The Tax Preparation Blog

Posts Tagged ‘economy’

Question: Upcoming tax time…..?

I bought a home in Wyoming in August, then left my job in California (never owned a home in California) and moved to Wyoming. I also took the lump sum on my 401K, but did pay 7% in taxes on the lump sum distribution. I am now working out here. I realize my taxes are going to be a mess, anything special Ishould know -extra deductions, special taxes?

Answer: If they only withheld 7% on the 401K distribution, that won’t come close to covering it. Usually they withhold 20%, and often that isn’t even enough. You’ll owe income tax on it at whatever your tax rate is, plus a 10% penalty for early withdrawal if you are under age 59-1/2.

Valley officials wary if pot proposition passes

Many California voters are high on a ballot initiative that would legalize recreational use of marijuana.

Beer Lobby Gives $10000 To “No On Proposition 19″

Question: California is broke so the voters voted against a tax increase so as to be able to pay it debts?

so why would the voters do that ….oh wait a minute California is a “hot bed” of Obama supporters so that means that they know he will come to rescue with USA taxers money and bail them out that why and New York and New Jersey are next to take all the taxpayers money and bail the states out due to having ignorant, stupid liberal policies that cannot be paid for just as the Socialist are doing Washington. If these policies are so great why not let the DNC, Soros and Buffet support them and not the American taxpayer who will no benefit from the states involved.

Answer: We can’t afford more taxes! The increased taxes make revenues go down. The weasels in Sacramento have cut spending. We are tapped out!

Let CA go bankrupt! They need to re-negotiate union contracts and start over.

California city approves pot factories

San Francisco – The California city of Oakland, just east of San Francisco, has approved the establishment of four massive marijuana cultivation facilities ahead of a statewide vote in November on whether to legalize the popular drug.

Harmer on Tax Policy

Question: I have a house in Mumbai. But I stay in Hyderabad for job. Can I claim tax deduction for mumbai house?

I have a house in mumbai . I stay in a rented house in hyd ( for job).
. Can anyone explain what is the meaning of self occupied. Need that says i needs to stay in mumbai , or my dependents stay in mumbai or should I keep vaccant.
Right now I do not have any income from there and my family stays there.
Can any one explain if can i claim both HRA and Home loan tax deductions as per india tax laws.

Answer: Self occupied means not rented out. If your family is residing in the Mumbai house or if it is vacant then it means self occupied.

If you are receiving HRA then you can claim exemption on HRA u/s 10(13A). Even if you rent out the Mumbai house, still you can claim exemption on HRA because you stay in a rented house in Hyderabad.

You can also claim benefits u/s 80C & 24(b) on home loan for Mumbai house.

India tackles deficit in budget

India vowed Friday to rein in its gaping public deficit with a new budget that counts on higher tax revenue and sales of stakes in state firms to sustain the government’s flagship social spending.

Д.Медведев.Проблемы инвестиционного климата.02.02.10.Part 1

Question: California sales tax on floor installation?

Hello,

We are having laminate flooring installed next week. The distributor itemized costs on a sheet of paper, all of which appeared reasonable on initial inspection (square footage x unit cost of flooring & sound/barrier combo, labor, trim extras and a total that reflected a sales tax of about 7.75%).

Upon signing the initial agreement and putting down ten percent it was brought to my attention by a colleague that sales tax should not have been assessed on the labor. Given that this would be about a $400 swing in my favor, I thought to look up relevant California tax and contractor laws. I didn’t find anything on-point.

Can someone point me to the relevant statutes that address this matter, for or against?

As an aside, my colleague said all the distributors up and down this street are notorious for charging tax on labor when they shouldn’t. The fact that the costs were not itemized on the signed form could be a red flag to that point.

Thanks for the info.

Answer: The keyword in sales tax is sales. I work for a fireplace installation company and we charge sales tax on all materials. We do not, and cannot charge sales tax on services (i.e. installation).

California budget crisis means program cuts, tax increases or both in 2010

During last summer’s fiscal crisis, Gov. Arnold Schwarzenegger borrowed the title of a film classic to describe California’s budget, saying it contained “the good, the bad and the ugly.

71 Percent Opposed To Tax Funded Abortion

Question: If I’m running an online business in Malaysia do I need to pay taxes on my income?

Answer: no

DOUBLE ENTRIES 16.1

Editorial Welcome to the 1st issue of Double Entries 2010. Just a quick “Happy New Year” as we get back into the swing of things and regular posting of Double Entries each week. We hope you all had a wonderful festive season and wish you all the best in the new decade.

Opportunity Cash Cow system…Just Like Cash Gifting