Deductible

With the recent volatility of the markets you may be wondering if any losses you have earned inside your RRSP, RRIF, or other deferred tax account can be used to reduce your overall tax burden.  The short answer is no.  Any gains or losses earned inside an RRSP or other tax deferred accounts are accumulated [...]

Taking a tax deduction for your new iPhone 3G (or other cell phone) and the monthly service bill that accompanies it may be a bit more complicated than you think, even if it is used primarily (or exclusively) for business purposes. (...)

Taxpayer asks: Is a membership to Jenny Craig tax deductible? Taxgirl says: Probably not. I say “probably not” because some weight loss programs are tax deductible, but the rules are very narrow. Programs like Jenny Craig or Weight Watchers are only deductible as a treatment for a specific disease diagnosed by a physician. Now the good news [...]

For 18 years I have been preparing income tax returns for individuals. Unfortunately even as a tax preparer I miss deductions on my client's tax returns but for those who prepare their own returns I am certain these 10 tax deductible items are almost always overlooked.

Man, thank goodness I didn't shell out those 10G's I was planning on sending to Obama! haha .... j/k of course. But seriously, i had no idea you couldn't write them off. I bet you used to be able to, but like always, someone (or a bunch of someones) ruined it for all of us.It's surely not the end of the world, and def. shouldn't be one of the top reasons to donate to a cause, but it did get me thi

This afternoon, an unexpected hail storm blew through town. Seeing as how I was at work and we have uncovered parking, there was little I could do to protect my car (except run through the parking lot in high heels while dodging ice pellets and move my car into the underground parking garage across [...]

Many home improvements are capital improvements. The Capital Improvements are tax deductible according to IRS if the home improvements meet a number of conditions.

Boat Donations to "boats with causes" charity is a best way to give donation. All Charity Boat Donations and any other items donated to charity are 100% tax deductible. That's why donate boats won't cost you anything. This free tax donation includes Trailers, Sail kits, and any electronics such as fish finders, GPS, Radar autopilots and other marine accessories.Any boat donation to Boats with Causes and the With Causes charitable organization is accepted running or non-running (in most cases). Like this one, Boatangel accepts boat donations and sells them on ebay at www.charityboatsales.org for the purpose of creating and distributing charitable donations absolutely free of charge (even free shipping and 100% free towing.) No passing the costs to you!Carangel also offers several of the pos

Thanks to reader Nicolas for providing a gentle nudge to write a post on a private members' bill that was passed last night that would allow Canadians to deduct contributions to RESP plans (Registered Education Savings Plans). The bill (which is not final), proposes that contributions up to $5,000 per year (and up to a lifetime maximum of $50,000) be deductible from the contributor's income.I have not found anything that indicates whether the CESG (Canadian Education Savings Grant) would still be awarded but my guess is that since there is stiff opposition to this bill (from the Conservative Party), the grant would be eliminated. Fingers crossed for both though! :)For an Ontarian in the highest tax bracket, an annual $5,000 contribution to an RESP would yield  $2,320.50 in tax sa

  The Tel Aviv District Court has ruled, in a precedent setting decision, that bribes amounting to $860,000 paid to government officials in a foreign country to promote a deal will not be considered an expense recognized for taxation purposes in Israel. Judge Magen Altuvia said in justifying his decision that, although the bribe was paid overseas and related to overseas activity, nevertheless, "the country's values do not stop at its borders; if bribe payments are allowed as an expense, the Israeli tax paying public becomes a partner in these  foul acts." Details of the company and the country involved were not allowed to be published, in order not to endanger the people concerned. The Tel Aviv District Court declared that even if a bribe is paid overseas, the count

Ontario’s superintendent of financial services should review the use of the verbal threshold for establishing serious and permanent injury and/or the use of a Cdn$30,000 deductible to discourage plaintiffs from pursuing smaller auto negligence claims, according to the summary of findings in the Civil Justice Reform Project. The author of the Civil Justice Reform report, former associate Chief Justice of Ontario Coulter Osborne, released his findings in November 2007. Smaller auto negligence claims represent 21% of the province’s Superior Court of Justice claims, Osborne noted. In his report, Osborne noted Ontario’s Bill 198 amendments to the Insurance Act in 1996, as well as its associated regulations, are intended to minimize smaller auto negligence claims. More, click here.

In our previous article we looked at mortgage interest deductions. Now we go through the details of whether points paid are also deductible or not and if they are, would the full amount of points be deductible in the year they are paid. But let us first start by looking at what are points. Points generally are the charges paid or treated as paid by borrower to get a mortgage. These are also called as loan discount, maximum loan charges, discount points or loan origination fees. A borrower can fully deduct points in the year they are paid if the under mentioned conditions are satisfied. If all these conditions are not met then borrower has to deduct them equally (ratably) over the term of the loan only if certain other requirements are fulfilled (we will look at those requirements in the following sections). Points deduction allowed in the year they are paid if – Paying points is a common business practice in the area where the mortgage was made. Borrower uses cash method of a

Tony asks: I pay for my own health insurance and that alone allows me to meet the 7.5% threshold for deducting medical expenses on my tax return. Now I find out that I'm pre-diabetic, so I've been testing my blood glucose a few times a week. I don't have a doctor's order or prescription. Insurance does not pay and I wouldn't meet the deductible even if it did. Cost of the monitor was minor but

Dan asks: I'm debating if I should start an IRA or not. The problem is that all contributions would not be deductible. As far as I understand this, it means that any capital gains sells would not be taxed until I was ready to withdraw. My question is about withdrawing money from this account. Are the contributions I made post-tax taxed again upon withdrawal or only the earnings? It would make

Dan asks: I'm debating if I should start an IRA or not. The problem is that all contributions would not be deductible. As far as I understand this, it means that any capital gains sells would not be taxed until I was ready to withdraw. My question is about withdrawing money from this account. Are the contributions I made post-tax taxed again upon withdrawal or only the earnings? It would make

Lenders mortgage insurance (LMI), also known as private mortgage insurance (PMI), is insurance payable to a lender that may be required when taking out a mortgage loan. This insurance covers the lender in case the mortgagor (home buyer) is not able to repay the loan, and the lender is not able to recover its costs after foreclosing the loan and selling the mortgaged property. The annual cost of PMI varies between 0.19% and 0.9% of the total loan value, depending on the loan term, loan type and proportion of the total home value that is financed.The LMI may be payable up front, or it may be capitalized onto the loan. This type of insurance is usually only required if the downpayment is less than 20% of the sales price or appraised value (in other words, if the loan-to-value ratio (LTV) is 80% or more). Once the principal is reduced to 80% of value, the LMI is no longer required. This can occur via the principal being paid down, via home value appreciation, or both. If a borrower has les

The secret’s out. Available from here Via

Four Questions One AnswerI have resigned from my job and paid the notice pay to the employer. I had earned Rs. 20,000 (for 2 months for which i worked) and paid back Rs. 5,000 (notice pay). What will be my taxable income : doshichintan@hotmail.comax I changed my job & had to pay some Notice pay for that. How do I treat this in my tax calculation. : vicky3284@sify.comNotice Pay deducted by my previous employer Rs. X Taxed by them. Notice Pay of Rs. X reimbursed by my new employer, Taxed by them. Can I claim relief in ROI as item being taxed without receipt, even though Form 16 includes the same.Your Email : prakashuprakash@rediffmail.comWhether reimbursement of notice pay by an employer to his employee is his(employee) taxable income ? pravinchand.thakur@mundraport.comAll these question are related to central issue "whether any salary or money paid to the company for quitting the job is deductible from salary earned?". I feel that the deduction from the head of salary is allowed u/s 16

A $40 billion tax bill signed in December introduced a long awaited tax break for homeowners - tax-deductibility of private mortgage insurance, also known as PMI. This deduction is only available to homeowners with adjusted gross income less than $110,000 ($55,000 for individuals) and who itemize their deductions. The new PMI deduction will only apply to mortgage insurance contracts issued in 2007. Congress is supposed to evaluate the law at the end of the year for a possible extension. Homebuyers may no longer have to opt for the popular 80/20 or 80/10 loans because PMI is now tax deductible. This tax deductibility makes loans with PMI cheaper than the 80/20 or 80/10 alternatives. Homeowners with PMI will now be able to deduct it from their incomes and pay less in taxes each year. It will be tough to justify going for a 80/10 or 80/20 loan if this law is made permanent. It is best to consult a good tax advisor to determine if a PMI loan is good for you.

Here in Colorado Springs, Monument, and nation wide mortgage insurance has become a tax deduction following certain conditions. Mortgage insurance has been around since the late 1800's, but only now has it been passed by both the House of Representatives and the U.S. Senate as a tax deduction. This will provide more options to potential buyers and will even help bring more buyers to the market. Only buyers who close loans during and after 2007 and make less than $100,000 per year will be eligible to deduct all the mortgage insurance paid for the year. I have heard that the average tax savings will be around $300-$350. Check with your local lender and accountant to see how this could effect you. Ask your lender if this type of loan would work best for you. An experienced lender will be able to find the best loan for your situation. This change is just one of many that can benefit your home buying ambitions.Colorado Real Estate Resources www.danielsteam.com

Homeowners who pay less than 20 percent down must many times pay for private mortgage insurance (PMI), but a law recently passed by Congress makes that cost fully deductible on income taxes starting in 2007. It applies to new loans for households making less than $100,000 per year.The change also applies to mortgage insurance issued in combination with a Federal Housing Administration (FHA) loan. Private mortgage insurance is often required of borrowers who don't have down payments of at least 20 percent, and don't take out a second “piggyback” loan. Government insurance is mostly offered through the to borrowers considered too risky for traditional loans programs, usually first-time home buyers. Military veterans also take it out.“Making the cost of mortgage insurance tax deductible helps those who need it most: low- and moderate-income Americans, primarily first-time home buyers, who are financially responsible but simply don’t have the means to amass a 20 percent down paym

For most folks, commuting mileage is a non-deductible expense -- unless you know the little tax trick I'm about to reveal. The non-deductibility of commuter miles is painfully true for the employee who fights rush hour traffic every day, twice a day, for 5 to 10 hours a week. All that hassle, and what does he have to show for it? Just gas money down the drain, not to mention the wear and tear

Tony asks: I paid $500 to an investment adviser and bought securities that should yield me about $4,800 in tax exempt interest and $1,200 in taxable interest. Do I get to deduct the amount I paid to the investment adviser? My response: Hello Tony! Expenses that are allocable to tax-exempt income are not deductible. You should try to ask your investment adviser to break out the fee between

It appears that there's a local tax preparer who is/was advising taxpayers that they should have cosmetic surgery in order to increase their medical expenses to reduce their taxes. Not only that, this tax preparer is/was also allowing taxpayers to deduct the cost of medical and dental insurance paid with pre-tax income. Neither of these are legitimate deductions. Assuming you can benefit from