Tax FAQ
 

Tax Purposes?

Question by ofe1976 | Posted in United States

Firm Accounting

I know we have to keep receipts from employees personal use but is there a minimum thats required. Is it anything over $75?

Answer: I'm not indubitably sure what the question is. Could you restate it in more detail.
 
 

If I Claim To Be A Real Estate Professional For Tax Purposes, Is My Income Subject To FICA?

Question by capn bob | Posted in United States

I restrict as a real estate professional for tax purposes. I own and manage over 25 rental properties. I have not claimed that significance in the past. I have recently married and my husband has retirement and investment income in surplus of the maximum income amount allowed under the passive activity rules. If I make a profit from my investments, am I rationale to FICA taxes on that income? Is there a downside to claiming real estate official status?

Answer: First, be unfailing you really meet the definition of a real estate professional. See IRS link below. If you don't defray this requirement then claiming to be a RE Professional could be tax evasion.

Beyond that, if the income is rental income, or savings gains, the answer is no. If the income is active income (i.e. commissions, hourly fees) then it may be affair to self-employment (FICA) taxes.

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Am I Able To Write Off Health Insurance Premiums For Tax Purposes At The End Of The Year?

Question by Marcus W | Posted in United States

I am looking to attain my own health insurance instead of going through my company. I know that the company takes out the outlay on a pre-tax basis, but their insurance is not the greatest. If I do decided to sign up for health insurance, will I be superior to use the cost of my own health insurance as a deduction fo tax purposes?

Answer: You may take from qualified medical expenses you pay for yourself, your spouse, and your dependents, including a person you rights as a dependent under a Multiple Support Agreement. You can also deduct medical expenses you paid for someone who would have trained as your dependent for the purpose of taking personal exemptions except that the person did not meet the indelicate income or joint return test.

You deduct medical expenses on Construct 1040, Schedule A (PDF), Itemized Deductions.

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Do I Need To Keep An Original Receipt For Tax Purposes If I Already Scanned And Saved On My Computer?

Question by fsu_orlando | Posted in United States

I donated some tog up and received a receipt for tax purposes. I scanned the receipt and saved on my computer. Is there any need for me to keep the original return or am I ok with the scanned copy? Scanned/saved on my computer allows me to be much more organized.

Answer: The IRS is sensitive that people have computers.

The rules on record keeping have loosened that the IRS will accept the scanned verify images on your bank statement as proof of the check instead of demandinng the indigenous check. They will even take my bank statement that doesn't have an image because the entry includes the epoch paid/cleared, pay to and dollar amount...but these computer entries are acceptable the are on official bank statements.

The unselfishness

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How Are Bonus And Fractional Shares Treated For Income Tax Purposes?

Question by Manoj B | Posted in India

I owned shares in Actors A. The shares were purchased less than a year back. Company A declared a 1:4 bonus cut issue. They announced that that any fractional share entitlement will be aggregated and sold in the sell and the proceeds distributed to shareholders entitled to fractional shares.
I received 6 shares and Rs. 66 for this compensation share issue.

1. I am assuming that the 6 shares will be treated as having a cost of acquiring of Nil for income tax purposes, i.e. if

Answer: 1. Usual
2. No. Exemption rule is related to STT paid on sale not on purchase.
3. Dividend.

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New IRS Guidance – The Small Business Health Care Tax Credit ...

by Butterfly

An head is single for the ascribe if (1) the organization has fewer than 25 full-age close employees (“FTEs”) for the taxable year, (2) the run-of-the-mill annual wage of its employees for the year is less than $50,000 per FTE, and (3) the business... Component 45R of the Internal Interest Jus gentium 'universal law' (“Practices”) offers a tax have faith to specific measly employers including tax-exempt organizations that victual well-being guaranty coverage to their employees. However, a federal or articulate business is not an worthy minuscule firm for purposes of the impute unless it is a portion 501(c) non-profit coordination. Slice 45R was added to the Maxims by split 1421 of the Submissive Bulwark and Affordable Feel interest Act (“Affordable Caution Act”), enacted Walk 23, 2010. In Take heed of 2010-44 recently issued by the IRS, the IRS provides handling on part 45R and what requirements must be met to make the grade for the confidence. Employers Appropriate for the Credit....

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