Questions tagged [tax-deduction]

A tax deduction is a deduction that lowers a person’s tax liability by lowering his taxable income. Deductions are typically expenses that the taxpayer incurs during the year that can be applied against or subtracted from his gross income in order to figure out how much tax is owed.

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Can I claim a tax deduction for my occupational physical therapy if I'm an independent contractor?

I'm an independent contractor doing web development consulting. Due to the nature of my work, I am constantly sitting still - many times with bad posture. This has caused me to have back soreness and ...
2 votes
2 answers
91 views

Optimizing property insurance payments for tax purposes

I own a residential rental property in the United States. I recently received the bill to pay the property insurance on it. The bill can be paid in full this month, or I can pay it in monthly ...
0 votes
1 answer
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Does a gain in one brokerage account and a loss in another brokerage balance each other out for tax purposes?

I have different investments in two different brokerage accounts A and B. Investments in A are up 500 and in B are down 500. If I were to sell both of these in the same year (without any other losses ...
2 votes
1 answer
47 views

Reduce LLC profits by putting towards spouse's IRA?

I have a full time job. I also own a LLC (sole proprietor). I have some profits from my LLC this year. My spouse and I file jointly. My spouse is not currently employed. Can I move the profits from ...
1 vote
0 answers
40 views

Can I Expense Reimbursements To An Employee Who Received Medical Treatment In A Foreign Country?

I have an employee who was sent to a foreign country on a business trip. He got in an accident while he was there and had to be treated at a hospital. Since he was there on a company trip, we ...
7 votes
1 answer
141 views

Medical expenses tax deductions - billed vs. paid

In the USA, total medical expenses above a threshold may be deducted from taxes. If a medical expense occurs in December and the bill is paid in January, for tax purposes, does this expense occur in ...
86 votes
5 answers
20k views

I have sole custody of my child but the child's father's brother claimed him as a tax deduction

I have court papers showing that I have full and sole custody of my son and that he was with me like 99% of the year. I let my son's father have him a few weekends last year but only a handful. My ...
-2 votes
2 answers
7k views

Can I purchase gift cards this year and deduct as a business expense, and spend the cards next year?

If my friend was to buy 5k in Amazon gift cards for himself before the year end knowing that he was going to spend those during the 2019 fiscal year, with the idea that he would be writing this off as ...
0 votes
1 answer
99 views

On what amount am I supposed to pay VAT for sales?

My question comes after reading this article about Amazon paying just £15 million in tax for European revenues of over £9 billion. Here, I am confused about when businesses pay VAT (VALUE ADDED TAX). ...
-1 votes
1 answer
192 views

Taxes - Extra money at the end of the year

Background I run a small business and we have a fortune 500 company as one of our clients. This is great and all except that they push us around as far as finances are concerned. They always pay, but ...
0 votes
1 answer
54 views

Identifying the field for Lohnermäßigung/Steuerfreibetrag in the official German tax deduction spec

In Germany, you can get kind of discount on your tax if you are paying for a Kindergarten. This is called in general Lohnsteuerermäßigung and gives you a Steuerfreibeitrag (there are obviously also ...
2 votes
1 answer
119 views

Which is the correct source for the correct German Lohnsteuer deduction?

Coming from here, I have now the following data and must say I'm quite puzzled. Which value is correct now? #1 Given the reference data from a German software company specializing on tax software. ...
7 votes
1 answer
481 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 ...
4 votes
2 answers
209 views

Set off computer against tax liability

I'm an employed programmer, officially not working from home. A friend told me, that you can set off your personal computer and up to specific values, you would not have to prove your work related ...
2 votes
1 answer
250 views

Calculated 30% return from opening 0% promo credit cards for charitable contributions, is this right?

TL;DR Just how good is doubling up itemized contributions in 2018, using that to meet minimum spend for credit card bonuses, and taking the standard deduction in 2019? With the US tax code changes in ...
10 votes
1 answer
649 views

How to take advantage of a no-income year (taxwise) when you could sell stock with capital gains?

I didn´t have much income this year, so I was thinking of selling any stock with capital gains. The purpose of this sell is to take advantage of the standard deduction and the 0% tax on capital gains ...
5 votes
1 answer
312 views

Tax deduction macros in Python for Germany

I work to implement a set of German tax deduction macros in Python for private use and have some errors, one of my troubles is correct deduction of Lohnsteuer. There are quite many online calculators ...
5 votes
1 answer
37k views

How gifting money to Parents helps in Tax saving in India?

My Salary in a FY is Rs.6,50,000. If I gift 50k to my Father who is retired but getting pension, will I get a 50k tax benefit? If Yes, then under which section would it be? 80C or other? Secondly, if ...
1 vote
1 answer
93 views

Can I claim management fee as business expense?

Location is New Zealand. I have an agency that looks after a rental property for me, and they charge me management fee every two weeks. The tenants pay the agency rent, the agency deducts their ...
0 votes
2 answers
379 views

W-2 contractor loopholes

I am working as a W-2 contractor, not as a 1099 contractor (i.e., pay quarterly). Are there any loopholes or write-offs that I should be saving receipts for? Driving from location to location, gas, ...
0 votes
1 answer
605 views

Self-employed, Medicare, Retiree: Box 5 on 1099-R is empty; is health insurance deductible (1040, Line 29)?

If Box 5 on a 1099-R is empty, does that mean that health insurance premiums for a self-employed retiree can be deducted on line 29 of the 1040? (Assumption: All other requirements for 1040 line 29 ...
0 votes
3 answers
2k views

Explain me the benefit of insurance policy

I have taken a life insurance policy from ICICI called "ICICI Pru Saving Suraksha LP". The details of my policy is given below. Term: 15 years Premium Amount: Rs 50,000.00 Sum Assured: Rs 500,000.00 ...
0 votes
2 answers
550 views

How are deductions divided between ordinary income and long term capital gains?

The question applies to the US federal income tax for tax year 2018. To make things concrete, let's suppose I have $50k in ordinary income and $50k in long term capital gains. I plan to use the ...
0 votes
1 answer
304 views

For tax purposes, does it make more sense for me to lease or buy equipment for my solo business?

I own a UX consulting business, which is a single-member LLC, and work for clients remotely. When I first bought my work computer several years ago, I bought it from its manufacturer's site and ...
1 vote
0 answers
50 views

Can I claim standard business expenses incurred earlier than the date my LLC was formed?

I want to form an LLC for my web development business. However, I incurred a bunch of expenses during the year that I'd like to be able to deduct. I know you can claim startup costs, but these are ...
1 vote
0 answers
42 views

I own a corporation taxed as an S corp which hires me to do web development/consulting. Does the company income qualify as QBI under the TCJA?

In defining a "qualified trade or business", the Tax Cuts and Jobs Act (TCJA) excludes a "specified service trade or business" and lists "consulting" in its list of disqualified business types. But ...
3 votes
1 answer
112 views

Do I not qualify for any education tax breaks?

I'm planning on going back to school for a graduate degree. Looking at the different tax breaks I could find related to education: The American Opportunity tax credit: This is not an undergraduate ...
6 votes
1 answer
3k views

Can I make a lump-sum contribution to a SIMPLE IRA?

My employer offers a SIMPLE IRA plan to which I can contribute 3% of my salary. My employer contributes a 3% match. The employee contribution limit of $12,500 is far higher than the 3% amount I will ...
1 vote
1 answer
2k views

If a church does not ask for 501(c)3 exemption, are charitable contributions to it tax exempt?

In the United States, most churches file for 501(c)3 tax exemption. Some churches choose not to, sometimes as a matter of belief that they should not be "licensed" in any way by a government. It is ...
0 votes
1 answer
80 views

How can all medical expenses be deducted from taxable income for a business with owner and 1 other employee?

How would I best set things up so as to fully fund my and my employees healthcare and reduce taxable income. I am am considering forming an LLC or S-Corp but don't know the pros and cons in this ...
1 vote
1 answer
153 views

Roth 401(k) Contribution Limits

Please consider an individual, in the US, who has net earnings from self employment of $8000 who wishes to contribute to a Roth 401(k) plan. For tax purposes these earnings can be reduced by 20% due ...
1 vote
0 answers
55 views

Tax deduction for work-space-in-the-home expenses

For reference, I am in Ontario, Canada, I am an hourly non-exempt employee (T4 is issued every year, entitled to overtime pay if working more than 8h a day, 1.5X pay + statutory holiday pay [such as ...
0 votes
1 answer
257 views

USA, tax, business travel overseas, lodging / M&IE allowance system?

Say you are in the US. You are self-employed. During the year you have to travel to country X (say, Japan) for 20 days to see one of your clients. It is pure 100% business travel. For travel within ...
8 votes
3 answers
7k views

INR 10 million borrowed from friend at 7% interest per annum

If my friend transfers INR 10,000,000 into my bank account and we make a legal document for the same to return the amount at 7% per annum for next 12 yrs, should I pay tax on the same? If my salary ...
6 votes
1 answer
785 views

Can I deduct a contribution to an IRA if I also contribute to a 401(k) in the same tax year?

Can I deduct a contribution to a traditional IRA if I am also contributing to a 401(k) in the same tax year?
1 vote
1 answer
128 views

What foreign Government Taxes of Home buying process can I use in Itemized Tax Deduction?

I bought a house in India in 2016. In that process I had to pay few different taxes to government. I took a loan as well. Which of these can I show in Itemized deductions? Government Taxes Stamp ...
3 votes
1 answer
92 views

Tax deduction for donating to international charity

If one sponsors a child from an impoverished country through a charity like Save the Children international, can this contribution still be considered tax deductible in Australia?
1 vote
1 answer
167 views

Was the brouhaha on pre-paying real estate tax in 2017 for 2018 taxes ever resolved, and if so, how?

The new tax bill (Federal, United States) allows only a $10,000 deduction for 2018 for state income tax plus real estate tax. There was considerable backing and forthing on this as the tax bill ...
3 votes
2 answers
277 views

Qualifying as a Professional Musician to Deduct Cost of Instruments

I've been a hobbyist musician my whole life, playing random paying gigs from time to time. The group I am with now all have day-jobs as non-musicians, but we plan to start playing shows and recording ...
2 votes
1 answer
62 views

How tax is deducted on my fixed deposits?

I was filing income tax online. I came across tax deducted on my fixed deposit: Tax on 2nd FD seems to be correctly deducted at 10%: 78/777 = 10% But it seems that tax on 1st FD is deducted at 14%: ...
1 vote
1 answer
139 views

Can you lease a secondary residential apartment for a job in NYC, and declare it as expense in tax return?

Currently I commute over 2 hours to work in NYC. Thus I would like to rent a apartment close to where I work. Is there a way to have your rental payment declared as expense in your tax return? One ...
1 vote
1 answer
92 views

Writing off purchases to improve rental property when partner made the purchases

I bought my split-level house from my mother and moved in. I rented the upstairs to a couple of tenants. They use the upstairs while my girlfriend and I use the downstairs (except for two shared ...
5 votes
3 answers
420 views

When would it be better to pay my public transport ticket at once vs. in 12 monthly installments?

I live in Germany and I use public transport to go to work. I have a yearly public transport ticket which costs 1000€. The transport association offers me the choice of paying 1000€ in one transfer ...
1 vote
2 answers
120 views

Standard Tax increase starting 2018 and itemized deductions

I am trying to purchase a house in the next few months. The 2018 Standard Deduction for married couples filing jointly will be $24k. I think that to reach this limit with itemized deductions, I would ...
6 votes
1 answer
307 views

Band tax strategy - not paying members

I operate a band that makes under $4k a year. A few shows a year we get paid larger sums of money ($600+ per gig), and the venue uses my SSN and sends me a 1099 around tax season. So the "band" money ...
0 votes
1 answer
440 views

GST & TDS for international money - advertisement platform

Am from India and I've created an online platform(a webbased application) where ADVERTISERS can list ads(or campaigns) and PUBLISHERS can use this ads and promote them. So when ADVERTISERS pays me, ...
4 votes
1 answer
2k views

Can I claim a UK or foreign charity donation as tax deductible in Canada?

Can I claim a UK charity donation as tax deductible in Canada? More generally, are charitable donations to foreign charities tax deductible in Canada?
6 votes
1 answer
62k views

Tax implications in India for sending money to India from US

I am planning to transfer around $8K-10K in my parent's bank account(Joint bank a/c) in India . I have read a lot of posts(like Will I have to pay taxes in India when I transfer money from a US bank ...
5 votes
1 answer
285 views

I don't understand the Qualified Business Income Deduction?

In the USA, the new tax laws include a: Qualified Business Income Deduction I cannot find one place that explains this and whether it is good or bad. Example situation: Married person, with an ...
1 vote
1 answer
120 views

USA 2018 tax write-off - Meals for Employees

We do a lot of work with 1099 contracted "employees". Does the food write-off count for w9 contractors or just w2 employees?

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