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Questions tagged [tax-deduction]

To be used for any question related to tax deductions.

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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
98 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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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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1answer
63 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
379 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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3answers
171 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
77 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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1answer
55 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
143 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
128 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
101 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
161 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
285 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
83 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
45 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
56 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
114 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
856 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
87 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
86 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
89 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
95 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 ...
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1answer
84 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
25 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
81 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
198 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
68 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
81 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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2answers
213 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
187 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
41 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
5k 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
83 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
56 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
104 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,...
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0answers
60 views

If you're mostly on W-2, how much can you benefit from pass-through?

I'm having trouble understanding how the pass-through deduction works when you make only part of your income as an independent contractor. Married filing jointly this year, we expect to earn (gross) ...
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2answers
106 views

Can I deduct rent against a capital cost?

How does rent work with regard to capital costs? For example, let's say I build a storage facility on my property and it costs me $100,000 to build it. I rent it out for $1000 per month. Can I then ...
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0answers
48 views

Germany tax class residence permit valid anmeldung

I was in Germany last year for more than six months and I have a valid RP as well. Now, I am planning to move back to Germany for just 2 months for a work assignment under Short-term WP. Now my ...
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1answer
101 views

Circular dependency involving IRA deduction

I am not able to resolve the following circular dependency. In order to get Adjusted Gross Income (AGI) one needs to subtract an "IRA Deduction" from Gross Income. Modified AGI must then be computed ...
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3answers
94 views

Business-gift expenses in the US?

In the USA-IRS milieu, Consider these two examples: Sally is self-employed. Her business has various clients. So in the new tax year 2018 under whatever rules apply in 2018, Sally flies to Japan to ...
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1answer
132 views

Instead of receipt, can a bank statement be used as evidence for expense tax deduction?

I'm new to tax returns as well as this site. I'm filling my tax returns, and last year I've been taking lunch at this restaurant. I don't have the receipts but the charge is listed in my bank ...
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1answer
1k views

Taxes overpaid when alive; file amended return after death?

While collecting data to file a return for someone who is deceased, I discovered a significant deduction that was repeatedly not claimed in previous years. Specifically, health insurance on Schedule C....
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1answer
64 views

Expenses - interest?

In the milieu of the USA / IRS, I was wondering. Say you get a loan from the bank, $20,000, for a few months. This is for your business. You use it to buy some equipment, waiting for a client to pay ...
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3answers
3k views

Why would a previous year's tax deductions affect the current year's taxes?

For the first time in several years, I'm preparing the income tax filing for my family. Since a professional did the preparations last year, we had no electronic records to directly load into the ...
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1answer
119 views

How does the IRS know which country I live in?

I live in Morocco and I recently ordered an EIN number from the IRS because I work in Envato Market and because we have an income tax treaty with the US of a (10%). Meaning that, If someone from the ...
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1answer
149 views

USA: Renter had major medical setback and may become unable to make rent. What implications?

For 2017 taxes (USA) I formally converted my first home to a rental by declaring income, establishing cost-basis for depreciation, etc. The tenant's lease is July/2017-July/2018. Complicating things, ...
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0answers
32 views

Avoid wasting Canadian tuition credit with double taxation on Canadian Income in US

I live in US with income in Canada and have a large amount of unused tuition tax credits in Canada. My understanding is that when doing US Tax I should report my full Canadian income and the amount ...
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1answer
43 views

Employee v. 1099 small expenses in the USA

In the USA, Sally is a normal employee making $100,000 a year At the end of the year, she files her taxes with taxact.com and pays the $20 fee. Sally simply claims the standard deduction of $12,700....
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1answer
4k views

401k withdrawal leaving US, non citizen

Help me understand the taxes and penalty on 401K withdrawal. What is wrong in my understanding in the following? I am a non-US citizen and I plan to leave the US in 2 years. My company matches it ...