To be used for any question related to tax deductions.

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3answers
1k 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 ...
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1answer
197 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 ...
2
votes
1answer
242 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 ...
0
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1answer
172 views

Personal loans and their tax consequences?

In the year of 2014, I had some personal loans from friends, family members, ranging from $1000 to $10,000 for each loan. As a result, my business net was negative because I used the loans to expense ...
3
votes
2answers
58 views

Medical bill accidentally paid twice in different tax years

Suppose a medical service is provided on December 30, 2015 and the bill is paid on the same day. The provider accidentally re-bills for the service in January 2016, and the bill is paid again. Shortly ...
4
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1answer
52 views

“Memory Care” tax deductible as Medical expense?

IRS regs that I've seen show that "nursing home" expenses are medical expenses that can flow to the medical deduction part of one's schedule A. It's hard to tell what the line is between general '...
3
votes
1answer
105 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 ...
4
votes
1answer
77 views

My tax deductions are different from last year

I am working in a company for my summer internship in California, and today I noticed a weird point that raised a question: Last summer I was working in a big tech company in California. While the ...
3
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1answer
76 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 ...
2
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1answer
81 views

Buying a truck to write off on taxes

I am getting ready to buy a truck for pulling and hauling loads, particularly an f350 super duty. I am also wanting to offer a service to people for hauling loads such as construction supplies. Is ...
3
votes
2answers
198 views

24% tax on first pay in the UK?

Quite a similar thread to others I've seen here - hope I'm not repeating the same questions again! I just got my first payslip after arriving in the UK and noticed that the tax is far higher than ...
0
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1answer
59 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 ...
2
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1answer
32 views

Am I eligible for Home mortgage interest deduction if I live outside the US?

I am a US citizen living outside the US, and I have a mortgage. Am I eligible for Home mortgage interest deduction?
7
votes
1answer
286 views

Can expenses for attending stockholders meetings be deducted in U.S. income taxes?

I have a few different common stocks holdings from which I receive quarterly dividends. In addition I receive an annual notice of a stockholders meeting and of course the voting proxy. I have often ...
40
votes
6answers
7k 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? ...
3
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1answer
68 views

Is there income tax on my one-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?
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2answers
30 views

Re-financing rental property in excess of original basis

Is the interest deductible on a rental property mortgage that is in excess of the original basis plus any improvements, less depreciation?
3
votes
0answers
66 views

Should rideshare drivers log mileage of individual trips, or is a daily entry acceptable?

A rideshare driver (Uber, Lyft) can deduct vehicle expenses for business use of the vehicle. Should the driver log each trip individually, or is a daily entry of beginning odometer, ending odometer, ...
2
votes
2answers
60 views

New 1099 employee with Cobra insurance

I've just started my new job as a 1099 employee having worked as a full time employee for 4 months. For health insurance I'd like to do Cobra since my family has already met their deductibles for the ...
1
vote
1answer
71 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
vote
2answers
24 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
votes
2answers
484 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
votes
0answers
17 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 ...
4
votes
3answers
204 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) ...
2
votes
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?
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1answer
85 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 ...
0
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1answer
41 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 ...
3
votes
1answer
106 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
10k 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 ...
2
votes
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 ...
2
votes
1answer
44 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
votes
1answer
52 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 ...
1
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1answer
30 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
votes
1answer
84 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
58 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
68 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 ...
1
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1answer
81 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
66 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
votes
2answers
651 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 ...
3
votes
1answer
57 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
88 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
43 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 ...
2
votes
2answers
90 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 ...
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vote
1answer
63 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
votes
1answer
212 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
764 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
votes
1answer
107 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
30 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 ...