Business Tax Deductions, 2012 Tax Deductions » insurance

tax/uni question (multiple choice) please help if you think you may know!?

admin — Mon, 26 Apr 2010 09:34:57 +0000

Joseph incurred a number of expenses in relation to his legal practice and investment

property for the year ended 30 June 2010:

_ He paid 0 on 24 October 2009 to his tax agent to lodge his income tax return for the

2009 income year.

_ He paid 00 in borrowing expenses on 1 February 2010 to his bank for a 12 year loan

to purchase a new rental property that commenced earning income on that day.

_ He paid 50 in insurance premiums on his business premises on 1 May 2010 for

insurance cover to 30 April 2011.

_ He paid 00 for six months supply of stationery to use in his business on 13 June

2010. The stationery was delivered on that day and he had 00 of that stationery on

hand at 30 June 2010.

Assuming that Joseph is not eligible to be a small business entity (SBE) what amount can

Joseph claim as deductions (to the nearest dollar) for the year ended 30 June 2010?

A:91.

B:50.

C:50.

D50.

E:92.

Can a child be claimed as a dependent if he lived with his father for 6 months?

admin — Wed, 07 Apr 2010 06:50:01 +0000

I am helping my uncle prepare his taxes. He has a 16 year old boy that lives with gramma and dad. During the school year he went home to grammas after school, and then to dads for the late afternoon and night, and during the summer evenly spent time with both, pretty much an even 6 months with each. Gramma wants to claim him because she runs a business, and takes him to a large amounts of doctors appointments and gets him on tons of medications with no medical insurance, and if she claims him she gets more deductions. (i personally think if she wants it all for him, she should have to take the fall for the money she decides to spend on it but oh well) Whereas now he mainly lives with his dad, but during 2008, he was 6months with dad 6 months with gramma. The rules say that you can claim a child that has lived with you for over 6 months, so what about a child that lives with both for 6 months each? who gets to claim?

Separating Schedule Cs?

admin — Tue, 06 Apr 2010 08:24:32 +0000

–My wife has a 40/hr office job, plus does independent consulting out of the house in Education.
–I am self-employed, with my own office, plus I work out of the house as a writer.

Thanks to great answers on this board, I’ve about got a handle on how to do my taxes. But wanted to get some verification on my approach, with one follow-up question:

Based on the above, we will both file separate Schedule Cs this year (because we have separate business types), with separate deduction lists for travel and business expenses. We both have an office room in our house, with separate desks, and therefore claim dual home offices, which we separate on floor space (it is a 20×20 room, so we will both claim 10×10 for each) plus I claim my regular downtown office for myself.

My last question: We both share a car for business. What about when inputing items like auto insurance? Do we put 50% of insurance cost on hers, and 50% on mine? Or do we just put 100% on one or the other?

Thanks again!
My tax program seems to separate out a portion as business vs. personal, so it just asks me to put in the total insurance amount, repair amount, etc. So when I’m talking about 50/50 separation, I’m just talking about inputing half of insurance under her Sch C and half under mine.

car allowance taxed?

admin — Tue, 06 Apr 2010 04:22:01 +0000

My husband receives a car allowance with each pay period. He also receives reimbursement for gas and maintenance. But nothing for car insurance. Now it seems the car allowance is taxable income on our W-2 but our H& R Block Tax Provider says it is not being taxed. But when I look at his W2 it shows up on line 1. I’m a little confused??? Can we deduct any of the car allowance off? How do we know if we are getting the full amount in reimbursement compared to the .48 mile reimbursement. Is there a standard way to compare?
Also, is there a depreciation deduction if he is putting a lot of miles on his car for business.
Yes, he keeps a mileage log and records of gas and maintenance reimbursement.

please compute taxable income?

admin — Mon, 05 Apr 2010 10:01:58 +0000

Hi, help me please
Morgan and Maggie are married and have two dependent children. They also fully support Mary’s mother who lives with them and has no income. Their 2006 tax and other related information is as follows:
Total salaries 0,000
Bank account interest income 3,500
Municipal bond interest income 1,500
Value of employer provided medical insurance 3,500
Value of premiums for ,000 of group term life insurance provided by employer 0
Dividend income from ABC stock ,000
Loan from Morgan’s parents ,000
Gift from Morgan’s parents ,000
Gain from the sale of qualified small business stock held more than 5 years ,000
Total itemized deduction ,000
compute Morgan and Maggie’s taxable income

compute Ronda’s Corporation current Earnings and Profit.?

admin — Sat, 03 Apr 2010 20:54:47 +0000

Assume I owned a business:
Ronda’s Crporation,( a calendar year, accrual basis taxpayer) had the following transactions during 2006, its second year of operation.
Taxable Incom-320,000
Federal Income Tax Liability-108,050
Interest Income from tax-exempt payors-4,000
Meals and Entertainment expenses-2,000
Premiums paid on key employee life insurance-2,500
Increase in cash surrender value attributable to life insurance-600
Proceeds from key employee life insurance policy-120,000
Cash surrender value of life insurance-15,000
Excess of capital losses over capital gains-11,000
MACRS deductions-24,000
Straight 179 expense elected during 2005-90,000
Organizational expenses incurred in 2005-12,000
Dividends received from domestic corporations(less than 20% owned)-20,000

I will use the LIFO inventory method and its LIFO recapture amount increased by
9,000 during 2006. I also sold property on installent during 2005.. The property was sold for 30,000 and had as adjusted basis at sale of 22,000. During 2006 , I received a 10,000
Payment on the installment sale. I elected to amoritize its qualified organizational expenses in 2005. Please help me to compute Ronda’s Corporation current Earnings and Profit.

Is "Cash for Clunkers" a good model for "Heathcare Reform"?

admin — Sat, 03 Apr 2010 17:41:26 +0000

Strangely enough…. as poorly thought out and implemented as this program is it actually is a very good concept for healthcare "reform".

This program sets aside a pool of money. American citizens can choose to use this money or not. They can use this money to buy a car of their choice, as long as it meets certain standards.

There is very little government interference in the choice of the consumer or the choice of the automobile dealer. The Consumer can buy the car they want…the dealer is free to advertise it’s merchandise and to offer additional incentives.

Apply this concept to healthcare. The government can offer tax credits to people to pay for insurance. You can get the insurance that you want from the provider you want. The government will then offer up to "X" amount annually in tax credits to pay for it. This will modify your deductions on your W4 so you keep the money in each paycheck. It never goes to the government and forces you to apply for a refund.

To be eligible you need to be enrolled all year…any partial year enrollments are credited on a pro rated basis.

American citizens can choose their providers….companies are free to compete for new business and will likely see a rise in enrollments (driving down prices) as a result.

Of course we will still need to take additional steps to reduce the actual COST of healthcare (tort reform, reduced regulatory costs) but isn’t this is a great start?
Regrugg -
Agreed.

I was using the model as an example. In the healthcare implementation people would keep their OWN money to pay for their insurance.

The principle is that the government allocate the money to be spent in the free market (as ironic as it is to allocate a person their own money)
ej -

It really didn’t fail. It was just overwhelmed and may run out of money. This was a failure of planning and implementation (an Obama Administration trademark)

The healthacre wouldn’t run out of money because it just allows people to keep their own money to be spent on their own needs.

It’s simple in concept

Have we finally found a workable idea for "Healthcare Reform"?

admin — Sat, 03 Apr 2010 13:35:24 +0000

Strangely enough…. as poorly thought out and implemented as the Cash for Clunkers program is it actually is a very good concept for healthcare "reform".

This program sets aside a pool of money. American citizens can choose to use this money or not. They can use this money to buy a car of their choice, as long as it meets certain standards.

There is very little government interference in the choice of the consumer or the choice of the automobile dealer. The consumer can buy the car they want…the dealer is free to advertise its merchandise and to offer additional incentives.

Apply this concept to healthcare, but rather than create a pool of money from other people’s taxes the government can offer tax credits to individuals to pay for insurance. You can get the insurance that you want from the provider you want. The government will then offer up to "X" amount annually in tax credits to pay for it. This will modify your deductions on your W4 so you keep the money in each paycheck. It never goes to the government and thereby you do not need to apply for a refund to benefit from it.

To be eligible you need to be enrolled all year…any partial year enrollments are credited on a pro rated basis.

American citizens can choose their providers….companies are free to compete for new business and will likely see a rise in enrollments (driving down prices) as a result.

Of course we will still need to take additional steps to reduce the actual COST of healthcare (tort reform, reduced regulatory costs) but isn’t this is a great start?
zaza –

I voted for McCain albeit reluctantly. I was more inclined towards Mitt Romney the former Governor of my State.

Retired from Company, now self-employed. Deduct retiree health premium?

admin — Sat, 03 Apr 2010 08:25:04 +0000

Turbo Tax tells me "We don’t see a health insurance deduction in your return for 2009. Since you own a business, you can write off your health insurance premiums as long as you don’t have coverage available through an employer."

We have retiree health insurance through my FORMER employer. Does that count? Do I get a separate write-off for health insurance premiums since I have some self-employment income (which exceeds my premiums), or do I add it on Schedule A to other medical deductions, which must exceed 7.5% of AGI before I get any deduction?
The former employer pays around 45% of the total cost of health coverage (not taxable to me), and I pay the other 55%. I want to know if my out of pocket share is fully deductible, or only on Sch. A when combined with other medical expenses.

question about health insurance through work..?

admin — Sat, 03 Apr 2010 07:16:17 +0000

my boss runs his own business. I know that health insurance is expensive, but was wondering if I could get health insurance through him. Are there any health insurance companies that work with business owners to get benefits for their employees? Could it possibly be a tax write off or deduction if he got me health insurance? I certainly do not make enough money to have insurance on my own, but do not qualify for any help from the gov’t.

Any websites on information about this would be helpful so I could put together a little package to show him. I’d like to ask him about it within the next few weeks. Thanks!!