The Tax Preparation Blog

Archive for the ‘Tax Software’ Category

Question: Is a provision for returned sales tax deductible in Australia?

I have based this on actual estimates of returned sales. If this is tax deductible, what is the justification for doing so?

Answer: No provision is deductible until the event itself actually happens. The same treatment goes for provision in annual leave, provision for bad debt and all other provisions.

Sniffing for market opportunities

izwan@thestar.com.my THE year of the Ox, which ends on Feb 13, has turned out to be a robust period for the global stock market. But after ten months of almost straight gains fuelled by the abund…

E-tax Refund Notification Australian Taxation Office Scam Fraud

Question: Another Income Tax Calculation Question…?

If I have overpaid tax last year, and I am entitled to a rebate this year, where would that fit into my income tax calculation?

I believe for my TAX CODE, my personal allowance calculation would be raised by: rebate * (100/22)

What about my income tax CALCULATION?
I am unsure of whether:
1) my actual personal allowance would increase, meaning that I eventually end up paying less tax by the amound refunded, or…

2)my allowance stays as normal, and the refund is taken off my tax liability to give my final tax payable or…

3)I am totally barking up the wrong tree and something else happens

Answer: your allowance stays the same. if you overpaid tax in previous years get a tax reclaim form from the taxman,complete and return it to him.If you are due a refund he will send you a cheque,
Happy days eh?

Core Lab Reports EPS of $1.25 for Q4 2009, Ex-Items; Annual FCF of $7.06 per Share Sets Record; ROIC Leads Industry …

Core Laboratories N.V. reported fourth quarter 2009 earnings per diluted share of $1.25, excluding $0.13 EPS related to devaluation of assets in Venezuela and other foreign currency exchange losses and $0.12 due to a change in Mexico’s tax laws. Â Fourth quarter 2009 net income was $23,617,000, and revenue totaled $181,599,000, a sequential quarterly increase of 8% and a decrease of less than 10 …

Amos ‘n Andy – The Income Tax Show 3 of 3

Question: Can you make personal Income Tax Estimated Payments all lumped together in the fourth quarter?

Or MUST you pay them in approximately four or more equal payments throughout the year? Would there be a penalty for paying it all at once in the fourth quarter? I am trying to avoid any penalties, and I can certainly pay the taxes right now in January and well before April 15th. This is in regards to federal taxes, but any insight on state taxes would be great too (such as for Massachusetts and Rhode Island).

Thank you for your help.

Answer: The IRS calculates the estimated tax penalty by the date the payment came in.

If you pay the entire amount due on 1/15, the computer will notice that the amount due 4/15/2009 came in 9 months late; the amount due 6/15 came in 7 months late; the amount due 9/15 came in 4 months late and the 1/15 payment was on time.

Yes, you will reduce the penalties by sending money now, but you won’t avoid them if they were due.

Delphi Retirees to Pay Taxes on Pension Payments

Delphi retirees might need to make quarterly estimated tax payments on income they’re beginning to receive from the federal Pension Benefit Guaranty Corp., the Ohio Department of Taxation said last week.

[Federal Housing Tax Credit] How To Use It and Save $$$…”Continued..Part 2

Question: Tax impact of rental loss?

I am considering taking an out-of-state job and need to consider the tax impact of retaining my home (versus selling it). I estimate that I will be able to rent the home for $72K per year, which will be more than my mortgage interest of $66K and taxes of $24K (an annual loss of $18K).

What will be the impact on my taxes in term of tax deductability of interest and/or my ability to deduct the annual net loss of roughly $18K. Also, is depreciation a consideration now that it is considered an investment property (effective 7/1/2008)? My 2008 gross income should be in excess of $200K. Finally, what is the date cut-off for it to be treated as an investment property for tax purposes for the 2008 tax year?
If your answer could also address the tax-deductability of the mortgage interest (as compared to deducting the net loss) and that would be great.

Answer: Your income is too high.
Any loss would be postponed on a form 8582 until the year you sell.

Global High Income Fund Inc. – Distribution Characteristics for January 2010

NEW YORK—-Global High Income Fund Inc. , a non-diversified, closed-end management investment company seeking high current income and secondarily, capital appreciation through investments primarily in securities of emerging market debt issuers, today announced its distribution characteristics for the month of January 2010.

Ron Paul Radio Ad #6 (No IRS, No Income Tax)

Question: Is there a website that has a calculator for federal taxes that we’ll be filing in 2009?

The only ones I seem to be able to find are still from the 2007 taxes.

Will the 2008 taxes be any different? Any new changes?
Ali- the H&R Block website has the 2007 calculator. I tried there first because that’s where I file my taxes.

Answer: No. We won’t know until Obama takes office. Things could change in the Revenue Code and that could be retroactive to 2009 filing for 2008 tax year.

Tax rates will not change though, but different credits and deductions, etc could be modified.

Data: Owe money Search delinquent Wisconsin taxpayers

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