The IRS Deductions Blog

Posts Tagged ‘tax.deduction’

Question: What will be the net salary for 2,861 euro gross after tax deduction in netherlands. I also need living cost?

I got an offer from Leiden University. My employee said my gross salary will be 2, 861 euro. How much will be my net salary. I want to know is that enough to support my family (me, my wife and kid). Is it possible for me to apply for 30% rule as I will stay only one year over there.

Answer: you can support your wife and kid but living in the “randstad’ ( the big cities in the west of holland) is expensive.

Items on Amazon Right Now for Family Support Tax Deduction:

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Budget 2011 speech (Part 3): Growing Incomes for all Singaporeans

C.1. To raise Singaporeans’ incomes over the next decade, we must first sustain our economic growth. Without a growing economy, no strategy can realistically raise incomes, whether for the average citizen or those at the lower end of the workforce.

PML Progressive Multifocal Leukoencephalopathy

Question: Has anyone claimed the 50 cents / Km from CCRA on a home business?

If I earn a salary and also have a secondary home business, say advising about RRSPs, can I claim the 50 cents / Km when I drive to Thunder Bay for a wedding & fishing and talk to relatives about their RRSP?
I know women sell cookware and cosmetics as a part-time job, and I presume they claim their mileage as a business expense against their combined yearly income (full time job $$ + part time job $$).
At 7 Litres per 100 Km; @ $1.25 / L.; 2000 Km; gas costs are $175. The tax deduction is (2000 X .50) $1,000 off my taxable income, or (at 30% tax bracket) $300 in my pocket.
Sound reasonable? Have I made an error?
If Ford Motor Co. told me to drive to Thunder Bay and talk to the mechanics / dealers there, it would be a business expense for the Ford Motor Co.

Answer: When you report business income and deductions, there is no such provision to claim a set amount per kilometer. You can only claim what you have actually paid. The other posters have addressed the legitimacy of such a claim, so I will tell you that you actually need to keep a log book for every motor vehicle claim you make. This means you must write down exactly how many kilometers you drove to work in the morning, then to lunch, then to the grocery store, then home, then to the gas station, then to your hairdressers. etc… etc…. and you need to determine how many kilometers are for personal ( which includes driving to your workplace ) and how many are for business. In your case it would be very low…

Let’s say you came up with 10% of your total driving was for business. You would also have to keep ALL of your fuel receipts and add them up, and you would then be able to claim 10% of the total fuel receipts you have provided. This would be your fuel claim. The same percentage would follow through on maintenance and repairs, and insurance etc…

Also, your business has to have the potential to earn income. If you have not earned any income from this business, you cannot claim any expenses.

Now… all of this would only have to be proven if you were chosen for audit. I doubt you would be checked out if you claimed 10% or another small amount, but your deductions have to be reasonable overall.

Items on Amazon Right Now for Rrsp Tax Deduction:

New tax-free savings account versus the old, reliable RRSP: on Feb. 26, 2008, federal finance minister Jim Flaherty’s third version of the budget … management): An article from: CMA Management $9.95 This digital document is an article from CMA Management, published by Society of Management Accountants of Canada on November 1, 2008. The length of the article is 954 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: New tax-free sa…

Five RRSP mistakes you should avoid

Want to make more on your Registered Retirement Savings Plan? Here’s some common mistakes that can cost you money

Understanding the First Time Home Buyer’s Tax Credit – CIR Realty Business Tip

Question: Can I claim mileage, repairs etc, on my taxes if my employer pays me mileage for driving my personal vehicle?

I drive from store to store and my employer pays the federal rate for mileage. Can I claim any deductions for driving my vehicle?

Answer: Generally, no.

If the amount paid by your employer is included in your taxable income (box 1 of your W-2), then you may either claim mileage or claim gas, repairs, etc., but not both.

If the amount paid by your employer is not included in your taxable income (box 1 of your W-2), and the gas, repairs, etc., is more than the amount from your employer, then you can deduct the difference (the gas, repairs, etc., minus the amount from your employer).

If the amount paid by your employer is not included in your taxable income (box 1 of your W-2), and the gas, repairs, etc., is less than or equal to the amount from your employer, then you cannot deduct any of it.

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

TurboTax Home & Business Federal + e-File + State 2010 – [Old Version] $8.07 Designed for sole proprietors, self-employed, consultants, 1099 contractors, and single-owner LLCs. Expanded interview walks you through entering business income and expenses to help you maximize business and personal deductions, home office deductions, depreciation and more. Create W-2 and 1099-MISC forms for your employees and contractors. The Intuit TurboTax Home & Business Tax Year 2010 Softwa…

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Standard mileage rate increases last four months of 2005.(Accounting & Finance): An article from: Bulletin (Northwest Public Power Association) $5.95 This digital document is an article from Bulletin (Northwest Public Power Association), published by Thomson Gale on October 1, 2005. The length of the article is 513 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.Citat…

Bookkeeping Tips for Business Deductions

The deadline for taxes is just around the corner. While businesses are reviewing their 2010 bookkeeping software, they should be sure to take into account their business deductions.

2009 Mileage Rates Increasing For Tax Deducations

Question: Can you really lose money on CD’s through taxes?

I was talking about my investment in CD’s with my mom, and she’s a big fan of real estate. She says you gain more money through Tax Deductions and the selling of your house. To me, there just seems to be less loss with CD’s. I have 11k so far in CD’s, each with just the 1k minimum and held for 1 year each, and the interest rates range from 4.7% to 5% a year at a credit union (not at a regular bank).

Even if I claimed zero on my exemptions, would I still be paying more for taxes at the end of the fiscal year? I understand that there is a “capital gains tax” against the interest made on CD’s, but won’t I still be meeting a surplus as opposed to a deficit in the long run?…even as I continue to invest in more CD’s?

Please help; and I appreciate all feedback. Thank you very much.

Answer: look don’t listen to these folks they are right to a certain point but if you ladder these cd’s where you have one coming do every month it sure gives you a great rainy day fund and every one should have one of them== at least 6 months of money in case you lose your job!!!

Items on Amazon Right Now for Tax Deduction Real Estate Loss:

Every Landlord’s Tax Deduction Guide $18.93 The only book on tax deductions specifically for residential landlords! Named a “Top 10 Real Estate Book” by Robert Bruss, syndicated real estate columnist If you own rental property, you should be taking advantage of the many tax write-offs available. Every Landlord’s Tax Deduction Guide gives residential landlords the plain-English guide they need to save money on taxes — without the ser…

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Vectren Corporation Reports 2010 Results, Issues 2011 Guidance

EVANSVILLE, IN–(Marketwire – February 16, 2011) – Vectren Corporation ( NYSE : VVC ) today reported 2010 net income of $133.7 million, or $1.65 per share. This compares to net income of $133.1 million, or $1.65 per share earned in 2009. Fourth quarter net income was $45.4 million, or $0.56 per share, compared to $54.6 million, or $0.68 per share, in 2009.

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Question: Loaning money to pay for Uni to claim Self-Eduction Deductions?

Currently I am doing HECS. I am thinking of loaning a small amount to partly pay for my university fees. I currently work in a directly related industry so claiming the fees would not be an issue, however is the tax benefit worth while if the interest on the loan is approx equal to the marginal rate of the tax benefit?

Answer: The type of HELP assistance you are receiving will determine your eligibility to claim your uni fees as a deduction

If you are receiving Commonwealth assistance under the HECS-HELP scheme (generally undergraduate courses) then you are not entitled to claim uni fees as a deduction (as you are already paying a reduced course fee being in a Commonwealth supported place)

If you are receiving Commonwealth assistance under the FEE-HELP scheme (generally postgrad courses) then you may be entitled to claim a deduction if there is a direct connection between your work and study. This is because you would be paying the full course fee – the government would just be loaning you the cash.

So if you are entitled to claim a deduction, and you have the ability to pay the loan back quickly and you are in the the 30%+ tax bracket you may find the tax benefit definitely worthwhile vs the loan repayments worthwhile. Also explore the option as some universities offer a discount for upfront payment as well.

Otherwise like miss schlonky said, you are only being charged indexation at 3 – 4% on your HELP loan – much less than the interest rate you would be paying on a personal loan.

Hope this helps

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A taxing future offers happy returns

I’ve heard talk that there are some sick individuals in society who actually take pleasure in filling out their annual tax returns. For such people, July 1 looms like the opening day of the latest Harry Potter movie. It’s the day they get to rip the plastic from the latest Tax Pack, pencil sharpened and calculator at the ready. Opponents of moves to scrap annual tax returns reason that most …