The IRS Deductions Blog

Posts Tagged ‘tax deductions’

Question: has anyone started a small business to avoid taxes on other income?

just wondering if anyone has started a small business just to get the deductions. i was hit hard by the tax man last year and i would consider myself lower-middle class! i was thinking of starting AVON or something so that i could have some deductions for next year. thanks

Answer: Not a good idea for a couple of reasons.

First, if you start a business without the intention of making a profit then it is a hobby, not a business. Hobby losses are only deductible up to the amount of income… hence, no income = no Deductible Expenses.

The second reason it is not a good idea is that deductions do not save you taxes dollar for dollar. In other words, if you are in the 15% tax bracket then for every deductible dollar you spend you only save 15 cents in taxes. Doing the math… you end up 85 cents in the hole. It would have been better to pay the 15 cents in taxes and use the 85 cents to do something you enjoy.

Look into other options. Open an IRA or contribute to your employer-sponsored retirement plan. Talk to a tax advisor or financial consultant. There are several better ways to invest in the future while saving on income taxes today.

Best of luck.

Items on Amazon Right Now for Avon Tax Deductions:

Can I Deduct The Cost of Avon Products?

Question: what are the income Tax Deductions in insurance agent’s (both Life & General) commission? Is any writing off?

tax on insurance commission

Answer: Life Insurance Agent
first year commission 50%
2nd year commission 33%
Subject to a maximum of Rs. 20,000.00 in a year.

There are no such adhoc deductions available in GIC.

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TurboTax Home & Business Federal + State + Federal efile 2009 $42.89 TURBOTAX HOME & BUSINESS WITH…

Every Landlord’s Tax Deduction Guide $21.99 The only book on tax deductions specifically for residential landlords!Named a “Top 10 Real Estate Book” by Robert Bruss, syndicated real estate columnistIf 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 services of …

5 Ways To Receive Your Tax Refund

Taxpayers in the United States are confronted with a number of different methods to receive their i

010 2009Nov04b

Question: what is maximum limit of IT for senior citizen/retired defence officers?

I Tax Deductions AT SOURCE

Answer: income up to 2,40000 rupees is exempted from income tax under indian rules according to my knowledge

Items on Amazon Right Now for Seniors Tax Deductions:

To amend the Internal Revenue Code of 1986 to allow a deduction for State real property taxes paid by taxpayers aged 65 or older who do not itemize … of senior citizen real property tax accounts. $9.84 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications. In broadening the public understanding of government and its work, an enlightened democracy can grow and prosper. Ranging from historic Congressional Bills to the most recent Budget of the United States Government, the BiblioGov Project spans a wealth of gover…

Public hearing before Assembly Taxation Committee on Assembly concurrent resolution no. 77 (proposes an amendment to the constitution providing an increase, based upon the cost of living, for property tax deductions of disabled and senior citizens) held June 8, 1978, Assembly Chamber, State House, Trenton, New Jersey. …

Public hearing before Assembly Taxation Committee on Assembly concurrent resolutions no. 20, 29, 49, 54, 55, 87, 100, 114, 150, 174, 179, 3009, 3016, 3017, 3019, senior citizen tax deduction, held May 8, 1975, Assembly Chamber State House, Trenton, New Jersey. …

IRS provides tips, points out pitfalls

For 26 years, Frieda Fulmer has volunteered to help senior citizens fill out their income tax returns. During that time, she said she has often been asked the same question: At what age do people no longer have to pay income taxes?

Benefits of Filing a Tax Return : Tax Preparation Services Canada

Question: Mom and I sold our condo, how do we each report the taxes?

My mom and I owned a condo for 1 yr and 9 months in WA state. We sold it and we’re trying to figure out how to split the resulting profit (approx $40K total). We each received wire transfers from the escrow company for $20K. Now it’s tax time and we’re trying to figure out what deductions are available, and how to report any applicable taxes and what the proper forms for this might be? In particular, we are wondering if we can include the closing costs we incurred as an adjustment to our cost basis and ultimately reduce the portion of the $20k that is taxable. Also, as I changed jobs 6 months after we bought it (bought in June 2004, sold in Feb 2006). Wondering if I can take a partial exclusion on capital gains due to having job location changes in Nov. 2004, and again in July 2006). Neither job change was out of state but did effect length of my commute. Thanks so much!

Answer: The first answer is incorrect in the final paragraph. You can, indeed, claim a partial exclusion provided you meet certain conditions. See the link below, in particular page 15. The issue I see is that you changed jobs in Nov 2004 but did not sell it until Feb 2006. That might be viewed as an excessive length of time to hold the property after changing jobs.

Items on Amazon Right Now for Condo Tax Deductions:

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Ten tax tips to save you money

Millions of Canadians pay more tax than they should. Moneyville’s weeklong continues with the sorts of tips that will help you avoid the same fate.

Homebuyer tax credit information

Items on Amazon Right Now for Landlord Tax Deductions Canada:

Every Landlord’s Tax Deduction Guide (2nd Edition) $34.99 This bestseller is the only book on tax deductions specifically for residential landlords! 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 services of a high-priced accounting firm. This book explains how to ma…

Quicken Rental Property Manager 2012 $129.99 Quicken Rental Property Manager Personal Finance Software: Organizes your personal and rental property finances, all in one place Shows how your rental properties are doing and where you’re spending at a glance Identifies tax-deductible rental property expenses so you can maximize your tax deductions Shows which rents have been paid so you know who owes you money Stores lease terms, rental rat…

Enova Systems, Inc. – Enova FY 2010 Annual Financial Report

Enova Systems, Inc. – Enova FY 2010 Annual Financial Report