To be used for any question related to tax deductions.

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1answer
66 views

Can I take tax deductions for a second residence where my son lives?

I own a small second residence where my disabled son lives. He is unable to pay any rent and probably never will. For income tax purposes, can I depreciate the house, deduct property taxes and ...
1
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2answers
22 views

can S-corp deduct my medical insurance premium

Can I deduct my health insurance premium, for myself and family, from my S-corp (IRS form 1120S) before transfer of shareholder distribution (K-1) to me personally? And, must I pay myself a payroll, ...
5
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2answers
483 views

U.S. income tax & charitable donations: How much is income tax reduced by donations?

In the U.S., how much is income tax reduced by charitable donations? When filing, are there any special requirements to qualify for the deduction or credit?
0
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0answers
11 views

Will I have to pay tax in India for the money I earned in the us?

What is the rate of income tax in the united states? For example- I am a resident alien. I earn around $50k(33 lakh)per annum. As I am a citizen of India. Which government should I pay my income tax ...
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3answers
175 views

Splitting Hackathon Prize Money to minimize tax debt

I won a hackathon, the prize was $2000 in the form of a check made out to me. I was part of a 6-person team and we split the prize money as follows: $300 to each team member (including me) ...
3
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1answer
52 views

Is there income tax on my on-time sale of my California primary residence?

Bought house in 1998 for $850k, primary residence the whole time, thinking about selling it now for $2.2M Is there Fed or Calif income tax on the profit?
2
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3answers
299 views

Is an old UGMA account loss tax deductable?

In 2008, my father-in-law let us know about a UGMA account that was for my wife. We gladly took control of the assets and noticed the value of the account crashed at some point. At the end of 2008, ...
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0answers
20 views

US Account Taxes

I'm an Australian resident with a US brokerage account. At what point would have to pay taxes in the US after realising gain through my brokerage account?
0
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1answer
78 views

Why would an error in sales tax not affect IRS tax due?

Someone filed out their US 1040 using H&R Block Tax Software. They have under $2K tax due: less than employer withholding, so they have a refund coming. They live in a state with sales tax but no ...
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1answer
180 views

Q2 income and TDS on TRACES form 16 includes only July salary?

My current employer has deducted TDS in July by error. I am below tax bar, so on my TRACES form-16 "amount paid" or "TDS" for Q1,Q3,Q4 TDS details are not mentioned. But it mentions only July's ...
0
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1answer
37 views

Mortgage Interest and Property tax for a multi-family rental property I live in

I own a two-family house (duplex) and live on the first floor. Traditionally I've been reporting half the taxes and mortgage interest as expenses against the rental income, and the other half as my ...
2
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1answer
238 views

Tax Deduction under section 80C for Indian with foreign family Paying International Premium

I am Ronit, indian holding indian passport. My family, my wife and kids are foreign nationals and holding foreign passport. I have purchased insurance from AIA and I am paying insurance premium for ...
3
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1answer
96 views

Overpay state income tax this year to offset federal taxable income to the next year?

This year (2016) I am a waged employee and will earn something close to $100K. Next year (2017) I don't plan to work at all so my projected income for 2017 would be $0. Since the state tax that I ...
8
votes
6answers
8k views

First salary in the UK not being taxed

I just started working in the UK for the first time and received my first payslip. Another colleague of mine got his second payslip here, from the same company. We were surprised that in the detail ...
3
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1answer
76 views

Loan to S-Corp cannot be paid back, how to deduct from personal taxes?

I gave a $15,000 loan to an S-corp where I have a 10% stake. The K1 I got this year only allows me an ordinary loss of $600. However, I know that this business will soon be shut down without the ...
2
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1answer
1k views

Does the FATCA laws also relates 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 ...
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3answers
888 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 ...
2
votes
1answer
33 views

Allowed to make a post-tax HSA contribution if pre-tax contributions are available through employer?

I have a HSA, and my employer allows pre-tax HSA contributions. I'm working on my 2015 taxes and it turns out it would be beneficial to make a contribution now for 2015 (which I believe is possible?) ...
0
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1answer
46 views

Can I claim home-improvement expenses on a rental I live in but do not own?

My father owns a house that he rents to me. I take care of all the maintenance and upkeep like lawn care, and repairs. He doesn't claim any of these on his taxes. Can I claim these expenses on my ...
3
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1answer
45 views

Do I have to explicitly apply for claim of tax rebate u/s 87A in India

In Budget 2016, Indian Finance Minister increased the tax rebate under section 87A from 2000INR to 5000INR. The section 87A says following: The requirement to avail tax rebate u/s 87A ...
0
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1answer
43 views

What could be the best tax saving option before a month of financial year end

I live in India. I am in 250000-500000 tax slab (10%). This year I will be paying approx 11000INR tax. So to get it refunded I have to investment of at least approx 100000 INR. I was wondering what ...
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1answer
27 views

Tax deductible travel and lodging expenses

I'm wondering if travel and lodging expenses are tax deductible in the following situation: I live with my family in city A (in California). I have a full-time job in city B (also in California). The ...
7
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1answer
82 views

If the IRS asks for a proof for a medical expenditure, can we provide a scan, or do we have to provide the original receipts?

In the United States, one can deduct part of the expenses a taxpayer paid for medical and dental care for themselves, their spouse, and their dependents. In case the IRS asks for a proof, are scans of ...
0
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1answer
52 views

How can I deduct fraud-loss (occurred out side of the US) in my tax return?

Couple years ago I had lend some amount of money to my mother via SWIFT, and I have records for this transaction. She does not live in the US (She is not resident of the US either), and her bank ...
14
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1answer
2k views

Can I deduct child's charitable deduction from my taxes?

My five year old daughter negotiated $20 in back allowance (we hadn't paid her allowance in a while, and she's a better negotiator than me) and then donated that money at her school to a charity for ...
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1answer
56 views

Foreign Tax Deduction vs Credit

As I understand it, the Form 1116 Foreign Tax Credit is intended to allow you to avoid double taxation on foreign income. You are allowed a credit up to the amount of US tax that is due to the ...
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1answer
65 views

How much tax do I have to pay in Redmond, Washington form my Microsoft Research Internship income?

I am an Indian student studying in Europe. I will be interning at Microsoft Research for 3 months during this summer. I am not sure yet, but most probably I will be visiting US on a J1 visa. Can you ...
0
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1answer
47 views

How to handle taxes related to affiliate marketing?

I'm running a U.S. registered business, selling intangible services online. Part of my business is offering an affiliate account registration to individuals and companies who wish to earn money ...
8
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2answers
641 views

Is the Personal Exemption included in the Standard Deduction?

My question is: do the numbers below include the personal exemption? I found this tax data for 2016: Table 2. 2016 Standard Deduction and Personal Exemption (Estimate) Filing Status ...
2
votes
1answer
50 views

Lending to SMSF

I have owner occupied/investment property. I have $2M loan on my property, and $2M sitting on my offset account, therefore paying no interest. Can I use my cash in the offset to lend to my SMSF to ...
3
votes
1answer
86 views

How much can I deduct for moving expenses

I moved this year for work. I qualify for a moving expenses deduction but I'm not sure how much of the expense is deductible. I flew to my new location with my parents on a Tuesday. We rented a car ...
0
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0answers
23 views

NYC/NYS Tax form IT-2104

I started a new job in NYC Aug 2015. I completed a W4 and claimed 1 allowance, for "single"; and not sure what I did for state/local but I ended up owing the IRS because local taxes werent taken out ...
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2answers
87 views

US: House bought in Feb '16 and tax returns for '15

My wife and I bought our first house in February, 2016. We used a conventional loan to acquire the property. Now (March, 2016) I am preparing a tax return statement for 2015 year. I haven't made any ...
1
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1answer
59 views

Making a personal loan to my business from the proceeds of cashing out my 401k

I had to cash out my 401k and lent the proceeds to my graphic design business to keep it afloat. It was used replace a computer and to pay off business debt. Total loan is $22,000. We had a ...
3
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1answer
210 views

tax deduction for 30k loan

I recently sold my condo. I sold it for less than I owed but took out a 30k loan to pay off the difference (traditional sale, NOT a short sale). Are there any tax breaks or deductions I can take ...
7
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2answers
760 views

Is there a way to get more money monthly and not a big tax return, but not owe?

I am about to purchase a house and our realtor told us that most people change their w4 so that they get a bigger paycheck and no tax rfund. My question is complicated (or at least to me). What can we ...
4
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1answer
87 views

Tax treatment of renovation costs and mortgage interest on a second house

In mid 2015 I purchased a house with the intention of completely renovating it and renting it out. The renovation is now complete with approximately half of the renovation cost incurred in 2015 and ...
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0answers
28 views

What Qualifies as “Business Deduction for Work-Related Education” Under US Tax Code Publication 970

I work as a Software Developer. Using Topic 513 Publication 970 Chapter 12 of the US Tax Code would I be able to deduct any of the following? Paying for and taking PTO to attend a conference and ...
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2answers
1k views

Confusion about tax bracket?

So until last year, I was least concerned about tax brackets because I was getting money back every year. However, my wife started working this year and sounds like we do owe some money to uncle SAM ...
1
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1answer
57 views

Do I qualify for Traditional IRA tax deduction based on Gross or taxable income?

I am married filing jointly, and we are making above $181k (above IRA tax deduction limit). However, after 401(k) contributions and charities, we are well below $181k. Do we qualify for a fully tax ...
0
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2answers
24 views

Automatically get pre-tax funds in a self directed Traditional IRA

A company I am employed with doesn't offer a IRA. Self directed Traditional IRA isn't a problem, but I would like the pre-tax contributions to come out of my paycheck, instead of waiting till the next ...
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1answer
87 views

Car as business expense, but not because of driving

I was brainstorming a not-documented way of possibly deducting a car and associated costs as a business expense. But not because of normal driving. So I would like some insight into it. I would like ...
5
votes
2answers
110 views

Will a retirement account with more than $3,400 in it bar me from getting EITC?

EITC (earned income tax credit). Is a retirement account considered investment income by the IRS? The IRS considers these as investment income: Interest (both taxable and tax-exempt) Dividends ...
6
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1answer
117 views

Bartering Services

My brother has a friend and her two children living with him. They get to live there based on the fact that she does farm work (provides a service). They have agreed that the services and rent equal ...
9
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5answers
6k views

Do I owe taxes if my deductions are higher than my income?

My total income this year was $16,604 (wages, interest, and business income). My deductions (including IRA, personal exemption, standard deduction, and self employment tax) was $17,404. TurboTax ...
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1answer
40 views

Income tax rebate on Housing Loan Interest for under construction house pending more that 3 years

I have booked a flat in Hyderabad with reputed Builders. I have booked the flat in December 2012. Loan of about 35 Lakhs was sanctioned in August 2013 and about 30 Lakhs was disbursed to Builder in ...
0
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1answer
76 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 ...
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1answer
59 views

Supporting Parents by Paying Monthly Payments Tax Benefits

Each month I pay my parents $300 so they can support themselves. My father still works and so is my mother. They filed a joint return themselves. They DO NOT live with me. Can I get any tax benefits ...
0
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1answer
47 views

Itemized Tax deductions by a Tax consultant H-1B Visa holder

I am not US citizen yet. I am an employee. I recently consulted a tax attorney who provided me with the following questionnaire to calculate my tax deductions. I tried Turbo tax which 1/4th tax ...
0
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3answers
447 views

Personal Allowance in the UK - Are immigrants entitled to it?

Title says it all, can I as an immigrant have access to a personal allowance in the UK? As I understood, it's a set value of income that is not taxable. Is this for everyone or for citizens only? ...