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1

Until the changes in the Budget 2015, landlords paid tax on their profit, now landlords pay tax on their “turnover”. So a landlord can be required to pay tax on rental income even when the mortgage interest costs are more than the rent! The government claims it will only affect higher rate (40%) tax payers; this is not true, as a lower rate tax payer can ...


1

Assuming no other taxable income or tax deductions, then from April 2017 the landlord will be paying higher-rate tax (40%) on income over £43,600 and will only be able to claim basic-rate (20%) tax relief on mortgage interest, phased in over four years. If mortgage interest is the only cost and it's exactly the same as the rental income, then the landlord ...


4

It's the same result either way. Say the bills are $600, and you are reimbursed $400. You'd be able to write off $400 as part of the utilities that are common expenses, but then claim the $400 as income. I'd stick with that, and have contemporaneous records supporting all cash flow. You also can take 2/3 of any other maintenance costs that most ...


1

The ATO has information on this. However, the tax rates that apply to you will be based on whether you are an Australian resident for tax purposes. The ATO has a tool for assisting with this, but you may need to speak to an income tax accountant if the tool is unable to give you an answer. But, basically: If you are not an Australian resident for tax ...


7

The pay date determines the tax year. That is the date they give you the check, or the date it is direct deposited. Knowing how many pay checks you will get this year will be important when determining how much from each paycheck to have withheld for a 401k, an FSA, or an HSA. as was pointed out by dave_thompson_085 in the comments: Publication 17 ...


4

H.R. basically consults Publication 15 (this is the link to 2015) to determine how much to hold, based on filing status, exemptions, and pay amount. What's described here is a form of estimation, or, in other words, H.R. withholds what would be your actual taxes, dividing across the number of paychecks you receive. Assuming your gross pay and exemptions do ...


4

If your payroll payments are the same each period, you will generally have the same net pay per period. Some things that can cause variations: Your change in pretax deductions such as 401k contribution, HSA contribution If you are highly paid, once you earn $118,500, you will no longer have FICA withholding, and your paycheck can increase Certain state ...


-1

No, you will (generally speaking) not see a decrease in your net earnings from crossing a tax bracket: The US utilizes a progressive tax system employing marginal tax rates divided into brackets. This means that your highest marginal rate (the top bracket you fall into) only applies to the portion of your income that is in that bracket, not your total ...


3

It seems that you are misunderstanding how your taxes are calculated. You seem to be under the impression that once you pass $37,450 annual income, ALL of your income will be taxed at 25%. However, in reality, only the income you earn above that amount will be taxed at 25%. You can use this chart to determine exactly how much federal tax you will pay; As ...


2

In general no, if you just have one employer and work there with the same salary for the whole year. Typically an employer does tax withholding by extrapolating your monthly income to the entire year and withholding the right amount so that at the end, what is withheld is what you owe. It's not a surprise to them when your income crosses a tax bracket ...


26

Most countries with income tax, including the USA, design their withholding system so that in straightforward cases, tax is withheld from each month's paycheck on an annualized basis: tax for a month is calculated on the assumption that you will keep earning the same monthly amount for the rest of the year, and the withholding is set so that the tax is ...


0

It would NOT be considered rent. She is an owner and so her money would count as a payment on the mortgage. The rent/income question would not come up to the IRS because if and when you were ever audited she can show that she made payments toward the mortgage to you and you paid the mortgage with that money. The only time the IRS would come into play is ...


0

Not only is it right that they should withhold tax based on your annualized salary, but in general for "non-resident aliens" the withholding is a higher rate, so even your 10% number seems low unless you benefit from a special tax treaty. http://www.irs.gov/Individuals/International-Taxpayers/Withholding-of-Tax


0

Through your question and then clarification through the comments, it looks like you have a U.S. LLC with at least two members. If you did not elect some other tax treatment, your LLC will be treated as a partnership by the IRS. The partnership should file a tax return on Form 1065. Then each partner will get a Schedule K-1 from the partnership, which the ...


0

I suggest you to work with a US-licensed CPA or tax attorney who are familiar with the FBAR/FATCA compliance issues. FBAR: We have joint accounts, no problem. The securities/custodian account, however, is in my name, but my wife is a signatory (German bank preferred this arrangement) and has a financial interest in it. In which part of the FinCEN ...


3

They however claim that the taxes will be paid on my behalf considering the income for one year. Yes that's right. They are required to consider the full years income and deduct tax in 12 equal portions, right from first salary. You can claim refund while filing returns.


0

For the financial year 1 April 2014 to 31 March 2015, you are deemed "Resident" for tax purposes. Hence you have pay tax on your Global Income. Do I have to pay any tax in India for this duration. Yes. You need to consider the local salary, the amount deposited into India as well. If I have to pay any tax in India ,can I claim my expenditure for my ...


2

I know this question is old. I also have a kotak trading account. There is no way to get the dividend report from the trading account. The dividend is directly credited to your bank account by the companies through registrar. There is no involvement of trading account in there. So the best possible way will be to get the bank account statement for the ...


2

I guess you are making quite a bit of assumptions without clarifying what you are trying to achieve. As a non-resident you cannot incorporate a sole proprietorship in Singapore. You have to be citizen. Alternatively you can register a company that has its own norms like minimum number of directors and some being Singapore national, etc. As you are paying ...


2

In the United States the general policy is that the IRS would consider it income when you have access to the money. I work for a company that has a contract with another company. Near the end of the year I turn in a time card that has my hours that I worked as of that date. Because they don't pay me until early January the money on the check is counted in ...


3

@littleadv is right, this depends on your country. Furthermore, this is likely to depend on the type of business you own (in the US: LLC, S-corp, C-corp). In some countries you have to provide yourself a minimum wage if you are classified as a major shareholder and work for the company. When there is a minimum level of wage you have to pay yourself the tax ...


2

Tax cost basis is the amounts you've spent on developing the product which you hasn't deducted yet from previous income. From what you've described, it sounds like your cost basis is $0. Time you spent is not your cost, since time is not money. The fact that you might have earned something if working at that time but you didn't - is irrelevant, because ...


3

Short answer NO! Long answer,don't try to. Your tax is deducted at source depending upon the number you fill on your W-4. If the number on your W-4 adds up to 3 or higher, your federal tax rate may be relatively less, however you will still need to account for it at the end of the year. On H1b you will be charged medicare and Social Security in addition to ...


1

Based on your comment that you do not itemize your deductions, I think that's probably the next step for you to consider. Many of the suggestions that we would give require that you itemize. If you are not familiar with the potential deductions it would probably be worth your while to visit with a local tax professional and discuss your expenses including ...


5

Some employers offer commuter benefits that allow you to pay some commuter costs (trains, parking, bikes, vansharing, etc) with pre-tax money (up to $120ish a month). Employers commonly use companies such as WageWorks to provide this benefit. This would lower your taxable income by over $1000 per year.


36

It is important to remember that the tax brackets in the U.S. are marginal. This means that the first part of your income is taxed at 10%, the next part at 15%, next at 25%, etc. Therefore, if you find yourself just on the edge of a tax bracket, it really does not make any difference which side of that line you end up falling on. That having been said, of ...


7

Can you make use of an HSA (health savings account) or a medical FSA (flexible spending account)? Depending on your medical coverage, one of these may be available to you. Buying a house usually does the trick, between property tax and interest, it's not tough to have quite a bit in deductions. Of course, you need to want a house in the first place.


4

Yes, if you live in NYC, you pay City Taxes, no matter where you work. If you live in New York City and earn income, you are charged personal income tax. Also, see the withholding requirements for businesses for further proof: Who you must withhold tax for New York City residents even when services are performed outside New York City ...



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