction only works for high earners with big mortgages. This workbook includes step-by-step solutions for typical mortgage math problems, including solving for the APR (Annual Percentage Rate.)Table of Contents:How Compound Interest Adds UpThe Mortgage Formula Calculating Fixed Rate Mortgage PaymentsTables For Fixed Rate …

Host Hotels & Resorts, Inc. Reports Strong Performance for the Fourth Quarter and Full Year 2010

Host Hotels & Resorts, Inc. , the nation’s largest lodging real estate investment trust , today announced results of operations for the fourth quarter and full year ended December 31, 2010. Â

Question: How is Army mid-month pay calculated?

For the life of me I cannot figure how mid-month pay is calculated. It varies by as much as $200 from one month to the next. It’s not a simple half of all pay minus deductions minus allotments; it’s not half of standard pay minus standard deductions (the part that’s the same absolutely every month) minus allotments. It has been anywhere from $40 to $400 less than either of those amounts. Our finances are so tight I only have about $20 to spare based on the monthly pay — and not being able to count on a set amount for either paycheck makes it really hard to budget.

Answer: You need to loosen up your finances..

Go talk to your pay office, or read whats underneath your LES.. it says what was taken, from there you should be able to figure the rest out i think.

Items on Amazon Right Now for How To Calculate Deductions On Paycheck:

How to owe nothing on your federal tax return

You have the control to determine whether you owe in April. Learn more here.

Excel Busn Math 41: Payroll Deductions With Ceilings (FICA)

Question: is it better to do a pre tax or after tax deduction on your paycheck?

oi recently got my 401k paperwork and im kind of lost about the whole thing and i want to know if it’s best to do the pre tax or the after tax deduction.

Answer: A pre-tax contribution to a 401(k) means you pay less tax NOW, but ALL withdraws are taxed as regular income. An after-tax contribution (to a Roth Account) means you pay more tax NOW, but NO tax when you withdraw. If you can afford the SAME actual contribution, the after tax amount will result in MORE retirement income. If you have to reduce the contribution to cover the taxes, you come out about even over time.

Items on Amazon Right Now for Tax Deduction Paycheck:

QuickBooks Basic Payroll 2012 $79.99 Run payroll in minutes! With Intuit QuickBooks Basic Payroll, you can easily pay employees and instantly calculate payroll taxes. Seamless integration within QuickBooks saves time. Have confidence that you’re doing payroll right. Get free expert support from payroll specialists who are ready to help. System Requirements – Windows XP (SP2), Vista or 7 At least 2.0 GHz Pentium 4 processor, 2….

QuickBooks Enhanced Payroll 2008 [OLDER VERSION] $299.95 We make it efficient to do your entire payroll in-house. Enhanced Payroll gives you powerful tools to help save you time and improve the accuracy of your payroll–right within QuickBooks financial software (use your existing QuickBooks software or the included QuickBooks Simple Start CD). Track Worker’s Compensation rates and deductions (requires QuickBooks Pro, Premier or Enterprise Solutions) …

Your Paycheck $9.95 Your Paycheck was developed to answer questions about payroll taxes and employment laws and how they affect the American wage earner. Ideal as a reference book in the payroll department-any staffer can refer to the book to answer commonly asked questions. This is an easy-to-read manual explaining the basics such as getting an SSN or completing a W-4, then progressing to withholding informat…

Riggins: Economic policies are worth thank you

Thank you President Obama for the following: 1. The tax cut 95 percent of working Americans received. Even though my tax reduction was only $30 per paycheck (multiplied by 24 pay periods) $720 annually is nothing to sneeze at.

New Paycheck Deduction

Question: For U.S. federal business income tax purposes, does the federal meals and incidentals rate (M&IE) already?

reflect the 50% allowable deduction for meals/ent., or do I take half of the entire (or of some other fraction, since there’s incidentals, which I think are fully deductible, in there, too) amount?

E.g., Los Angeles MI&E is $100 a day. On taxes, deduct $100, $50, or some other amount? Thank you.
Why can’t I deduct more than 50% of ME&I, which includes incidentals, which should not be subject to the 50% deduction limitation!?

Answer: No, the rates are at 100% because they are not necessarily “halved ” on the tax return in every case. For example, truckers subject to DOT rules are allowed to deduct 75% of the M&IE rate. So you must do the math to get the allowable 50% of the tabular amount

Items on Amazon Right Now for Federal Income Tax Deduction Rates:

Financially Speaking: Should you pay off your mortgage early?

Several years ago, the Federal Reserve Bank of Chicago published a paper titled “The Tradeoff Between Mortgage Prepayment and Tax-Deferred Retirement Savings.” The authors performed a study that compared long-term financial consequences of making…

Tax Refund Calculator 2010, 2011