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Questions tagged [tax-deduction]

To be used for any question related to tax deductions.

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5
votes
1answer
128 views

Home office deduction using simplified method & expensing of non-permanent office modification?

This year (2014) I'm planning on taking a home office deduction as I have recently become an independent contractor doing computer programming. I have set up an area in the basement about roughly 300 ...
0
votes
1answer
477 views

If I own 50% of the house, and my partner rents the home how is the rental income taxed?

I own 50% of a home, which I would like to use to write off the taxes, as I will be paying the bills. The other person invested 50% up front and they would like to rent out a room in the house. If ...
5
votes
2answers
1k views

Rollover IRA vs traditional IRA (can I make contributions to the rollover IRA?)

I am single and used to contribute to a Roth IRA (my last contribution was years ago), but now my AGI is over the limit to contribute to the Roth. I have a "rollover IRA" that I opened a few years ...
5
votes
1answer
402 views

Is the interest on a non-bank loan for a house still considered tax deductible?

I'm trying to buy a house that's listed as not inhabitable in its current state. I want to buy it so I can repair it and live in it. I have all the financials I need, and I have excellent credit, but ...
1
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1answer
725 views

If you hire a tax attorney to do your OVDP paperwork, are the fees tax deductible?

I know that tax preparation fees are tax deductible in US federal taxes, but I'm not sure if the failure of FBAR and reporting international passive interest income (followed by a subsequent ...
3
votes
1answer
1k views

When claiming a moving expenses tax deduction in Canada, does order of events matter?

I know I can claim moving expenses if I move because of a new job. But does the sequence of events matter? While I'm doing interviews, I'd like to sell my house and buy my new house in the new city. ...
2
votes
1answer
365 views

Tax Deduction under section 80C for Indian with foreign family Paying International Premium

I am Ronit, indian holding indian passport. My family, my wife and kids are foreign nationals and holding foreign passport. I have purchased insurance from AIA and I am paying insurance premium for ...
0
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1answer
2k views

Are Credit Card statements sufficient for receipts to itemized deductions?

I was wondering what the general consensus is on using a credit card statement as a receipt. Only for purchases that are clearly for a specific vendor and/or related-expense. Not just a general Wal-...
1
vote
1answer
84 views

Can I legally include an expense made to a school that was later refunded? (American Opportunity Tax Credit)

This is ethically questionable, I'm sure of that. However, this is an expense that was made and should be, according to the information I am provided, acceptable. This is also a purchase that will not ...
9
votes
4answers
682 views

Are tax deductions voluntary?

If I did something that I know is a deductible expense and did not deduct it, is that a sanctioned tax filing? The result is that I would end up paying MORE tax. This also results in me reporting a ...
5
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2answers
3k views

Can I claim my parents as dependents on my tax return if they stayed with me for 5 months?

My parents are retired and support themselves with pension and savings I send them. They both stayed with me for 5 months last year in the US, but mostly spend their time in India. They both have SSN ...
1
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2answers
182 views

What are some quick ways to lower tax bill due this year?

I'm married with no kids and my wife owns the house we live in. We both have claimed a withholding allowance of 1 (each on our individual jobs). We both invest in our 401(k)s. I contribute 6% of my ...
1
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1answer
57 views

Can I deduct “Non-Reimbursable Expenses”?

I have this item in my pay stubs: Non-Reimbursable Expenses I wonder if I can deduct it. My employer told me that it is for 'legal and accounting expenses'. My W-2 makes no mention of it. The total ...
2
votes
1answer
514 views

Roth IRA vs. Traditional for married couple with AGI over $120k?

My wife and I have an AGI somewhere between $120k - $140k depending on how much I make on side gigs throughout the year. We both started new full-time jobs within the last 12 months. Here is the ...
2
votes
1answer
29k views

If I take a loss when I sell my car, can I claim a capital loss deduction on my income tax return?

If I sell my car off at a loss, can I write that loss off against my income to save on tax? Does it matter if the car was used just for personal leisure use, or if I used the car to generate business ...
4
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1answer
1k views

Can I claim my girlfriend as a dependent?

Can you claim your girlfriend as a dependent in the USA.
0
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1answer
57 views

How to fill tax return for income received to paid the health insurance premiums that my spouse pays for me?

My health insurance is provided by the employer of my spouse, but my employer wanted to provide the benefit of insurance so he paid me the money that my spouse was paying, so if my spouse pays $40 for ...
-1
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1answer
368 views

Is the interest on money borrowed on margin in/for an RRSP considered tax deductible?

If I borrow cash in my margin trading account which happens to be an RRSP account, does the interest on that money become tax deductible from my income? I know if I put money in my RRSP from my salary ...
1
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2answers
730 views

Is impounding property taxes and homeowners insurance into a mortgage cost effective?

What are the pros and cons of impounding property taxes and homeowners insurance into the mortgage, for the homeowner? Are there any economic advantages to paying them separately? Tax benefits, non ...
5
votes
1answer
258 views

Are the Social Security Tax and Medicare Tax on W-2 considered tax deductible?

Are either the Social Security Tax (Box 4) or Medicare Tax (Box 6) deductible? I don't see anywhere other than line 69 of 1040 (Excess Social Security Tax) that mentions either, so I don't think they ...
4
votes
1answer
1k views

Gym membership tax deductible?

I am a self-employed contractor. My wife and I have a paid position with our church doing campus ministry at our local university. Our position is really all about contacting people and spending time ...
4
votes
2answers
258 views

Usage of non refundable tax credits

I have spent 5 years in Canada. The first four were as an international student whereby even though I did not have any significant or no income, I filed my taxes so that I could accumulate non-...
2
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3answers
1k views

Are stores that offer military discounts compensated by the government?

I read an article on CNN titled My grocery bill will skyrocket if military stores close about the possibility of cutting back funding to military grocery stores due to government spending cuts. I was ...
4
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4answers
1k views

Can a company donate to a non-profit to pay for services arranged for before hand?

For example - a non-profit is in need of a website. Can a company say "StackExchange" donate to a non-profit company say $5,000 in agreement that they will spend that on paying a designer for a new ...
5
votes
1answer
120 views

How do I claim moving tax deductions in new year?

How do I claim my moving expenses incurred in 2013 in my 2014 tax return? I won't be filing 2013 tax return because I didn't work in 2013 tax year. I recently moved to US and will start job from 2014. ...
1
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0answers
56 views

Possible for me to purchase my own health insurance pre-tax? [duplicate]

From what I understand, if I get insurance from my work the amount I pay is pre-tax (correct?). Is there any way for my work to allow me to purchase my own insurance on the exchange with money that ...
4
votes
1answer
525 views

Is this understanding of S-corp taxes correct?

I am putting together a business plan for a s-corp and trying to figure out how the taxes will work. Below is the scenario and my understanding: S-corp shareholders: 2 partners (husband & wife) ...
13
votes
1answer
3k views

Does the Affordable Care Act (Obamacare) require insurance to be paid with pre- or post-tax dollars?

I would like to continue paying for health insurance with pre-tax dollars. But, according to this Washington Post article, buying healthcare through the Affordable Care Act (Obamacare) requires post-...
2
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2answers
1k views

How to declare/deduct owner occupied multi-unit property that only owner occupied one year, but is partially rented the next?

Context: I'm still doing 2011 and 2012 taxes. I purchased a house in the beginning of 2011 that is 3 units all of which needed some level of renovation. For the first year, 2011, I lived in the whole ...
9
votes
3answers
88k views

What is the difference between pre-tax and post-tax paycheck deductions?

I am getting insurance for about 4 months, the length of my contract with a company. I am given the option of having the cost deducted from my paycheck pre-tax or post-tax. What is the difference? ...
-3
votes
2answers
248 views

Does it make sense to incur a business expense just because it can be deducted?

I am trying to prove to myself that incurring expenses just for the purpose of writing them off never saves money. It is always better to not incur the expense at all if you can avoid it. This is my ...
2
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1answer
355 views

Should the cost of using public transit get deducted from my personal income or my corporations' income?

As a full time employee, certain costs are deductible from personal income. (e.g cost of public transit pass.) When the full time employee becomes an independent contractor, do these expenses ...
-2
votes
2answers
866 views

Why are mortgage interest and taxes considered tax deductible?

I have trouble understanding the rationale behind why certain things are tax deductible while other things are not. For example, I understand that RRSP contributions are tax deductible because I am ...
0
votes
1answer
408 views

Can my own corporation deduct my expenses even if I am a full time employee?

Say I decide to become a software developer contractor and open a corporation. So, I am allowed to write certain things off as corporation expenses (e.g restaurant bills, gasoline bills, etc.) Then, ...
6
votes
1answer
61k views

Tax implications in India for sending money to India from US

I am planning to transfer around $8K-10K in my parent's bank account(Joint bank a/c) in India . I have read a lot of posts(like Will I have to pay taxes in India when I transfer money from a US bank ...
5
votes
1answer
1k views

Can I somehow claim my live-in brother- and sister-in-law on my taxes?

For most of this year (since February of 2013) my brother- and sister-in-law have been living with my wife and me. I own my home if that matters. They moved from Alabama to Wisconsin for better ...
0
votes
3answers
576 views

Personal Allowance in the UK - Are immigrants entitled to it?

Title says it all, can I as an immigrant have access to a personal allowance in the UK? As I understood, it's a set value of income that is not taxable. Is this for everyone or for citizens only? ...
4
votes
1answer
574 views

Are there any tax deductions I can claim if my in-laws move in with me temporarily?

My in-laws recently found themselves in a bit of a bind after unemployment/foreclosure and will be temporarily moving in with my husband and me. All told right now there are 2 additional adults and 4 ...
1
vote
2answers
123 views

Are there any tax benefits for job-related expenses?

I'm fresh out of college and am currently in my first full-time job. I would like to get a few books to improve myself in my job (I'm a developer). Are there any tax-related benefits to this, or ...
4
votes
2answers
372 views

Should withheld income tax be included as income?

Situation: Company C buys a flight ticket for employee E, for him to relocate. Ticket costs $X, so C increases the income of E by $X, and reports it as income on Form W2 form, Box 1 (Wages). C also ...
1
vote
2answers
267 views

How to enable my employer to pay for resident taxes/FICA they did not deduct from paycheck

As I mentioned in this question (Can my employer adjust FICA contributions on payroll they have already processed?), my first paycheck (after a sabbatical) in the first two weeks of February did not ...
6
votes
1answer
2k views

How to determine fair market value for a home donated to a fire department for training exercises?

In "Scharf v. Commissioner", the US Tax Court established that donating property for use in firefighting training exercises provides a valuable service to the community. If the receiving fire ...
4
votes
2answers
2k views

How do IRS pre-tax commuter benefits work?

I'm moving to NYC for a job and my new company offers a plan for Pre-tax commuter benefits. From what I've read the federal maximum for pre-tax dollars towards this is $245/month. I'm wondering how ...
5
votes
2answers
135 views

Does an RRSP loan provide any benefit, vs. simply making monthly RRSP contributions?

While evaluating a short term RRSP loan like this one, the numbers seem good on paper. But: If I need to save $1,000 in tax deductions, I need to put the entire borrowed money into the RRSP before I ...
3
votes
2answers
369 views

What will be the consequences if Negative Gearing is abolished in Australia?

There has been recent speculation in the Australian media about the Government possibly abolishing Negative Gearing in Australia in order to shore up falling revenues. In fact certain interest groups ...
4
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2answers
2k views

Can I write off time I spent working on my business?

So, I'm a freelance web programmer by trade, which means that my time really is money. I, occasionally, work on side projects of my own and forgo the possibility of earning direct income for that time....
3
votes
1answer
421 views

Federal 30% Solar panel rebate this year v.s. “business” expense (W9 the contractor?)

I operate my business out of the house. Can I claim my 30% federal solar rebate AND also get by with more business deductions and claim the 1099 contractor (making him fill out W9) as a business ...
12
votes
2answers
106k views

Will I have to pay taxes in India when I transfer money from a US bank to an Indian savings account?

I am currently in US, and would like to transfer some amount from my US Bank account to a savings account based in India on a monthly basis through a third party like Xoom or Transfast. If I'm going ...
5
votes
1answer
475 views

Comparing pre-tax versus post-tax health expenses?

I understand the concepts from this question and everything I have read says that the benefit of pre-tax expenses are that they reduce your taxable income. But to keep the math simple, let's say ...
5
votes
1answer
140 views

Selling my house and have been taking home office deduction. What will I owe?

I'm in the process of selling my house. I took a home office deduction a couple times, and I am concerned about what I may be responsible for at tax time. My profit from selling the house is nowhere ...