To be used for any question related to tax deductions.

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2
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1answer
257 views

Will my wife's business losses offset my income on a joint tax return?

I'm filling for my taxes on a joint tax return. My wife is not working currently, but she is starting up a business. And with every business, starting is hard and will probably gonna take some time ...
0
votes
1answer
36 views

Can an International student of F1 VISA accept money in her US bank account on behalf of someone else?

My friend is an international student from India, studying in the US (F1 student VISA). I work from India and U.S. client is about to pay me for some writing services. The U.S client agreed to pay ...
3
votes
2answers
157 views

Are medical deductions and FSAs mutually exclusive?

I understand that medical expenses in excess of 10% of gross income can be deducted with a Schedule A. Can I do this even if I use a medical FSA (excluding the reimbursed part, of course)? For ...
2
votes
1answer
371 views

If my rental property income and mortgage payment are equal, do I need to pay income tax on any rent revenue?

Let's say I have a monthly mortgage payment of $1600 on a condo I own, and the condo is rented out for $1600. Then, I'm breaking even. Hence, I would not need to pay any tax on my rental income. Would ...
0
votes
1answer
533 views

How are Canada Universal Child Care Benefit (UCCB) & related tax measures changing in 2015?

Significant changes to Canada's Universal Child Care Benefit (UCCB) and related income tax measures were announced on October 30, 2014 by the Prime Minister. What exactly is changing w.r.t. UCCB and ...
2
votes
1answer
68 views

End-of-year purchase deductions

I'm a sole proprietor / contract employee (developer) in Texas (United States) and am planning to make a new hardware purchase. I remember being told that purchases made in the last quarter of the ...
0
votes
1answer
29 views

(US) What is the deduction for gifts of appreciated stock with restricted registration rights?

I have appreciated stock that I am allowed to give away to charitable transferees, but those transferees will have restricted registration rights for 12 months. They cannot sell the stock for 12 ...
2
votes
1answer
62 views

How can I calculate deductible percentage of business trip?

Here's my complicated situation. My wife is an author, and when her first book came out in January 2013, she, I and our two kids went on a 7 month book tour. This was an extreme but totally legitimate ...
1
vote
1answer
58 views

What does it mean to be “offset against taxable gains”?

In a shareholder's derivative litigation I have the following statement of the financial situation which this case arises from: "Plaintiffs contend that if the company were to sell the purchased ...
3
votes
2answers
78 views

What are some pre-tax programs similar to FSA that I can take advantage of?

I recently found out about Flexible Spending Accounts and was surprised to learn they could be used for Lasik, essentially saving me a good portion of the cost by making that income not be taxed. Are ...
6
votes
1answer
143 views

Can I deduct work equipment I am not required to purchase by my employer?

I am a software engineer and I find myself more productive and less fatigued with certain equipment: a mechanical keyboard, an IPS monitor and noise-cancelling headphones. My employer does not ...
5
votes
1answer
280 views

Can I deduct IRA contributions and take the standard deduction?

If I have the standard deduction on my taxes (that is, I don't itemize), can I deduct IRA contributions? If so, would that be for Traditional or Roth IRAs?
1
vote
1answer
90 views

Can I deduct the cost of painting and replacing flooring after a renter moves out and we move in?

We have been renting our retirement home out for several years. The renters have moved out and we are moving in. Can we deduct the cost of repainting and putting in new flooring?
1
vote
1answer
180 views

Tax implication for Indian citizens working in US on L1 visa

I am a citizen of India, currently working as a software engineer in India. Thus I am paying income-tax to Indian-Govt. I am moving to US in November-2014 on L1-Visa. I had following questions in ...
2
votes
1answer
43 views

Can Health-Releated Services be a Business Expense?

I own a small S-Corp. I am considering subscribing to a monthly meditation service ($5/month) to help me with my focus, creativity, etc. 1 - Can I charge this on my business account? 2 - Is this tax ...
1
vote
1answer
70 views

Profits vs. losses from stocks, options, and futures: separate, or combined?

Are stocks, options, and futures all considered part of the same basket for tax purposes? E.g., if one make some profits on stocks and losses on futures, does the IRS allow one to deduct the losses ...
2
votes
1answer
178 views

Deducting side work sole proprietorship expenses from regular employment earnings?

I have a day-job which gets me a salary. I'm about to start some websites on the side with the intention of making money off advertising. For the time being, I plan to remain an unregistered sole ...
2
votes
4answers
264 views

Why isn't money spent on necessities deductible from your taxes?

I'm semi-recently graduated from college. In my job(s) I've had a flex account that lets me pay for medical expenses tax free. Similarly for my commute I'm able to pay for my ticket with pre-tax ...
1
vote
2answers
48 views

How would IRS treat reimbursement in a later year of moving expenses?

In the U.S., if one claims a moving expense using Form 3903 in one year because one is unsure whether a startup business will be able to even reimburse you for those expenses, but in a subsequent ...
1
vote
1answer
47 views

Passing on non refundable tax credits

I'm planning on doing some volunteer work and during this work, I'm going to amass a decent amount of non-refundable tax credits via charitable donations. I can't claim those this year, though, ...
3
votes
1answer
84 views

How do donation tax receipts work when I have no taxable income?

I currently refurbish computers as a side volunteering thing, and all refurbished computers go to charity. I will receive tax receipts for these donations. The thing is though, I am still <18 and ...
1
vote
0answers
62 views

Claim tax relief on purchase in UK as full time employee

As a full time employee in an I.T. company can I claim tax relief on purchases related to my job? My employer does not provide a laptop so I was considering buying one myself and was wondering if ...
4
votes
1answer
213 views

Downsides to Salary Sacrifice? (UK)

My company are starting a scheme where I reduce my gross salary by the amount I pay into our pensions. They increase their pension contribution by the same amount, saving us both National Insurance ...
0
votes
1answer
134 views

Financial implications of purchasing a first home?

My girlfriend and I bought our first home and I'm wondering what finance topics this touches on? Some relevant info might be: We're in Vermont We aren't married We bought the house in late June ...
4
votes
2answers
157 views

How can I calculate my income for purposes of an IRA deduction when I have HSA/401k deductions?

This chart here has the income restrictions for IRA deduction income limits. It does not use your AGI but a modified AGI. I have been unable to find any resources detailing how this income ...
1
vote
2answers
91 views

Side work and managing finances?

I recently started taking on some side work which is making a decent amount of money for me on the side. I am operating it under my own SS# currently and not an LLC. I was hoping someone could provide ...
2
votes
2answers
916 views

Employer is making a student loan payment on my behalf. Does this need to be claimed as personal income?

As an incentive to employment my company is making a large lump sum payment towards my student loan debt, lets for this example say $5,000 (the real amount is different). They have inquired about my ...
16
votes
12answers
4k views

Why is paying mortgage interest considered by some to be beneficial?

When discussing buying a home I often hear people say they like having a mortgage because they get the benefit of writing off the interest. Am I misunderstanding something? My simple thought is if ...
5
votes
1answer
186 views

What does this 401K statement mean?

"Your employer will match up to 10% of your compensation that you elect as pre-tax contribution. When you contribute to your plan, your employer matches 50% of the first 10% of your pay." I don't get ...
1
vote
0answers
27 views

Does dividend payments to a holding company invoke tax in Australia

I've been doing some reading about holding company tax law, and from what I've read, most of the time when dividends are paid from a operations company to a holding company there is no tax. But I can ...
5
votes
1answer
61 views

Married filing separately - Can I take standard deduction if spouse has zero itemized deductions

I read on IRS website "Your standard deduction is zero and you should itemize any deductions you have if: Your filing status is married filing separately, and your spouse itemizes deductions on his or ...
5
votes
1answer
410 views

Can I use an HSA to pay financed payments for LASIK?

I understand that an HSA can be used for qualified medical expenses, and that LASIK falls under this category. I'm considering getting LASIK done and would like to use my HSA to pay for it. However, ...
5
votes
1answer
160 views

Tax deduction for rental repairs after tenant moves out?

I purchased a home last July and began living there, while renting out a second bedroom in the property to a friend. I am now getting married in August, so the friend has moved out to his own place. ...
6
votes
1answer
80 views

Can I deduct my individual Health Insurance Premium in Tax

I have a my own LLC and working as self employee for this company. I am working on 1099 for this company. Since there is only 2 employee (including my spouse), I can't take health insurance from my ...
1
vote
1answer
63 views

Why does the IRS only allow for the itemized deduction of one type of state tax?

I was thinking about this after reading this excellent answer to another question. Excluding the obvious cynical answer (to bring in more tax dollars), what is the logic behind the IRS allowing a ...
36
votes
5answers
6k views

Why are businesses allowed to deduct expenses from their income, while individuals generally cannot?

In general, it's an accepted principle that businesses should be allowed to deduct expenses. How did this principle come about? And why doesn't it appear to apply to individuals to the same extent? ...
15
votes
1answer
2k views

Will I owe any taxes if I can write off every cent?

Does anyone know if I will owe any taxes for my small business if I can write off every cent? My business is based in the United States. I started a small web design business this year and anticipate ...
1
vote
1answer
68 views

Tax rebate on home loan

I am govt. employee & got a home loan from SBI to construct new building on my mother's property and map also passed in name of my mother . I am borrower and she is co-borrower on the the loan. ...
13
votes
2answers
1k views

If I donate depreciated stock to charity, can I deduct both the market value and the capital loss?

I have stock that's depreciated in value since I bought it. Just to make up some numbers, I paid $8000 for it, and it's worth $1000 now. If I donate the stock to charity, can I take the charitable ...
0
votes
1answer
30 views

Does hitting one type of deduction cap exhaust deductions for other types of donations?

For appreciated securities the IRS allows certain caps on how much of AGI can be deducted. Here is a chart: http://www.nptrust.org/donor-advised-funds/daf-vs-foundation/ The short version is 20% (of ...
3
votes
1answer
477 views

Claiming business expenses for a business with no income

I'm currently working on a web application on the side to turn into a business one day. I probably spend upwards of 20-30 hours a week working on it (I would like to spend more but not ready to quit ...
0
votes
4answers
64 views

Tax on Stocks or ETF's

This is a really stupid question, but just to confirm: tax (credit) is accessed only on the realized capital gain (loss) from selling of stocks or ETF's, correct? To answer the question from the ...
3
votes
2answers
74 views

Opening and funding an IRA in three days - is this feasible?

I'm doing my taxes. (I'm doing them really late this year because I became an independent contractor and I've been paralyzed by fear - I've procrastinated quite a bit.) Turbotax is telling me that I ...
5
votes
1answer
239 views

Do I need an official receipt to claim a charitable tax credit?

I made a charitable donation in December of last year, and have yet to receive the official tax receipt for tax-return purposes. Contacting the charity, I was told that the receipts had already been ...
6
votes
3answers
377 views

Is there a tax deduction for renting office space in service of employer?

Can I get any kind of tax deduction for paying rent on office space that is entirely in the service of my employer? Let me explain: I work remotely. My company is in California, but I presently live ...
-2
votes
1answer
191 views

Roth conversion: US tax brackets for Non-resident Aliens (residing in India)

Question 1: If I move money from a traditional to roth IRA (or pretax 401k to roth) account, what are the US tax brackets? Are there any standard deductions? Will I have to pay any taxes in India for ...
0
votes
1answer
34 views

How do self employment equipment/software deductions work?

General tax-related question, here. Let's say I do freelance work and need to buy special software or equipment to do that work. When I claim that work as income and pay taxes on it, I know that I ...
2
votes
1answer
314 views

Do the FATCA laws also relate to individuals incomes?

I'm wondering about the American FATCA laws which apply various tax rules on American citizens' foreign accounts around the world. Except for tax withholdings from investment income, does this law ...
0
votes
1answer
74 views

Can I claim a tax deduction for college tuition paid but was then reimbursed by my company?

I paid the college tuition for my kid with my credit card and I have received the corresponding form for the tax deduction from the college. However, my employer has the benefit to cover the fee. In ...
7
votes
1answer
223 views

What are the consequences of being claimed as a dependent in the US?

What are the consequences of being claimed as a dependent (for the dependent that is) in the US?