Questions tagged [tax-deduction]

To be used for any question related to tax deductions.

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9
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1answer
2k views

Are real estate taxes deductible if I use home for business?

I use home for business - work as a contractor from home, on my home computer, but there is no area for exclusive use - desk and computers are also used for personal purposes. So I do not qualify for ...
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2answers
2k views

Is the Personal Exemption included in the Standard Deduction?

My question is: do the numbers below include the personal exemption? I found this tax data for 2016: Table 2. 2016 Standard Deduction and Personal Exemption (Estimate) Filing Status ...
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4answers
701 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 ...
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2answers
8k views

TurboTax is telling me to open an IRA now, and get a $5K deduction this year, is this a smart thing to do?

I'm 21 years old, and 2009's total itemized deduction for me is $1,908. I'm going with the standard deduction, but next year seems like it has a lot of potential to save if I open up this IRA that ...
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1answer
3k views

Can I deduct a whole-blood donation as a charitable contribution on my taxes?

I've noticed that there are several new companies advertising that they collect blood donations. I asked a friend who is an ER doctor why, and his response was that blood donations are quite valuable, ...
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2answers
6k views

What are the costs to establish an LLC and to maintain it?

What's the average (approximately) cost to open a basic LLC in Florida state or in NY state? (FYI in my case is to buy an house in Miami and rent it. I already have a bank account in the U.S.) What's ...
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3answers
91k 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? ...
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2answers
2k views

Can I deduct work equipment I am not required to purchase by my employer?

I am a software engineer and I find myself more productive and less fatigued with certain equipment: a mechanical keyboard, an IPS monitor and noise-cancelling headphones. My employer does not ...
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1answer
484 views

Moving expenses: dog kennel

I had to kennel my dogs while moving. Is this deductible as a moving expense (temporary storage of household items)?
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2answers
525 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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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 ...
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3answers
7k 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 ...
8
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2answers
491 views

Do I have to list a SSN to take a child exemption?

Do I have to list my child's social security number on my income taxes to take a child exemption? What if my child doesn't have a social security number?
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1answer
1k views

Can I deduct a donation of a car I received as a gift?

In 2006 my parents bought me a used car. In 2017 I donated the car to charity and they report it sold for $575. Can I deduct that $575 from my taxes given that I did not personally pay for the car in ...
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4answers
3k views

Donating books to charity & claiming a deduction on my income tax: How to value the goods?

I have a large number of books. I tried selling them on Amazon, but they don't cost enough to make up for the shipping. I tried selling them at local book stores, but they barely took any of them ...
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3answers
434 views

If I volunteer to give back to my community, is there a monetary amount assigned to my time, to act as an Income Tax Deduction?

Is there a value that can be assigned to my time, i.e. an hourly rate, so that I can be given a receipt to remit to CRA come Income Tax Filing time? I live in Canada.
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2answers
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In the U.K., can I deduct coffee as a business expense if I work from cafés?

I have a U.K. limited company of which I am the sole director and employee. I work from home most days, but I occasionally work at a local coffee shop when I need to get out of the house. Can I claim ...
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2answers
2k views

Can I deduct the cost of licenses for tools/utilities and services come tax time?

I'm employed full-time (not a contractor). I own my own licenses for tools like ReSharper, Beyond Compare, etc. In addition, I pay for various training and learning resources like Safari Books ...
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2answers
17k views

How do you calculate pretax deduction savings?

I am trying to determine how much money I will save by participating in the TransitChek program. The way the program works is I can set aside a certain amount of money from my pay check before taxes ...
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1answer
7k views

Can I use an HSA to pay financed payments for LASIK?

I understand that an HSA can be used for qualified medical expenses, and that LASIK falls under this category. I'm considering getting LASIK done and would like to use my HSA to pay for it. However, ...
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4answers
327 views

What are the IRAs tax deduction limits when contributing to both Traditional and Roth IRAs?

If I fall into the phase-out range for a tax deduction on a Traditional IRA can I contribute to said account up to my tax deduction limits for said accounts then contribute the rest of my $ to a Roth ...
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2answers
540 views

Raised 100k on a gofund.me campaign to teach a hands on electronics repair workshop for the next few years. How do I pay taxes?

I managed to raise 100k on a gofund.me campaign to teach a hands on electronics repair workshop. This amount lets me do workshops at least twice a month for the next 3+ years. Since I received this ...
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1answer
21k views

How do LLC losses affect personal income taxes in the US?

I know that LLCs have the benefit of pass-through taxation in the US and that any profits realized by the LLC are recorded as income by the LLC members, thus increasing their taxable income. What is ...
7
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2answers
4k views

Tax and social security for low income

My friend works part time and made about $7000 in 2019. Some people have been telling them that she should file separately so she had record of taxes reported for herself and she would be able to ...
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2answers
1k views

Confusion about tax bracket?

So until last year, I was least concerned about tax brackets because I was getting money back every year. However, my wife started working this year and sounds like we do owe some money to uncle SAM ...
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862 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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2answers
1k views

Can I deduct two years of IRA contributions in the same tax year?

The 2015 IRA contribution deadline is in April 2016. As such it is possible to contribute $5500 to my 2015 IRA and $5500 to my 2016 IRA during the 2016 calendar year. My question is simply: if I ...
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2answers
1k views

Hiring Foreign Contractors - Is This Tax Deductible?

I have a small start-up business in the US and I'm going through freelance sites like freelancer.com to get some work done. The appeal of this is that the rates for foreign contractors is often less ...
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3answers
568 views

Can I write-off Visual Studio 2010 on my taxes if I want to learn it?

I doubt I can write it off, but I just figured I'd check anyway. What if I took a class in it and needed the software to take the class?
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1answer
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Can I deduct IRA contributions and take the standard deduction?

If I have the standard deduction on my taxes (that is, I don't itemize), can I deduct IRA contributions? If so, would that be for Traditional or Roth IRAs?
7
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1answer
293 views

Are the tolls to school an education tax write off?

My wife is enrolled in a college that the only way for us to get there is via toll roads and a couple of bridges. It costs almost $30 per day. This wasn't an issue last semester because all of her ...
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1answer
1k views

Pay for my parent's PLUS loan - tax implications?

I recently payed off my college loans and now want to pay for the PLUS loans that my parents took out to pay for my education. Does the gift tax apply if I pay the loan provider directly? I'm not ...
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1answer
2k views

Can expenses for attending stockholders meetings be deducted in U.S. income taxes?

I have a few different common stocks holdings from which I receive quarterly dividends. In addition I receive an annual notice of a stockholders meeting and of course the voting proxy. I have often ...
7
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1answer
479 views

Downsides to Salary Sacrifice? (UK)

My company are starting a scheme where I reduce my gross salary by the amount I pay into our pensions. They increase their pension contribution by the same amount, saving us both National Insurance ...
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2answers
1k views

Calculating savings from mortgage interest deduction vs. standard deduction?

I've read just about anything I can find on comparing cash-flow between owning a house versus renting. One new thing popped into my head yesterday, and I can't shake the feeling that it's an obvious ...
7
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1answer
393 views

Can I deduct my individual Health Insurance Premium in Tax

I have a my own LLC and working as self employee for this company. I am working on 1099 for this company. Since there is only 2 employee (including my spouse), I can't take health insurance from my ...
7
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1answer
105 views

Medical expenses tax deductions - billed vs. paid

In the USA, total medical expenses above a threshold may be deducted from taxes. If a medical expense occurs in December and the bill is paid in January, for tax purposes, does this expense occur in ...
7
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2answers
858 views

Is there a way to get more money monthly and not a big tax return, but not owe?

I am about to purchase a house and our realtor told us that most people change their w4 so that they get a bigger paycheck and no tax rfund. My question is complicated (or at least to me). What can we ...
7
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1answer
1k views

Are commissions paid to realtors for finding tenants for my rental property tax deductable as a rental expense?

I used a realtor to find a tenant for my rental home. I paid her a commission of the amount equal to the first months rent. Is this what turbotax means by Commission Expenses "Commissions paid to ...
7
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3answers
17k views

cost basis of donated clothing?

(similar but NOT identical to How can I calculate the value of donated clothing for tax purposes? ) My wife donated several boxes full of old clothing to Goodwill, and calculated the total thrift ...
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1answer
2k views

What are the consequences of being claimed as a dependent in the US?

What are the consequences of being claimed as a dependent (for the dependent that is) in the US?
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3answers
753 views

Is it possible to deduct health insurance premiums from taxes?

I currently have health insurance provided by my employer. My monthly premiums are deducted pre-tax from my salary. I'm considering canceling this health coverage in favor of an individual health ...
7
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1answer
182 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? ...
7
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4answers
15k views

Is “premium tax credit repayment” deductible as health insurance cost for self-employed?

Under the ACA, you estimate your income for the year when signing up for a health insurance plan via the exchange. If you are eligible for a subsidy, it is calculated based on this estimated income, ...
7
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3answers
8k views

How can I calculate the value of donated clothing for tax purposes?

I have many clothing items that I plan on donating to a local charitable/religious organization. I want to include the value of these items as a charitable deduction on my income tax, but I don't know ...
7
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1answer
346 views

Married filing separately - Can I take standard deduction if spouse has zero itemized deductions

I read on IRS website "Your standard deduction is zero and you should itemize any deductions you have if: Your filing status is married filing separately, and your spouse itemizes deductions on his or ...
7
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2answers
156 views

Sold wall map as fundraiser for a 501c3 non-profit. Need to report on tax returns? How?

In my spare time outside of my full time job, I produced a wall map for as a fundraiser for a 501c3-registered non-profit organization. I then sold the maps via FundRazr.com and money from sales was ...
7
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1answer
9k views

My daughter got married last year in late August, can I still claim her part year?

If my 21-yr-old daughter lived at home (and I provided more than half of her support) until her wedding in late August of last year, can't I still claim her as a dependent of some sort?
7
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1answer
201 views

Deducting moving expenses - what about item replaced after being broken in move

During a qualified move that coincided with a job change (an IRS requirement for this particular deduction), an item that was shipped arrived at the new location broken, a replacement was bought. ...
6
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2answers
146 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 ...

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