...Standard Deduction Amounts for 2010 Note: You may be able to increase your standard deduction if you: - Experienced a net disaster loss - Paid state, local, or excise taxes on the purchase of a new motor vehicle between February 17, 2009 and December 31, 2009. If any of these exceptions apply to you, TurboTax will add the deduction to your standard deduction amount. If your filing status is: Single Your standard deduction is $5,700. If you are 65 or older or blind, you get an additional $1,400. If you are 65 or older and blind, you get an additional $2,800. Married filing jointly Your standard deduction is $11,400. Add $1,100 for each spouse who is 65 or older or blind. You get an additional $2,200 for each spouse who is 65 or older and blind. Married filing separately Your standard deduction is $5,700. If you are 65 or older or blind, you get an additional $1,100. If you are 65 or older and blind, you get an additional $2,200. Head of household Your standard deduction is $8,400. If you are 65 or older or blind, you get an additional $1,400. If you are 65 or older and blind, you get an additional $2,800. Qualifying widow(er) Your standard deduction is $11,400. If you are 65 or older or blind, you get an additional $1,100. If you are 65 or older and blind, you get an additional $2,200. Note: Your deduction is limited if someone else can claim you (or your spouse if married filing jointly) as a dependent. Review the Standard Deduction Worksheet for Dependents in IRS Publication...
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...Ken and Mary Jane Blough have failed to keep records of their itemized deductions. The IRS now is asking for verification of these deductions. The standard deduction for the Blough’s is $11,900. If the amount of their itemized deductions is less than the standard deduction than they should have just taken the standard deduction and this audit would not be necessary. In the Blough’s case the total of their itemized deductions is much more than the standard deduction and therefore they must show verification if they want to itemize. The first deduction they took was in regards to medical expenses of $7,102 which only $1,477 was deductible because of the 7.5% floor of AGI from the taxpayer (Internal Revenue Code Sec. 213). The second deduction they took was taxes of $6,050 which are fully deductible as long as none of them are fees (Internal Revenue Code Sec 164). The third deduction they took was interest of $10,659 which is fully deductible depending on the type of interest that is involved (Internal Revenue Code 163). The last deduction they took was charitable contributions of $2,693 which are fully deductible as long they are donated to a 50% organization (Internal Revenue Code 170). No deduction is allowed for a charitable contribution unless the taxpayer gathers the appropriate documentation and substantiation. Therefore the $1,477 is not deductible. The total amount of their itemized deductions is $19,402. This is an estimate because the research problem does not...
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...Assignment 1 logic application In this paper I will summarize the salient facts of the "guess your card game" and explain my strategy in solving this problem. In doing so, I will respond to each player's comment and apply a strategy of process of elimination and logical deduction to establish new facts and reach conclusions. First when Andy responds "yes" to the question "do you see two or more players whose cards sum the same value," this is revealing. The sum of Belle's cards equal 16 (5+4+7=16). Carols cards sum up to be 12 (2+4+6=12). Since Andy cannot see his own cards he obviously cannot factor his own cards into his conclusion. As a result of this, I can deduce that I must be holding cards that equal either 16 or 12. Next, after Belle draws her question card, "of the five odd numbers, how many different odd numbers do you see?" and proclaims that she see's "all of them." The game contains the numbers 1 through 9. This means that the five odd numbers are 1,3,5,7 and 9. Andy has 1, 5 and 7, Belle has 5,4 and 7 but cannot see her own cards, and Carol has 2,4 and 6. Out of the odd numbers, only Andy has any visible to Belle. Since Andy has 1, 5 and 7, but Belle claims she can see all odd numbers, this must mean I have 3 and 9. 3+9=12 and since I still have one unidentified card to add to my total, and my total equals either 12 or 16 that unidentified card must be a 4. Lastly, Andy knows what numbers he has right away based on the answer to the second question...
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...main issues in this case is whether or not Rex and Agnes Harrell should be able to make deductions in excess of rental income on their beach house. This deduction depends on if the 14-day personal use provision was exceeded. If the 14-day provision was exceeded than income should be limited to rental income as the ISR decided in this case. However, we have determined that the Harrell’s have not violated the 14-day provision and should therefore be allowed deductions for rental expenses exceeding rental income. Facts: • The Harrell’s purchased a beach house to use occasionally for recreational purposes, but also to rent it out. • The house was in need of significant repairs so the couple decided to make the repairs themselves rather than hiring a contractor. Rex had taken advanced courses in woodwork at a local community college and he applied those skills in his maintenance work. • The log maintained by the Harrell’s showed that the couple occupied the house for 38 days and rented it out for 49 days. On 24 of the 38 days occupied, one or both of them were actively working on the beach house. • On the days they were working on the beach house they sometimes still had time for fun with their two teenage children. Some days they would only work 4 to 5 hours and be able to have fun while other days they would work 8 hours and not have time for fun. • The IRS has limited the deductions to rental income on the grounds that the 14-day personal use provision was exceeded. ...
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...price in the course of wholesale trade. In such a situation, the most convenient - convenient form the point of view of the Revenue as well as the assessee - course would be to treat the price at which the goods are sold to the government as the normal price within the meaning of Section 4(1)(a). In fact, the learned Counsel says, that should be the only method. However, if for some reason, the Revenue is not prepared to adopt this course then, he says, the Revenue has to deduct all the aforesaid expenses and not merely the transportation charges as specifically provided by Sub-section (2) of Section 4. Sri Nariman relies upon the holding in Bombay Tyre International that deductions other than those specifically mentioned in Section 4 are permissible in law, depending no doubt upon the character of the deduction claimed. On the other hand, Sri Chandrasekheran, learned Additional Solicitor General, submits that Sub-section (2) of Section 4 does specifically envisage and provide for the situation concerned herein. It provides expressly that where the price of any excisable goods is not known at the place of removal and the value of such goods is determined with reference to the price charged at the time of their delivery from a place other than the place of removal, the transportation charges incurred for transporting the goods from the place of removal to the place of such delivery shall be excluded. submits that it is not the case of Revenue that the sales to the government are...
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...Luis Alberto Zepeda Professor Juan C. Espinosa IDH2003 5 November 2014 Deductive Reasoning: Explaining Broad Points Deductive reasoning is a method of understanding that takes relatively uncertain claims to make an extremely certain claim. In other words, you can take to generally broad ideas and take the common factor between them to come up with a logical statement. Below, I will attempt to use deductive reasoning to support the following two statements: “We should tolerate all beliefs” and “All true claims rely on presuppositions.” The first claim seems relatively absurd when considering that many religious beliefs state something along the lines of “[insert belief here] is true absolutely, and it is the only absolute truth. It should be firmly believed by all, and a follower of this belief should try to enlighten others.” However, if we truly allow all beliefs to be incorporated into this analysis, there is no way to prove the claim as true, since Gödel's Incompleteness Theorem shows that the system is too broad and will collapse on itself. Said Nursi, a famous Islamic activist from Eastern Anatolia, tried to protect and argue his own religious and educational viewpoints by stating that if your belief is true and absolutely true, you have no need to resort to violence because you have the perfect argument to anything with your absolutely true belief. If we use this as a basis of defining true beliefs and make the edit “We should tolerate all [‘true beliefs’],” we can...
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...Tax Deductions for Individuals: Data Analysis Sean Lowry Analyst in Public Finance February 12, 2014 Congressional Research Service 7-5700 www.crs.gov R43012 CRS Report for Congress Prepared for Members and Committees of Congress Itemized Tax Deductions for Individuals: Data Analysis Summary Reforming or limiting itemized tax deductions for individuals has gained the interest of policymakers as one way to increase federal tax revenue, increase the share of taxes paid by higher-income tax filers, simplify the tax code, or reduce incentives that might lead to inefficient economic behavior. However, limits on deductions could cause adverse economic effects or changes in the distributional burden of the federal income tax code. This report is intended to identify who claims itemized deductions, for how much, and for which provisions? This report analyzes data to inform the policy debate about reforming itemized tax deductions for individuals. In 2011, 32% of all tax filers chose to itemize their deductions rather than claim the standard deduction. In addition, the data indicate that both the share of tax filers who itemize their deductions and the amount claimed by each tax filer as adjusted gross income (AGI) increases. AGI is the basic measure of income under the federal income tax and is the income measurement before itemized deductions and personal exemptions are taken into account. Although higherincome tax filers are more likely to itemize their deductions and...
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...The issue in this case is to assess Phillip’s taxable income for the year ended 30 June 2010. According to section 4-15 Income Tax Assessment Act 1997 (ITAA 1997), taxable income equals assessable income (Division 6) minus deductions (Division 8). Assessable Income In order to determine the assessable income, Division 6 of ITAA 1997 would be the relevant legislation and in particular Section 6-1(1) refers assessable income consists of ordinary income and statutory income. - Rental Income Section 6-5(1) defines “assessable income” to include income according to ordinary concepts. In the case of Adelaide Fruit & Produce Exchange Ltd, ordinary income is characterized as exhibiting recurrence and regularity. For Phillip’s case, rent falls under income from property as it exploit the property and considered to be income producing. Whereas Adelaide’s ruling for periodic and regular payment is satisfied by which a tenant contracts to pay the landlord, Phillip, for the use of premises. Hence, rent income of $55 000 is assessable under Section 6-5 ITAA 1997. However, $5 000 rent received on 5 July 2010 is not included since the case is only calculating for year ended 30 June 2010. - Manufacturing of tennis racquets business Section 6-5 ITAA 1997 defines “business” as sustained and regular transactions and transactions done in the course of carrying on a business. This is satisfied by the manufacturing of tennis racquets where it regularly manufacture and...
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...1 The Induction-Deduction Opposition: Ambiguities and Complexities of the Didactic Reality Wilfried Decoo Published in IRAL: International Review of Applied Linguistics, vol. 34, n° 2 (May 1996), 95-118. ("didactic" = pertaining to teaching and learning in a school context) Abstract An analysis of some of the scientific literature reveals that the terms "induction" and "deduction" often point to various concepts. A number of modalities need to be discerned, especially in the realm of "induction". Experimental comparisons of different methodological approaches may also neglect, to some extent, the complexities of what is really taking place in the classroom setting. The purpose of this article is not to take sides in the methodological controversy, but to contribute to a greater awareness of terminology identification and of the tangents, plural forms and crossings between didactic strategies that draw on "induction" or "deduction". Les termes "induction" et "déduction", tels qu'une analyse de la littérature scientifique nous les révèle, renvoient souvent à des concepts différents. Il semble utile de discerner les différentes modalités, en particulier dans le domaine de "l'induction". Les comparaisons expérimentales de différentes approches méthodologiques semblent négliger, du moins en partie, les aspects complexes de la réalité en classe. Cet article ne prend pas position dans la controverse méthodologique, mais désire contribuer à une plus grande prise de conscience d'une part...
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...BTG 3221 Topic #8: General Deductions Section 8-1 of ITAA97 sets out the provisions for the deductions from their assessable income that allow taxpayers to arrive at their taxable income for the year. This section has two positive limbs and two negative limbs: Positive limbs “You can deduct from you assessable income any loss or outgoing to the extent that: (a) It is incurred in gaining or producing your assessable income; or (b) It is necessarily incurred in carrying on a business for the purpose of gaining or producing your assessable income” Where business includes any profession, trade, employment, vocation or calling, but does not include occupation as an employee; and necessarily is taken to mean “clearly appropriate” as it is left to the taxpayer to judge what is necessary. Negative limbs “However, you cannot deduct a loss or outgoing under this section to the extent that: (a) It is a loss our outgoing of a capital nature; or (b) It is a loss or outgoing of a private or domestic nature; or (c) It is incurred in relation to gaining or producing your exempt income or non-assessable non-exempt income (d) A provision of this Act prevents you from deducting it” As there are two distinct limbs, there is a two-step process involved in dealing with the provision. The first it to determine the extent that a loss or outgoing falls between either of the two limbs; the second step is to determine the extent that the loss or outgoing is excluded under...
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...Case: Case Study 3, Trade or Business Deductions Facts: Dee Bater, a calendar year taxpayer, has a very successful law practice. On January 1, 2012 she purchased a country club membership which she uses partly for professional purposes. An analysis of her bills for 2011 shows her use of the club for the year to be as follows: Dinner with husband and family with purchase of drinks for any clients who happen to be present at the club, $240 Golf with present clients which was preceded or followed by a business discussion, $650 Golf with present clients during which some business was discussed, $200 Lunch with prospective clients during which some business was discussed, $470 Personal use of club facilities, $460 Lunch with prospective clients, on days when the Bater family used the club swimming pool, during which some business was discussed, $250 Lunch with present clients in order to discuss business $700 Luncheon with other attorneys to negotiate various matters pertaining to client affairs during which some business was discussed $400 Dinner with client attended by Dee Bater's husband and client's wife during which some business was discussed $200 Parties were given for current and prospective clients. The guest list included 50-100 people and Bater's employees were asked to attend and mingle $4,500 Yearly club dues were $3,000. Issue (1): Are...
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...If you have expenses that qualify as miscellaneous itemized deductions, you can deduct the total amount of those expenses only to the extent that they exceed 2% of your adjusted gross income. There are three types of expenses that are subject to the 2% limit. They are unreimbursed employee expenses, tax preparation fees and other expenses. For an explanation of deductible and nondeductible expenses refer to Publication 529, Miscellaneous Deductions. Certain unreimbursed employee expenses are deductible as miscellaneous itemized deductions on Form 1040, Schedule A. To be deductible, the expense must be: * Paid or incurred in the tax year * For carrying on your trade or business of being an employee, and * Ordinary and necessary You can deduct other expenses subject to the 2% limit that you pay to: * Produce or collect taxable income * Manage, conserve, or maintain property held for producing such income, or * Determine, contest, pay, or claim a refund of any tax http://www.irs.gov/taxtopics/tc508.html For example, you can donate a car to a homeless shelter and receive a miscellaneous itemized tax deduction. Congress enacted Title 26, Section 170 of the US Code which allows taxpayers to deduct the fair market value of property contributions or value of cash gifts to qualified, tax-exempt charities. The government does put a limit on the ceiling amount for a charitable donation to 50% of the taxpayer's AGI. Also, if the fair market value of...
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...trade or business which involves "the performance of services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services" or any trade wherein the "principal asset" is the skill or reputation of its employees. The term "qualified trade or business" also excludes those that involve performance of services related to "investing and investment management, trading, or dealing in securities, partnership interests, or commodities" (U.S.C. §475(c)(2), (e)(2)). QBI Deduction Limitations for Qualified Trade or Business...
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... | |3 |synthesis | |4 |analysis | 1. Alice Axia’s article discussed overlooked tax deductions. It talked about some of the most commonly missed deductions. Whereas her use of statistics seemed to bolster her arguments, it would have been nice to see her elaborate more about the specific deductions missed. She could have talked about what recourse, if any, a filer would have once he or she realized there was an overlooked deduction. She also should have focused more on why the deductions were overlooked, as that would have made the article more effective. 2. Alice Axia informs us of ways in which we can reduce our tax obligations in any given year. Based on studies she cited, there were cases in which some tax filers were unaware of various deductions they were eligible to claim. In some cases, those deductions would have saved the tax filers hundreds or even thousands of dollars. Some of the common missed deductions, according to Alice Axia, were the mortgage deduction, the energy efficiency deduction, and the charitable donation deduction. 3. In “Unclaimed Deductions,” Alice Axia wrote about the most commonly overlooked deductions when filing a 1040 tax return. She provided...
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...Tax deductions are related to the legislative grace and the ability-to-pay concept. 2 Restrictions: 1. Only deductions allowed by the tax law may be subtracted to compute taxable income. Congress allows deductions for the costs of earning income and certain expenditures. 2. A deduction is allowed for an item only if all requirements are satisfied. Business Expense: the expense must have a business purpose that is unrelated to its tax effect. Gross Income: Only the excess of an individual’s capital investement. The deduction for an item may not exceed the cost. Basis: The cost of an asset or an expense. Represents the max amt of an expenditure that can be deducted as a recovery of capital. Trade or business expenses are deducted FOR adjusted gross income (always) Production-of-income expenses are deducted FROM adjusted gross income-Does not apply to Corportations (deduction is reduced by 2% agi. If agi is 40,000 (6%=$800) and exp is $6000, amt of deduction is $5200) Conduit Entity: Investment expenses of individuals & miscellaneous itemized deductions must be reduced by 2% of agi. Most common deductions that must be reported separately -Charitable contributions - Investment interest expense -Investment expense -Section 179 expense -Nondeductible expenses TRADE OR BUSINESS EXPENSES • Sec 162, “ all the ordinary and necessary expenses…including salaries & compensation, traveling expenses (including meals & lodging), and rentals or other payments required)...
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