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Archive for the ‘Deductible Expenses’ Category

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Question: Tax Deduction of moving expense?

I was transferred by company from middle west to west coast June of 2009. I got relocation allowance by check from company with the Tax Withholding. And I hired moving company by myself and paid moving expense out of my pocket. My moving expense is almost covered by the allowance I received from company. So is my moving expense deductible from my tax?

Also I have a rental property and I paid $400 to property manager for advisement to find a tenant. I was told this $400 is not deductible as rental expense. So just wondering is that right? Thanks a lot
Thank you for the repsonses, which are really helpful. There is one more thing to clarify.
In the W2, my company included moving allowance as part of my compensation indicated in W2 form area “1 Wages, tips, other compensation”. Can I take this money as part of my income instead of moving reimbursement? So my flight ticket, moving company cost will be deductible?
Thanks

Answer: Since the company included this in your taxable income you were not reimbursed for the cost of the move. Therefore you can take the Moving Expense Deduction using Form 3903.

Property management fees most certainly ARE a legitimate rental expense. Rental revenues and expenses go on Schedule E. Other legitimate expenses include rental agent commissions, mortgage interest, property taxes, repairs and maintenance, depreciation (buildings only, never land) utilities, cleaning, etc.

Should we let our daughter live rent free in a student house we buy?

Q We are thinking of buying a property to let to students, one of which would be our daughter. Can we let her live rent free, because if we had to give her money so she could pay the rent our own money would effectively be classed as income. What is the most tax efficient way to deal with this while not incurring the interest of the tax man? AG A Yes, you can let your daughter live rent free …

Question: UK tax- is a meal tax deductible?

If I hold a meeting in a restaurant with a client and pay for lunch, can it be tax deductable. Lunch is the only time we can meet and we both need to work through lunch and eat too. What’s the rule here? What about a meeting in the office where we need to work through and get food in – Can this be put down as an expense – Hardly seems like ‘entertainment’!

Answer: Sorry, but any sort of hospitality is counted as entertainment for tax purposes and is not deductible when calculating the taxable profits of a business.

The reason is fairly simple . You do not eat in order to make a profit. The purpose of eating is to keep yourself alive. Paying for the clients meal is in a sense paying to acquire business, but it is specifically exclude as a tax deductible expense by s577 ICTA 1988. This came in during the 1960’s when business entertaining was becoming increasingly lavish. It was difficult to set a limit, so all entertaining was disallowed.

HML Holdings PLC – Final Results

HML Holdings PLC – Final Results

The Ramayana in “Sita Sings the blues”

Question: Just created an LLC. Will incur tax-Deductible Expenses. Do I have to apply for and use a business credit card?

Just created an LLC. Will incur tax-Deductible Expenses. Do I have to apply for and use a business credit card, or can I just continue to use my personal credit card, and then just use my statements from my personal credit card to document my business expenses?

Answer: ~~You don’t have to use a credit card, but you do have to have a business checking account and keep the LLC bookkeeping completely separate from your own. If you use a credit card then you need to apply for one with the LLC name on it.~~

PHX Energy Reports Financial and Operational Results for the Three-Month Period and Year Ended December 31, 2010

CALGARY, ALBERTA– – PHX Energy Services Corp. is pleased to report on its financial and operating results for the three- month period and year ended December 31, 2010.

Day Dreams Farm Cookie Monsters