Questions tagged [tax-deduction]

To be used for any question related to tax deductions.

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7
votes
1answer
176 views

I purchased a drug in country A, and consumed it in country B; neither A nor B is the US; is that a qualified medical expense from the HSA standpoint?

I am a US citizen. I have an HSA account. I purchased a drug in country A, and consumed it in country B, where neither A nor B is the US. Is that a qualified medical expense from the HSA standpoint? ...
0
votes
1answer
8k views

Income Tax Returns using ITR1 and no TDS2 details available

In ITR1, (Income from Other Sources (Ensure to Fill "Sch TDS2") (AY 2017-18.) My FD interest, and Savings bank interest, (Income from Other Sources) total below Rs:- 1,90,000/- in (AY 2017-18.) Since ...
13
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5answers
5k views

Does the IRS reprieve those who have to commute for work?

Consider someone who for either family or affordability reasons is unable to live in San Francisco, where they make their living. Their daily commute is long. The cost of the commute is nontrivial, ...
1
vote
1answer
269 views

Does the CRA reprieve those who have to commute for work?

Suppose that for some reason (family connections, unaffordability, ...) someone lives in a town a train ride away from one of Canada's expensive cities (Toronto, Vanvouver). He makes most or all of ...
5
votes
1answer
227 views

Selling Gifted Stock - Capital Gains, Gift Tax, AGI/Deductions

My wife and I received a gift of $100k stock from a relative two months ago. Cost basis of the stock was $30k, purchased by that relative 5 years ago. We hope to sell the stock to use for a down ...
0
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3answers
420 views

Is editing wikipedia tax-deductible in the U.S.?

I spend a fair amount of time editing Wikipedia and am wondering if the time I spend is considered a tax-deductible donation in the U.S. Furthermore: If it is, how do I decide the amount of value for ...
3
votes
1answer
78 views

Can the entire cost of a “freemium” service be deducted if the paid service was only needed for business?

Many computer services are available on a freemium model where some service is available for free, and then you can pay more for upgraded service Suppose that I am self-employed in the USA. ...
1
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0answers
62 views

Is the full monetary amount of sub-contracting tax deductible?

At the moment I effectively work for myself, contracting full-time to a single company. I invoice this company $x every month. In the near future, I would like to either hire or sub-contract other ...
1
vote
1answer
130 views

Company requires me to use my personal cell phone to work. Writeoff?

Question for the tax professionals. I work from home, recently my company has implemented MFA (multi-factor authentication) on several internal sites necessary for my job. The MFA app has to be ...
4
votes
1answer
124 views

US - educational tax credit on imputed income for educational expenses?

My wife is employed by a university. Up to a certain monetary amount, she can take classes with no financial or tax impact. (I believe this amount is set by the IRS but that's not at issue here.) ...
2
votes
2answers
263 views

Tax exemption on personal loan interest component in India

I have taken personal loan for my father business and home construction. The land is on my mom's name. My father is cosigner for the loan. Am I eligible for the tax exemption if yes then under which ...
2
votes
1answer
85 views

US Resident with a full-time job for a US company started a contracting job for a UK company in his free time

Background I'm not a US citizen but I've been living and working as a computer engineer in US on a work visa (OPT) for the past ~3 years and previously went to a university in the US as well. Based ...
2
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1answer
100 views

Loss on US leveraged ETF; Don't live in US anymore

I made an investing mistake many (eight?) years ago. Specifically, I invested a very large sum of money in a certain triple leveraged ETF (the asset has not yet been sold, but the value has decreased ...
3
votes
1answer
91 views

Real Cost of Tax deductible item

I'm self employed and I'm curious if there is a way for me to figure out what the "real" cost of an item will be that I will use as a tax deduction. For example, if I want to buy a $800 computer for ...
5
votes
1answer
280 views

Adding spouse to single member LLC to reduce taxes

Suppose husband has a single member LLC, has a SEP IRA, and makes more than enough to max out annual SEP contributions. I'm curious if the wife could be added to the LLC to allow the wife to also ...
2
votes
2answers
519 views

What distinguishes a moving allowance from a “relocation bonus”?

When moving a certain distance for employment (say moving across the country for a new job), one can deduct some of the moving expenses to lower their AGI. This is done by filling out IRS Form 3903, ...
0
votes
1answer
123 views

Investment product that “optimizes taxes”

My advisor is chasing me to buy a product (with 0.44% fees!) that is supposed to "optimize taxes" (in the US). The idea is that for those fees, they will track some index (the S&P500), and try to ...
3
votes
1answer
64 views

Tax rebate for home loan of under construction property

I am living in a rented house. This year (F.Y. 2016-17) I have booked an apartment in the same city for which I will get the possession after 3.5 years. I have opted for CLP and I am paying the EMI ...
1
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3answers
103 views

Is it wise to invest money in NPS in India for tax saving

My 80C section is filled for tax saving. In addition to this, I see that NPS provides 50K more for tax saving. I am planning to go for NPS Tier-1 SBI funds - Government Securities. Does anyone know ...
0
votes
1answer
122 views

Is there an ETF which tracks BSE or NSE among ELSS funds eligible for tax deductions under 80C? [closed]

Is there an ETF which tracks BSE or NSE among ELSS funds eligible for tax deductions under 80C? I see a list of ELSS funds here, but do not see consolidated listing of expense ratios or fund types..
1
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1answer
323 views

Will employer benefit from paying bonus to employee

I work for Company XYZ as consultant, but my work location is at client place as contractor. My employer that is Company XYZ, filed labor (LCA) for 100k, but as I work as contractor my pay depends on ...
9
votes
5answers
5k views

Borrowing money to buy shares for cashflow?

I currently have lots of equity in my house in Sydney. I am holding 2 investment properties that are negative and really draining my cash flow as we have young kids and wife only works part time. I ...
0
votes
1answer
24 views

Clarification on student expenses - To file the tax for the next year

Clarification on student expenses - To file the tax for the next year. I have a full time job as well as going back to Grad school as a Part Time Student. Do i need to collect all my bills such as ...
6
votes
1answer
76 views

Are partial IRA deductions applicable to the first X dollars or a percentage of the full 5.5k?

Consider two married individuals in the following scenario for 2017: Married filing jointly with MAGI = $109,000 Both people are participants in an employee-sponsored plan Both age 35 They both want ...
20
votes
3answers
3k views

Tax benefits of recycling

Today I spent 15 minutes of my time to drop off burnt-out incandescent light bulbs at the only place in town that accepts them. I was charged $1/bulb for helping the planet. The cashier told me to ...
1
vote
1answer
681 views

1040NR-EZ, no Schedule A, did I claim itemized deductions?

I filed the 1040NR-EZ form for the federal return in 2015. On line 11, Itemized deductions, I entered the result of the "Itemized Deductions Worksheet" (just the state taxes that were withheld from my ...
-1
votes
1answer
124 views

How do I minimize my taxes as an IT Employee in India?

I am working as java developer in start-up software company. My monthly salary is 30,000. The company takes my money as tax (1,500/month tax), and 2,000 for a food plus card. How do I get all of the ...
1
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1answer
23 views

Is LIC MF ETF NIFTY 100 deductible under Indian Income tax sec 80C?

Is LIC MF ETF NIFTY 100 deductible under Indian Income tax sec 80C? http://www.incometaxindia.gov.in/Charts%20%20Tables/Deductions.htm lists: ■ Subscription to any units of any approved mutual ...
23
votes
4answers
2k views

Is it worth saving HSA funds until retirement?

I recently discovered that there is no lifetime limit to contributing to an HSA account - provided that you don't contribute more than the limit per year. Assuming that an individual makes a decent ...
0
votes
2answers
83 views

How can i claim moving expense in 1040?

I moved over 200 miles last year to be close to my new working place, using a service found on an online app (Roadie). Can i claim the moving expense in Line 26 in 1040? Do i need to provide to IRS a ...
4
votes
1answer
196 views

Car repair tax deductible?

I live in California and I have a rental house in Washington State. I claim the rental as income and have been paying taxes on it. Last year, I drove from California to Washington State to check on my ...
8
votes
2answers
2k views

Can I take the self employment healthcare deduction if I get my insurance through my employer?

Historically when I had insurance through ACA, I deducted the premiums on the special self employment premiums deduction. Now, I get insurance through my employer but still pay a ton for it. Is that ...
0
votes
0answers
291 views

TurboTax how to enter “Self-employed health insurance deduction” (1040 line 29) for my income from S-corp K-1?

1040 line 7 = $135K wages an employer not related to my S-corp. 1040 line 17 = $90 from my S-corp K-1. 1040 line 29: "Self-employed health insurance deduction" Can I enter my $9300 health insur ...
2
votes
1answer
69 views

Renting from self during out of area remodel project - deductible?

I own a nightly rental that's out-of-area. I was considering moving to that area for a month and renting and living in my own property while I (personally) do an extensive remodel on it. Would those ...
1
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0answers
33 views

Section 179 and Closing LLC

I closed my LLC 2016 (sole, no employees), can I take section 179 tax deductions in the 2016 return? Do I need to recapture my previous section 179 deductions?
2
votes
1answer
89 views

What is S/P in “Tax Deduction S/P”? [closed]

This may be an unusual question, but I have a plugboard labeled "Tax Deduction S/P" for an IBM 402 accounting machine from the 1950s. This must have been used to process records on punched cards to ...
14
votes
4answers
3k views

What home improvements are tax deductible?

Specifically, do odor removal and air duct cleaning count as tax-deductible home improvements?
1
vote
1answer
110 views

What foreign Government Taxes of Home buying process can I use in Itemized Tax Deduction?

I bought a house in India in 2016. In that process I had to pay few different taxes to government. I took a loan as well. Which of these can I show in Itemized deductions? Government Taxes Stamp ...
2
votes
0answers
136 views

Deducting travel costs for summer internship on J-1 visa

I am a full-time PhD student at a university in Germany. To get funding for my PhD studies, I am employed as a research assistant by the university (I have been continuously employed in this position ...
3
votes
2answers
352 views

What tax percentage will I pay on this benefit in kind?

I live and work in the UK I'm confused at the amount of the tax I will have to pay on this benefit in kind. Say I earn £50k, and have a benefit in kind for travel which is £2000 (for a yearly season ...
0
votes
2answers
39 views

Offsetting losses on share sales with annual tax returns in Australia

I currently hold stocks on a company that has lost 50% of its share value from the time I purchased, can I sell this and offset the loss while claiming tax for this financial year. (The shares were ...
1
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0answers
75 views

If I have a home office and report to a main office, what are the travel expense deduction rules?

I have a sales job where I have a home office and I report to a main company office twice per week. My job is to visit potential clients and visit/support existing clients. When I visit the main ...
3
votes
1answer
90 views

Health insurance deductible for self-employed equal to employer tax deduction?

As I understand it, premiums for employer heath plans are taken out of costs so they are inherently tax free. In other words they are not consider "income" for the employee. For a self-employed ...
5
votes
1answer
294 views

Is it common for a one-time windfall to lead to an individual net operating loss in the following year?

Suppose that Alice ordinarily makes $100,000 a year. Then, in Year 1, she wins the lottery and experiences a one-time windfall of $2.4 million, bringing her income for that (single) year up to $2.5 ...
34
votes
8answers
23k views

How can I achieve a 13% U.S. Federal tax rate?

MSNBC just had a segment explaining how Bernie Sanders paid 13% in federal taxes. This year my income changed significantly, and I'm making a little less salary than Sanders's ~$200k. However, unlike ...
1
vote
2answers
248 views

IRA Deduction Worksheet Question 6 Married filing Jointly

I'm trying to understand the questions in this vectorized case of Married filing jointly for the IRA Deduction worksheet. In my case I work and contribute to a 401k, my wife does not so for Question ...
4
votes
1answer
4k views

Deducting business expenses paid for by gift card

Let's say I need to purchase a $1000 computer for my sole propietorship / side business. I can pay $1000 and deduct it on my schedule C, but what if I have the opportunity to pay $800 for a $1000 gift ...
0
votes
1answer
31 views

Clarification on filing Tax for the education expenses?

Last year i spent around $1200 on preparing GRE through Kaplan. Whether that expense can be declared in filing Tax? Second question is, I am from Computer Programming background and going back to ...
3
votes
1answer
168 views

Donations: In need of guidance on filling out a 8283 form

I believe I have this 80% figured out although theres still some grey areas thus far based on researching a variety of tax websites and IRS's official page. My situation is as follows. Donating FIVE ...
0
votes
2answers
79 views

What pretax allowances can only be taken advantage of during payroll deductions?

Is it true that some pretax offerings from full time employment at a company can only be taken advantage of via payroll deduction? Essentially your company shuffles the money about for you as the ...