The Tax Preparation Blog

Archive for April, 2010

Question: Income Tax on Rental Properties in India for NRI?

I m a NRI and have a PAN Card from india ,also has a property which is rented .

Total Rental Income = 3,60,000 Rupees

Home Loan Intrest Payment= 1,40,000 Rupees
House Improvement = 40,000 Rupees
Renting Agent Commision= 15,000 Ruppes

I’m a Female, and this is the only income I have, I dont have any income in India as well as in other country where I m residing.

as per tax bracketts I should be eligible NOT To file taxes for this year.
because for woman your earned income should be more than 1,80,000 rupees.

Can some help me over here.

Thx.

Answer: * Home loan interest is allowed as deduction on Rs.1.4 lakhs

* House improvement is not allowed. Already there is a 30% standard deduction on rent. So Rs,40,000 is not allowed.

* Rental agents commission Rs.15,000 not allowed,

*Your income after disallowing 40,000+15000 is as follows:

3,60,000 is the rental income
1,08,000 Less 30% deduction for repairs and maintenance
———–
2,52,000
1,40,000 Less interest paid on housing loan
———–
1,12,000 Net taxable income. (No tax- below 1.8 lakhs.)
=======

The 30% deduction on rent is allowed even if you do not spend any amount on house repairs.

IT gets expenses report of IPL-2 from SA

The Income Tax department probing alleged irregularities in the funding and bidding of Indian Premier League franchisees has received reports relating to expenses incurred by franchisees in South Africa where the second edition of the T20 tournament took place last year.

Little_PAN_Card_Holder_Of_India

Question: What do I file if I do not receive my 1099?

I worked for a small company last year as contract labor. The owner of that company went MIA and took all the records with him. Therefor, I have no idea how much I made working there (he paid cash sometimes) so I am unsure of what to file on my tax return. Do I file no income or guess at the amount? If I put no income or a small amount can I get in trouble? What if I put no income and he gets audited or something…what are my rights?
Tax professionals please help!
He still has a week to get me my 1099, I just want to know my options because I don’t think he even has my address to send it to me!

Additional Details

1 hour ago
From what I have found out about this man, after the fact, is that he is not very good at taking care of business. I do not think he is even going to file 1099s but I have no way to know for sure.
And when is the deadline for him to send out 1099s?
**Also, yes I should have kept detailed record of the money given t

Answer: Legally you are responsible for reporting all income you made this company. The situation sounds like he is not going to comply with tax code and issue you a 1099. In order for you to be compliant, I would suggest you piece together your records as best you can and determine the total amount paid to you in 2007. The best resource would be your own bank statements. For the cash you may just have to go off of memory or best estimate.

In the future you might want to keep some records when you work for a company like this. This will protect you and help you avoid any kind of negligence penalties.

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Tax Season is Over – Now What?

You can breathe a sigh of relief, the big push towards the April 15th tax deadline is over. Now you’ll spend the next few weeks finishing taxes for clients who filed an extension. Then, after taking a much deserved break for some rest and relaxation, what should you do next?

Tax Deduction Tips & Advice : How to Use Legal Fees as a Tax Deduction

Question: i went to a tax sale in Houston and bought a deed I’m now moving back to California can i give the deed away?

not looking to make money at this time on the deed just dont want to deal with the taxes while relocating to california any ideas.

Answer: You can file a “Quit Claim Deed” and transfer it to another owner. I live in Texas and may be interested. Of course, I don’t want to walk into a liability such as an environmental issue and such. You can email me at my yahoo name plus the yahoo dot com suffix and give me more details. If you could scan and send the actual deed document with the legal description, that would be better too. I’ve a good friend that works with ad valorem stuff in Houston and he could run the traps on it.

Problem Solved!

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Real estate experts assess market outlook

The pendulum continues to swing in real estate.

Property Research for California Tax Deed Auctions

Question: How to buy tax free cigarettes online?

I find out that is possible to buy very cheap cigarettes from europe.

Answer: I use http://constantshop.com for 2 years and always receive orders in time.

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Expanded gambling bill dies in House

The New Hampshire House voted Wednesday to kill a bill that would have allowed six casinos and slot machine facilities to open around the state.

Tax Free Cigarettes/Booze Cheap Gas

Question: Tax Calculation/Diane?

Hi sorry diane, im in ontario. I saw a previous posting you gave with this site but when I calculated it, it showed much more so not sure if I did it right!

Will the 9600 still be the same if we are temporary residents which we are. Have been here 18mths but still dont have landed immigrant status

Not very good on this site either!
Thanks

You didn’t say what province you live in. For your husband’s income, taxes would have ranged from $6315 in Nunavut to $9274 in Quebec.

Here’s a calculator you can use to see how much taxes would be, with NO deductions, for your province:

http://www.ey.com/global/Content.nsf/Can…

He will pay less than that calculator shows because of the dependents, and if you live in a province that offers provincial tax credits for rent or property tax (most don’t). So I think he’s fine.

All of your taxes paid will be returned, because you made less than $960

Answer: minor point to clarify. Think Diane made an innocent typo

The tax credits for your two children apply if they were born after 1990, not 1980.

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Tax advice for newlyweds

DALLAS – It may not be high on the list of wedding plan activities, but there are a few simple steps that can help keep tax issues from interrupting newly-wedded bliss, according he Internal Revenue Service.

Individual Income Tax Estimate for 2009, 2010