The Tax Preparation Blog

Posts Tagged ‘web2.0’

Question: Relocation assistance – ordinary income or adjustment to basis?

I received relocation assistance from my employer in 2009. Included in the package was reimbursement on the loss in value of my home that I sold in my original location as well as broker fees, etc. This reimbursement will be included on my W2.

When reporting these items on my 2009 tax return, is it more appropriate to report this as ordinary income (since it is on my W2) or exclude it from ordinary income and bake it into the gain/loss on home sale calculation (adjustment to basis in home, etc.)? If you can provide an example directly from the IRS literature that addresses this, that’s an automatic best answer.

Answer: You may want to check this page at the bottom. They have some info on moving and deductions. Hope this helps!

First Thoughts: Obama’s opening bid

Presidential budgets are more political documents than anything else, and this budget is by someone who wants to win re-election in 2012. Now we wait for the GOP’s counter-offer.

Calculating Income Tax

Few extra days for your taxes

Yes, today is April 15. No, your taxes aren’t due — yet. The deadline for filing federal and state income taxes this year is Monday. The due date was moved because of Emancipation Day, a local holiday in Washington, D.C., that commemorates the day President Abraham Lincoln freed the slaves in the District of Columbia.

Question: Submitting my very first tax claim?

I will be filing my first tax return. I am on Post Graduate work permit at the moment and here is my recent history in Canada

1. Sept 2006 Enrolled for a masters degree
2. Graduated Dec 2007
3. Started Job March 2008
4. Filing taxes

I received my first T4 slip in January for the year 2008. I signed up at Quicktax online and was filling out…. It asked me to whether I wanted to create a student profile. I did and there is a huge tax refund due to my tution fee which is around $30,000. I only received a 2202A form for Jan 2008 – Dec 2008, when I was enrolled in only one course. I did not receive anything for 2006 or 2007 probably because I was not working had no record at CRA.

Can I still ask for the tax refund for my previous years?

Answer: Regardless of whether you have ever filed a tax return, you should have received a T2202A slip for your tuition fees paid in 2006 and 2007. Speak to the someone at the university about getting copies of these, as they will be very valuable to you now that you are earning income.

Once you get the slips, you will need to file tax returns for 2006 and 2007 to report the tuition fees and related education and textbook credits. Assuming that you had no income in these years, you will not be penalized for late filing. The tuition and related credits will then be available for you to claim as tax credits on your 2008 return. Any amounts that you are not able to use in a given year can be carried forward to future years.

Have a look at the CRA pamplet P105 – Students and Income Tax for more information.

http://www.cra-arc.gc.ca/E/pub/tg/p105/README.html

Bank on dividend compounding

Advice for the income investor.

Foreclosures in Canada – CanadaForeclosureList.ca

Question: Sales Tax on a New Car from Oregon but live in California?

I am a California resident if i purchase a new car in Oregon where there is no sales tax do i have to pay a sales tax when i register in California? Isn’t there a law or right against interstate taxes?

Answer: this should help with vehicles never registered in cali.

http://www.dmv.ca.gov/vr/newvehicle.htm

Nissan Leaf, the People’s Electric, Ready to Claim Power

The Nissan Leaf has arrived, bringing with it a new era of all-electric transportation. Now, will the charging infrastructure follow?

California’s median home price down 40%; US Dollar in Trouble; Obama’s electric car

Question: Is there a free online sales tax calculator for ontario canada?

I need one place to input one sum and it automatically calculates the total including tax. I know how to do the math, however I have hundreds of receipts with partial writeoffs. I don’t have the time to go through each one and tap all of the keys it will take to figure out the total after taxes of $1.18, etc. Does anyone know of a free online sales tax calculator for both PST and GST?
I have even asked people for Excel speadsheets with this formula on it and I still can’t get my hands on one. I don’t know how to use excel other then inputting.

Answer: You need to LEARN to use Excel. It’s easy:

Let’s say Ontario’s sales tax is 8%, so your after tax gross is 92% of that.

In Column A1 put your gross receipt, say $100.00; in Column B1 put the tax rate (0.92). In Column C1 put the following formula: =A1*B1. Column C will reflect the $92.00.

Excel is very simple and there are lots of books available. It also comes with a tutorial. Learn to use it and you may save an ENORMOUS amount of time.

Big guns step up GST push for online purchases

HOSTILITIES surrounding the popularity of GST-free retail sales on the internet will be reignited this week.

17 May Baltimore Live ONLINE Tax Lien Auction