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To be used for any question related to tax deductions.

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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?

The Tax Cuts and Jobs Act (TCJA) defines a qualified trade or business as exluding a "specified service trade or business" and lists "consulting" in the list of business types. But then it makes an ...
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1answer
73 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 ...
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1answer
87 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 ...
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1answer
56 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 ...
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1answer
375 views

Mortgage interest tax deduction

I am having some issues figuring out how the tax deduction for mortgage interest works. This is for California, USA I have a home that I bought for $807,000, with 2 loans: $645,600 at 4.5% $80,700 ...
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2answers
52 views

Calculate order discount correctly when Tax is set per unit?

I'm sure this has been asked before, but I could not find an answer when I searched. Lets say I have an invoice with 3 line items shown below (All excluding tax) SomeItemOne - Cost:£2.45 | Qty:1 ...
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0answers
34 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 ...
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3answers
6k 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 ...
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0answers
78 views

Can I create a business for finding contracts, and hiring other contractors to complete them?

I'm a freelance web developer who routinely finds and completes contracts. However, I've found it even more profitable to accept contracts given to me, and hire other contractors to complete the work, ...
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1answer
187 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 ...
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1answer
39 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?
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What year should I deduct a business expense that was paid online at the end of the year but not processed until the next year?

I paid for some business expenses, which are tax deductible, at the end of the year. I paid for them online and set it up as an ACH electronic draft so the money would be paid out of my bank account. ...
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1answer
63 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 ...
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2answers
96 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 ...
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13answers
22k views

Isn't “I bought [blank] as a tax writeoff” complete nonsense?

There's a trope in movies where people do something to keep from being bumped into a higher tax bracket (For example, in The Big Lebowski: "I'll have to check with my accountant, but it might bump me ...
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0answers
24 views

RSU tax seems incorrect

I always get lost with the RSU, what I'm getting never seems right. For example, when I have 4 shares vested, I only end up with one. (E*trade will sell some of them to cover the tax) but the ratio ...
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1answer
61 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 ...
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3answers
369 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 ...
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2answers
129 views

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 ...
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2answers
62 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 ...
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0answers
16 views

529 Account: Contribution, re-imbursement and state income tax deduction all in 2018?

Would the following series events be a sensible course of action? Scenario: Person pays out of pocket after tax for two Masters degree courses in June 2018 and August 2018: tuition fees of $2500 ...
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1answer
52 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%: ...
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1answer
139 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 ...
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2answers
127 views

Can an independent contractor deduct the cost of a “home-made” meal when service is provided at a client's place of business?

Suppose an independent contractor (IC) has a principal place of business (location A) in which the IC provides a service to a client. However, with some regularity, the IC provides the service at the ...
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1answer
95 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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1answer
142 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 ...
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1answer
61 views

How to receive funds from outside India in Personal Indian Bank Account number?

I have an account in HDFC bank at Gurugaon district of Haryana. Now I have to receive the money from some foreign party , Can I accept the payment in above account? Will there be any TDS deduction ? ...
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1answer
75 views

USA: Can I deduct the cost of solar power that I didn't earn back in credits?

I am located in the USA. The federal government allows a 30% tax credit on solar. Details here: http://programs.dsireusa.org/system/program/detail/1235 In addition to that, it appears to me that ...
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0answers
44 views

Reclaiming value out of a car needing expensive repair [duplicate]

I have a car that I purchased for $6k. It drives fine, but needs a new computer, which will cost $2.8k. The diagnosis already cost $400. Given that doing this repair will be 46% of the car value, I am ...
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2answers
54 views

Can calculation of the amount of tax I will need to pay if I take a home loan be done if I present actual figures?

This is related to the India. So an answer pursuant to the Indian IT rules would be much appreciated. Let's say my income details are: Gross Annual Income: Rs.10,50,000 HRA received from employer: ...
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1answer
109 views

How can I claim a tax deduction for home improvements made to my rental property?

Scenario I need to do 5k worth of home improvement in the form of replacing an A/C and a furnace. The property is a rental and I'm probably going to break even this year. On the other hand, I have ...
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2answers
850 views

Casualty loss is only basis, not fair market value, for tax purposes?

I just want to verify that I have a correct understanding of the IRS position that casualty loss deductions are only the basis of the property lost, not its fair market value. For example, lets say ...
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1answer
81 views

With a lump sum severance, is the employer responsible for paying any portion of the withholdings?

I received a lump sum severance payment, with the typical withholdings for federal, state, medicare, and social security. I was under the impression that a company shares some of that responsibility ...
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1answer
84 views

Does it make sense to seek tax deduction for a lecturer with 15K a year

I am a lecturer with salary 15K per year. Does it make sense to seek deductions in my current situation?
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2answers
2k views

How long to save losing lottery tickets (USA)

I know I can write off losing lottery tickets (a) up to the amount of any winnings, and (b) provided I itemize my federal taxes. But does that apply only to losses in the same year as winnings, or ...
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1answer
79 views

Used ToD life insurance to pay estate bills; any tax benefit to the insurance beneficiary? (USA)

The deceased owned the life insurance policy and named a single beneficiary to receive the insurance money (transfer on death). That single beneficiary used all of the life insurance proceeds to pay ...
2
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1answer
94 views

What should I claim on tax withholding?

I currently just graduated and received a job! Wahoo! My Dad told me he is still going to claim me though, for this year anyways. First question is: What does that really mean? Also, should I claim a ...
2
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1answer
69 views

Taxation on money earned working remotely for a US company while living as an expat

As a US citizen, if I work a US based tech job remotely from a foreign country as a permanent resident (Latvia if it matters), but all my money is paid into US accounts, is this money still considered ...
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1answer
21 views

S-Corp 1040 deduction?

If I own an s Corp and the s corps pay my health insurance do I take a deduction on form 1040? And if I take a deduction on 1040 do I get that exact same amount back in a refund?
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1answer
80 views

cash out refi question

If I refinance a commercial property and take money out to pay off my primary residence- is this a taxable event? and is the mortgage interest on the new commercial loan tax deductible? Property is ...
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2answers
179 views

LLC with $100K Profit - How to Reduce Taxable Income via Spending and Investments?

I'm a US citizen with a US-based single-member LLC operating in the internet space that will have $100K of profit / taxable income this year. I'm looking for ways to creatively (and legally) spend/...
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0answers
66 views

Can I deduct an office space rental if I am not self employed?

As a remote worker, I'm looking at renting an office space $250/mo. I am not self employed but instead working for a company. Is this expense tax deductible?
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1answer
55 views

2018 Federal Income Tax Deduction for Owner Occupied Rental Property

I live in a 3 bedroom condo in California and decided to rent out 2 of the bedrooms and live in one. The mortgage is $1M and interest is $4000 per month HOA is $600 per month Property tax is $1000 ...
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1answer
161 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, ...
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1answer
164 views

Creating a limited company in the UK with which to invest in real estate/stock market

I have a full-time job, and as a second job I work as a contractor for another company. Since the income I get from my first job is enough to pay for my living expenses, I am currently saving and ...
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1answer
39 views

Received Excess Distribution from IRA how to reflect in Taxes

How to reflect excess distribution I received from regular IRA account (brokerage). I rolled over 30K from one IRA to brokerage IRA (within same bank) I contributed $5500 to brokerage IRA (late March ...
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4answers
4k views

Deducting charitable donations under new U.S. tax law

I usually donate about $20k to charities every year, and I don't have many other deductions to claim. Given that the new tax law doubles the standard deduction to $24k, I effectively don't get tax ...
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1answer
81 views

My wife telecommutes. Mortgage on my name but she is on the title. Can we tax deduct?

My wife telecommutes for her employer. We both are joint owners of the property but the mortgage is only on my name. Can we tax deduct the mortgage interest and insurance even though she isn't ...
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1answer
55 views

How'd an entrepreneur earn extra this year, by donating last year's a percentage of his company to charity?

This Reddit post: So what an individual can do is offer to donate, say, 10% of his company to a charity. Let's say that the company did really well last year so that guy can easily find an ...
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2answers
94 views

Tax Avoidance: Mixing gains and losses in the same tax year?

I am currently looking at liquidating some of my investments and trying to decide which ones to sell, to cover some cash expenditures I will have. For the matter of this question, let's say I need $10,...