The Tax Preparation Blog

Posts Tagged ‘income’

This is a Center for Data Analysis Report On Taxes

Abstract: The Economic Freedom Act, proposed by Representative Jim Jordan, would terminate the ineffective Troubled Assets Relief Program (TARP), and substitute a proven way to stimulate the economy: tax relief—from permanent repeal of the capital gains and death taxes to significant reductions in payroll taxes and the top corporate tax rate.

1040A Federal Income Tax Form for 2010, 2011

Question: Are back taxes (unpaid taxes) transferred through to the new owner with the sale of a property?

We are making an offer to purchase a property that has no liens, but the current owner has admitted to not paying her taxes for the last several years. My question is that when we complete the sale, are we responsible for those taxes that she had not paid, or are we getting the property free and clear of that debt?

Thank you! (FYI: We are in California if that matters)

Answer: The taxes have to be paid before the house can be sold. They can be paid from the sales proceeds.

American Apparel Reports Preliminary Second Quarter 2010 Financial Results

LOS ANGELES—-American Apparel, Inc. , a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel, today announced preliminary financial results for the second quarter ended June 30, 2010.

California Tax Deed Sales.mp4

Question: Should I take a home loan or just pay the entire amount from my savings?

This is a India-specific question and requires a knowledge of the Indian Income-Tax rules (which I lack):
If I am buying an apartment for about 30 Lakhs, is it better for me (financially) to take a home loan for 25 lakhs or just pay the entire amount from my savings (assuming, I’ve that much)? My tax slab is 33.6%. I know Rs.1.5 lakhs in Interest is deductible from taxable income. But, will it offset the extra amount of money that I will end up paying during the entire loan term?
Basically, I’m looking for some help in how I should go about calculating whether I should opt for a loan or not. This is a question for people who know Indian Income-tax laws.

Answer: I have a very simple advice first:
Don’t take a loan if you have liquid money to pay all that is required to buy anything. This comes with a fine print: if you can invest your money in an instrument that you are sure will return more interest then what you are going to pay for loan, go ahead and take loan.
One more thing: House loans are normally taken for 20 years tenure, and the IT sops may stop in any financial budget. So till the time IT benefits are there you may enjoy tax sops(supposing you take loan), but after that you wouldn’t like pinches of paying EMI + no benefits.
Another thing: Home loan rates are never fixed….even thogh they call them as fixed and floating….and now as every one knows, interest rates are going north. So be careful.
My suggestion: assuming u have all the money. Take a loan for 5 years. Why: You can invest your money for 5 years, and get better or equal returns as u are giving away in home loan repayment. Plus IT act may not change completely in 5 years, and loan rates will also be preety much predictable.
Best luck..

New tax code may moderate rates: FinMin

Taxpayers may get relief in terms of tax rates in the proposed Direct Taxes Code (DTC), which is likely to replace the 50-year-old Income Tax Act from the next fiscal, a key official indicated on Friday.

Bulletin # 1 – Budget 2010: Personal Tax slabs widened, Re 1 petro duty hike Feb. 26 ’10

Give Financial Peace Of Mind This Valentine’s Day

Agency Says Responsibly Handling Money is a Gift to Loved Ones (PRWeb February 08, 2011) Read the full story at http://www.prweb.com/releases/2011/2/prweb8116647.htm

Question: If my india employer in uae pay me salary in uae and claims that income tax is to be deducted for the first,?

182 days of my stay in uae as per income tax rules of india, is he misleading me?

Answer: Yes. To become an NRI, you need to stay away more than 182 days in a financial year. Your employer is correct.

Go through this link given below:

http://moia.gov.in/showinfo1.asp?linkid=240

http://www.cgijeddah.com/cgijed/COMM/NRI%20Corner/Taxation%20NRI.htm

RDU Audio: Peter Dunne on Income Splitting 18/8/10

Peter Dunne, leader of United Future joined us on the show this morning to discuss this whole Income Splitting idea of his. What does it all mean exactly? Will it serve to benefit those on higher incomes? Will it greatly reduce the amount of tax paid overall?

Preparing India Income Tax Return – Part 2