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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US Short Term Rental - Can You Deduct The Full Property Depreciation And Property Taxes For A Primary Residence?
I have a primary residence where I am domiciled and file my taxes. I am on the road for work during most of the year and will rent out my residence via Airbnb when I am away. I know that I can ...
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Can I claim the tax back from my lawyer's fee?
I received a settlement from a car accident of 285000.
I have a personal GST number, so can I claim the tax from my lawyer's 30% fee which seems high?
I haven't worked since this accident in 2012. I ...
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Where can I find charitable donation tax credit rates for each provinces and territories in Canada?
The only official source I found was this one and it's from 2017...
https://www.canada.ca/en/revenue-agency/services/charities-giving/giving-charity-information-donors/claiming-charitable-tax-credits/...
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Is it better to get a resale certificate or register an LLC in CA?
I would like to sell my 3D printed items on Amazon, Etsy, eBay, Shopify, etc. I recently discovered that I can avoid paying taxes when purchasing raw materials or business equipment by obtaining a ...
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Can Schedule A medical expenses offset long term capital gains?
My elderly parents have recently started incurring very significant expenses for in-home care. They are considering selling a vacation home with a long-term capital gain to cover their caregiving ...
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Can I expense guest amenities for my AirBnB?
I own an AirBnB in California. This is a standalone house, I do not live there.
In the course of operating it we furnish amenities such as Roku devices, or Foosball tables, or BluRay discs.
Can these ...
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Does temporary lodging qualify as a moving expense for California tax deduction?
Does anyone have a detailed source for what qualifies as a moving expense for California state tax purposes?
I moved to California from outside the US and when I arrived I stayed in temporary lodging (...
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If I receive goods as a form of compensation, can I sell those goods without being double taxed on them?
I recently got invited to participate in a program which sends people consumer products free-of-charge in exchange for a detailed, unbiased review of the products in question.
When enrolling in the ...
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How does HMRC collect underpaid tax
In 2022/23 tax year, I was working for a UK employer and had a base salary around 100k GBP. My tax code was 1071T, which apparently means that I had a tax free allowance of 10710 per year (according ...
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Can I carry forward investment interest expense even if I take the standard deduction? [duplicate]
On IRS 2022 Form 1040, if I take the standard deduction, I don’t think I’m allowed to deduct investment interest expense on Schedule A, line 9, but can I still file Form 4952 to report any disallowed ...
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How do I value items for charitable deductions?
A US resident donates a used book to a charity. He wants to deduct the value of the book on his tax return. He observes that a very similar book can be bought for $30 at a local used bookstore. The ...
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EPF with PPF clarification for salaried person
Suppose a non-government salaried person has an EPF account.
Employee Contribution EPF amount 4500 Rs and Employer Contribution EPF amount 4500 Rs
What will be the 80C and 80CCC deduction benefit ...
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Claiming Federal Tax Withholding Exemption for first year in US
I am a student, and it is my first-year present in the United States. According to sources, I am eligible to claim exemption from federal withholding if the following two conditions are met:
You owed ...
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When is interest incurred while trading on margin deductible in Canada?
To clarify my understanding of margin loans in Canada: the interest expense incurred while trading on margin is deductible, as long as the stock pays dividends, right? Also, if it is deductible, would ...
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When can you make home improvements and have home mortgage interest deductible
AFAIK, the mortgage interest is only deductible when used to buy or substantially improve the house. But I did not see any mentions of when the improvements must take place.
Imagine, I take a $500,000 ...
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IRS publication 936 weirdness. Deductible home mortgage interest limits and zero-pay or cash-out refinance
There is a 750,000 home acquisition loan limit for deducting mortgage interest. This limit only applies to "home acquisition debt" (excludes the cash-out part). However this is used to ...
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India TCS tax on foreign remittence
I am an NRI with some NRO and NRE accounts held in an Indian Bank.
I am trying to remit an amount from sale of a property for which TDS has already been paid. The amount was deposited to an account ...
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Deducting option trading losses for income tax filing
I am in India. Let's say I have an income for 25 lakhs and my losses in option trading for 10 lakhs. How to file ITR for the same? Will my losses in option can be carry forward for 8 years?
Suppose I ...
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Deducting mortgage zero-cost refinance points from taxes when using the money for home improvement NEXT year
I have refinanced a mortgage and paid for quite a lot of points. The refinance was zero-cost, so the points came from the increased loan amount. I used the money I saved due to zero-cost refinance to ...
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Combining Cash and Stock Charitable Deductions for U.S. Federal Income Tax; and cutoff of total allowed
For my 2022 return, I have:
(a) cash charitable deductions made in 2022;
(b) unused cash charitable deductions from 2021 which I will exhaust on the 2022 return;
(c) unused stock deductions from 2021 -...
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Can you prorate the standard deduction as a dual-status alien in the United States? [duplicate]
According to the IRS:
"You cannot use the standard deduction allowed on Form 1040, U.S. Individual Income Tax Return. However, you can itemize certain allowable deductions."
Does this mean I ...
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Standard deduction when moving to US throughout the year
Consider the following context:
Person A is moving to the US in July of 2022, formerly not tax-liable in the US (non-reisdent alien). They start a regular employment in the US for the remainder of the ...
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Does stock based compensation (SBC) result in double counting (double deduction) in calculating EPS on a diluted share basis?
As a simplified example, where SBC is issued as RSU's and all RSU's vest in the same year.
Assumptions:
Shares Outstanding before RSUs: 10,000;
SBC= 1000 RSU's at Fair Value per Share: $2 = 20,000;
...
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Margin interest deduction carryover when claiming standard deduction
Margin interest is a deductible investment expense on a US 1040 Schedule A as an itemized deduction
Margin interest can be carried over year over year until it is fully deducted
If the standard ...
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Can I make a trip tax deductible if it is for personal development?
I'm a part-time software engineer, and I want to go to the Bay Area to meet people I've only met online, do networking, meet my employer and former employer in-person, etc. However, it's a trip I'm ...
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Is carryforward / NOL derived from operating income (EBIT) or taxable income (EBT)?
From Strategic CFO
A net operating loss occurs when a company’s operating expenses and
allowable tax deductions exceed its operating income for an accounting
period.
From Investopedia
A net ...
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Stock how to add borrow fees to taxes
When doing taxes, how to account for stock borrow fees for hard to borrow stocks. Can you deduct this from your income?
Say I short Company abc
Cost: $5000
Proceeds: $6000
Borrow fee: $3000
So is ...
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Is margin interest deductible in Pennsylvania
I am filing taxes for a family member and they have a sizable amount of investment income in 2021, as well as some margin interest. Both the internet and my tax software made it clear that I can ...
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Massachusetts State Tax: Can one at the same time apply a FICA deduction on the state tax return and ask for a FICA refund?
I am J1 nonresident for tax purposes using the Sprintax software and I ran into a bit of a conundrum. The software is applying a FICA deduction for my MA state tax return but I am claiming a refund of ...
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Why doesn't anyone look at the combined federal and [Your State] tax rate, grouped by bracket?
Why doesn't anyone look at the combined federal and [Your State] tax rate, grouped by bracket? Let's say like the Federal + New York tax rates?
Wouldn't this determine the incremental amount of total ...
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Mortgage interest deduction limit: omit house?
We have an unusual situation with the mortgage interest deduction limit. We moved late in the year; as a result, we had two mortgages, #1 and #2. #1 was most of the year and had a typical amount of ...
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Under what circumstances could an employee be able to have company provided 401k tax deductible and Trad IRA
Tax software is stating that I am able to take Trad IRA with deduction.
This seems odd as I contributed max amount to employer provided 401k. I was under the impression that fully contributing to 401k ...
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zerodha - brokarage charge
i am using zerodha app for buying stock .
Today i found that charges(zerodha brokarage charge,stt,stamp duty) applied for buying stock.
please let me know is there any new rule /changes that zerodha ...
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How to deduct a loss from an investment that went bankrupt?
We had money in a BlockFi account, which went bankrupt at the end of 2022. How can we deduct that loss on our 2022 tax return?
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Convert Traditional IRA into Roth after deduction submitted to IRS
I recently opened a new traditional IRA account and deposited the maximum contribution for last year (2022 - 6k). Since my 2022 MAGI was low enough (<144k as single), I then amended my already ...
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HSA and Concierge Medicine
I currently have a high deductible healthcare plan and max out my HSA. I am looking for a primary care doctor and have decided to use a concierge doctor. On the doctor's website it says:
Insurance ...
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Does every US state set its standard deduction to match the federal one? Why?
The United States' 2017 Tax Cuts and Jobs Act nearly doubled the U.S. federal income tax's standard deduction from its 2017 level, starting in 2018. My state also increased its income tax standard ...
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better understanding wash sale rule
This is for USA tax purposes.
I find wash sale rule simultaneously a simple and complicated concept. I kind of understand overall idea, but miss the details. Surprisingly, I couldn't find many ...
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Can I use my Summary of Payments as proof of Health Expenditure?
Last year was an expensive one for my family health-care wise. I have downloaded all my family's Summary of Payments from my insurer, and I was hoping to keep hold of those as my proof of expenditure ...
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Can a single file tax as "married file jointly" to take advantage of more standard deductions?
Can a single file tax as "married file jointly" to take advantage of double the standard deductions? Why or why not?
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Tax Reporting for Teen Freelancer using PayPal and Outsourcing Work: Necessary Steps?
I have a 16-year-old doing some freelancing as a side gig. I'm pretty certain that the PayPal income does not meet the $20k/200 threshold. There has not been any 1099 forms from PayPal. Should any ...
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Are Colorado TABOR refunds taxable as federal income, if a state sales tax deduction was taken previously?
Colorado has a law called TABOR that, in years when the state government has more revenue than predicted, allows every taxpayer to claim a refund. This is done with a line item on the state income ...
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Understanding Car Rental Tax Deductions
Trying to wrap my head around the requirements to take tax deductions against a car rental activity (e.g Turo) and how it would affect other (w2) income.
The IRS states "In general, rental ...
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Which "special rates" to my case when filling out the W-8BEN Form
I'm a software engineer for a US-based company currently residing in India. When filling out the W-8BEN form, I am stuck at Part II (Claim of Tax Treaty Benefits). I am not sure which Article do I ...
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If spent money on a patent application that went nowhere. Can I count it as a loss in my tax return?
It was almost 4k. This would be considered a business loss, no? Can I deduct that from my taxes?
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Tax deductions for a rental property, personal vs LLC
I have numerous questions on the tax deductions regarding a rental property owned by two people. Certain things can be deducted from your income tax each including property taxes, improvement costs ...
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The Government might have seized my investment assets, how do I treat them on my tax return?
I had money invested in Russia during 2022 through the ETF FLRU. At the beginning of the year when the Russia/Ukraine conflict start the government seized a bunch of Russian assets including this ETF. ...
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I donated cryptocurrency to a charity, but the receipt is in dollars. How is it taxed?
In 2022 I made a donation of $100 to a tax-exempt charity, which I paid using cryptocurrency (let's say 123.456 units of currency XYZ). The tax receipt I got from the charity acknowledges a donation ...
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Can I reduce my state income tax deduction, to avoid taxes on the refund?
Suppose I have paid $3000 in state income taxes in 2022, but I expect to receive a $1000 refund. I am itemizing deductions on my 2022 federal return, so normally I would deduct $3000, then include ...
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Can I use a Mortgage Interest Statement Form 1098 to reduce my taxes?
I have only one house, which I live in. I received a Form 1098 Mortgage Interest Statement for 2022 from my bank. Since I'm early in the mortgage, the interest I pay is quite a large percent of the ...
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