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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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Can I deduct the % kept by Charity consignment stores?

Imagine I consign items to a charity consignment store. They sell all the items for $100 and send me a check for $60. They are a charity (501C-3) and kept 40% of the sale, so is the 40% Tax deductible?...
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How much tax do I pay if my deductions are more than my taxes owed?

To begin, I would like to say that I am 19 years old and this is my first time paying taxes for myself, so please inform me if I am not approaching this correctly. Be wary of a little bit of math. I ...
crtobin34's user avatar
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Content creator tax obligations

I create music and upload to YouTube. I bought equipment, editing software, etc for my band last year (2023) but I just started releasing the videos on Youtube this year (2024). Can I still claim the ...
Jonathan's user avatar
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2 answers
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Equipment purchase for client

I have a small business. In FY2023, I (my small business) purchased an equipment on behalf of a client for which the client reimbursed me, therefore, the payment appears as income. The equipment is ...
tamasp's user avatar
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Filing for a patent application as person vs an LLC

I am currently writing a software/app and founding a startup. I have not form an LLC or any legal entities yet. But I am about to pay a lawyer to draft a patent for my app. Question: If I file as a ...
Bear Bile Farming is Torture's user avatar
12 votes
1 answer
4k views

Donated $500 to a charity but didn't get an official receipt

In January of 2023 I donated $500 to a charity. I got a donation receipt from PayPal at the time. The subject line says "Receipt for your donation to [...]". However, the bottom of the email ...
Buge's user avatar
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4 votes
1 answer
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I filed my taxes not knowing I was being claimed as a dependent meaning that the Head of Household will have more deducted than before

I filed my own taxes unaware that I could be and apparently was being claimed as a dependent, so it's been brought to my attention that the Head of Household could have a higher standard deduction ...
Ben Connor's user avatar
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Are endowment plans better option than tax saving FD for last day tax saving investment?

Its last day (31st March 2024) for investment in order to save tax. And I have not done anything ! 😢 Now I am planning to do some just to save tax. I am in 20% tax slab. Some options are closed for ...
RajS's user avatar
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3 votes
2 answers
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Why is there so much fuss about tax return?

I work in Switzerland and pay my taxes in Switzerland. I was thinking about filing a tax return - but I do not see the point. There might be some basic reduction to work-related expenses anyway, and ...
Alex's user avatar
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1 answer
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Are there significant tax benefits in Germany for renting out a newly bought apartment for 1 year before moving into it?

There seem to be big tax benefits of renting a newly bought apartment in Germany rather than staying in it in the first year. Say, you want to buy an apartment in Bavaria for 300.000€. You have to pay ...
gdrt's user avatar
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Can DWP withhold money when you receive inheritance?

My uncle (T) has been in and out of gainful employment for years, so much so he has had over 20 full-time positions by the age of (almost) 60. Inevitably he's let go, sometimes receiving redundancy ...
spikey_richie's user avatar
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2 answers
2k views

Can a community charitable organization collect donations on behalf of a specific person?

A member of my community passed away and I want to arrange a small crowdfunding page for his widow to help her with immediate expenses until the life insurance and paperwork gets done. To encourage ...
lgshost's user avatar
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How should I allocate expenses for rental property with mixed personal use where the expenses are only for business use?

I have a house in California, USA, that I offer as a short term rental. In 2022 it was 95% business use. In 2023 it was 20% business use. In 2024 I expect it to be 95% business use again. I have ...
Matthew's user avatar
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Estmating Sales Tax & Deduction (specifcally U.S. Texas)

I am a bit confused regarding the calculation of a sales tax deduction, in this case in Texas, U.S. where there is no income tax. I am using TurboTax and it is estimating a sales tax deduction of ...
AA040371's user avatar
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1 answer
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Do charitable deductions apply to long term capital gains, or only ordinary income?

Let's say I have an income of $100k and long term capital gains of $500k. If I make a charitable donation of $200k cash, will that first reduce my ordinary income by $100k and then my LTCG by $100k, ...
Flanko's user avatar
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Costs deductible for vacation home built remotely with a builder

I built a vacation home with a builder and sold it two years after completion. My main home is in Texas, the second home was built in Arizona. Costs for construction of the home and costs for ...
Billy Crash's user avatar
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Should I file taxes if I opened Amazon seller account but never used it?

Me and my husband entered the US with F1(him) and F2(me) visas. He was a fully funded PhD student and we used to send our tax papers jointly. Last year we filed for EB2-NIW visa to get a Green Card, ...
best_of_man's user avatar
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2 answers
69 views

MESP Tax forms for years with only contributions

I started two 529 funds for my children in the 2023 calendar year and want to claim the contributions from my Michigan State Income tax. But I was looking on the MESP site and can't find any tax ...
sedavidw's user avatar
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Reduce income tax payable in Canada for an individual taxpayer

For the 2023 tax year, in Canada, how can I reduce my personal taxable income/taxes payable on my T1 tax return? I know I can use my RRSP and a spousal RRSP as a deduction against taxable income up to ...
user122866's user avatar
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1 answer
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Amending IRS return after receiving tax refund interest

I filed my original 2022 tax return last year in February and shortly after received a refund. A month later, I realized I forgot to include my IRA tax-deductible contribution and filed an amendment. ...
Michele's user avatar
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Can you withdraw capital gains from a stock sale and still deduct interest on the original cost basis?

Say you borrow 50k and buy 100k of shares. Then the stock rises to 100k You sell half and cancel out the loan, but also have 50k of capital gains. If you withdraw the 50k gain to maintain the original ...
Mike Hampel's user avatar
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1 answer
837 views

How do I handle tax withholding when I have multiple jobs?

I’ve been stuck in my taxes for the past 3 years because I don’t know how to adequately fix my situation. My first job pays $60k a year. My second paid me $22k this year but it was contract. I never ...
Kyra Burnett's user avatar
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Tax question: W8-BEN - How to fill 2: Claim of tax treaty benefits for Indian who worked in UK for a US company and then moved to India (not working)?

I am an Indian citizen worked in UK for a US company and then moved to India and not working in India for that company but has the stocks from that company. How to fill the Part 2 in W8-BEN: Claim of ...
Vijay's user avatar
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2 votes
1 answer
257 views

Do I have to file a return to be able to carry over a past capital loss?

If I have no income for a year but incurred capital losses in a past year, do I have to file a return for each year following the capital loss (even if I have no income) in order to retain the capital ...
sterid's user avatar
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1 answer
236 views

What are "transactions and earnings" within the IRA?

I'm a European citizen who needs, for professional reasons, to understand in broad terms how the IRA works. I read the wikipedia page, and there is written that "all transactions and earnings ...
robertspierre's user avatar
1 vote
1 answer
121 views

Can I deduct costs associated with rental improvements?

I have a back ADU (accessory dwelling unit) at my home in Portland Oregon that I rent out. I live in the main house and the ADU is a totally separate 800 square foot house with a separate address but ...
user3644951's user avatar
1 vote
1 answer
86 views

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 ...
Lloyd Banks's user avatar
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1 answer
351 views

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 ...
Dave Weaver's user avatar
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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/...
qwerty_99's user avatar
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1 answer
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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 ...
best_of_man's user avatar
2 votes
1 answer
233 views

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 ...
KnowItAllWannabe's user avatar
6 votes
2 answers
2k views

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 ...
Matthew's user avatar
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2 votes
1 answer
248 views

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 (...
Tabby's user avatar
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3 votes
3 answers
474 views

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 ...
Ajedi32's user avatar
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3 votes
0 answers
165 views

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 ...
Andre Borges's user avatar
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0 answers
31 views

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 ...
ma11hew28's user avatar
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3 votes
3 answers
602 views

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 ...
Bob's user avatar
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0 votes
2 answers
32 views

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 ...
Subhajit Panja's user avatar
1 vote
2 answers
91 views

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 ...
Priyanshul Govil's user avatar
1 vote
1 answer
276 views

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 ...
AlanSTACK's user avatar
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1 vote
1 answer
106 views

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 ...
Ark-kun's user avatar
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0 votes
0 answers
108 views

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 ...
Ark-kun's user avatar
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1 vote
1 answer
94 views

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 ...
money.frictionlesspulley's user avatar
1 vote
1 answer
77 views

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 ...
KALAI SELVAN's user avatar
2 votes
1 answer
264 views

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 ...
Ark-kun's user avatar
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1 vote
0 answers
32 views

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 -...
ab2's user avatar
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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 ...
AlanSTACK's user avatar
  • 1,570
0 votes
3 answers
306 views

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 ...
dennlinger's user avatar
2 votes
1 answer
126 views

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; ...
Nelus's user avatar
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1 vote
1 answer
382 views

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 ...
arcyqwerty's user avatar
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