Posts Tagged ‘questions’
UK Tax – Answering Your Questions
Posted by Tax Tips in UK Tax Questions on February 15th, 2011
The following questions and answers relate to UK tax.
Q. My family has invested in rental properties over a number of years. Some properties are held in my name alone, others are owned jointly with my sister. The properties held with my sister have made losses in the last year. Can I set those losses against the profits made on letting the properties held in my own name?
A. Yes you can. All your UK property interests are treated as one property business. So the net income from your own properties is amalgamated with your share of income and expenses from the jointly held properties, and the total needs to be reported on the property pages of your tax return. The Taxman will not treat jointly held let properties as being a partnership, unless the letting of the property is ancillary to a proper trading business.
Q. I have a holiday cottage that just managed to qualify as furnished holiday lettings as it was let for 70 days in 2010/11. How will it be taxed in 2011/12 and what tax relief will I get for any loss I make on that property?
A. The Government is expected to announce changes to the way profits and losses from furnished holiday lettings are taxed, with effect from 6 April 2011. The proposals include increasing the number of days the property must be let per year from 70 to 140. Unless you manage to let your holiday cottage for the new number of qualifying days (expected to be 140) in 2011/12, it will be taxed just like any other let property. This means any loss you make on the letting can only be carried forward and set against a profit you make from your lettings business in the future.
Q. My company is planning to get a new Freelander car (emissions 185g/km). It will keep the car for three years and then trade it in. What tax allowances will the company get for the cost of the car over those three years?
A. As the vehicle has high emissions the full cost of the car must be allocated to the special rate pool for capital allowances. Currently 10% of the balance of the special rate pool is set against the company’s profits for tax purposes each year. However, from April 2012 only 8% of the balance in the special rate pool will be tax allowable. When the car is traded in after three years the trade-in value will be deducted from the balance on the special rate pool. However, if the company makes a loss on the car that loss cannot be deducted from the company’s profits for the year.
For specific tation advice it is recommended taht you contact a Chartered Accountant such as Accountants Bridgend.
For tax tips and information visit the Accountants Swansea website.
The author does not guarantee the accuracy of any information provided in this article and recommends that you do not take any action, whatsoever, based on the information provided. By the fullest extent permitted by law, the author does not accept any responsibility for any actions you may or may not take based on information contained in this article. This article contains general information and is not a substitute for specific independent professional advice. In addition it is emphasised that much of the information provided in this article is time sensitive and information contained within it may be out of date.
Tax breaks on short sales
Posted by admin in US Tax Questions on August 26th, 2010
www-myoffers.com Suzie Orman talks about tax relief you are entitled to when you sale through a short sale. In the video it is discusses that you do not owe income tax of the loan forgiveness from a primary home bought or improved between the 1st of January 2007 and the 31st of December 2009. She also talks about private mortgage insurance that is paid by those earning under a hundred thousand a year income, this private mortgage insurance is tax deductable. And many more tax breaks are covered. For information on short sales and avoiding foreclosure look at your options at www-myoffers.com
Home Business Tax Deductions
Posted by admin in Tax Deductions For Self Employed on January 9th, 2010
Most people are familiar with the fact that claiming federal tax deductions is one of the best ways for you to lower your tax bill. However, there are yet more ways that a person can take advantage of federal tax deductions that you may probably not be aware of.
If you own your own home-based business then you could be missing out on some of the tax deductions that are offered. Since your goal as the owner of a home-business is to strategize on how to take advantage of these available tax benefits, it would be wise to find out the facts on how to go about it.
Before starting up a home based business, there are a number of considerations that can be taken towards this goal. You should consult a tax accountant or an attorney and try to find out how you can benefit as a sole proprietor from what the state has to offer you in available tax deductions.
One of the most obvious tax benefits you can have as a sole proprietor of your own business is being able to file your own taxes, and in doing so, saving a lot of money that would otherwise be spent hiring an accountant or an external audit to do your tax return on your behalf.
But what about federal tax deductions?
How can you benefit from these?
It is possible to claim a percentage of your expenses by verifying with an accountant or the local tax office exactly what you are allowed to claim. Examples of these include mortgage, rent, internet, telephone, home insurance and a portion of your electricity bill. Some of these expenses can add up to offer you considerable federal tax deductions that can save you and your business a lot of money.
In addition to the examples listed above, you should consider the indirect expenses that you may incur in the process of running your business. These can include such things as meals and entertainment that are directly business related, your home business equipment like your computer and printer as well as the advertising costs you may incur whether it’s online or offline advertising. These are but a few of the federal tax deductions that you should be taking advantage of.
In order for these federal tax deductions to be approved, however, the IRS requires that your business space be reserved exclusively for principal business activities only. It should also be an exclusive space that you use to meet with your clients for business purposes, and also the space that you use for your normal daily business activities such as making and receiving phone calls and doing your book keeping.
Home based businesses can be great tax shelters and the above mentioned expenses can be used by a sole proprietor to legally claim for some federal tax deductions. Please contact a tax accountant or an attorney to inquire exactly what is legally deductible in your area.
Home Based Business: Your Ultimate Tax Shelter
However, even in this situation, the tax deductions are very limited. Your Own Home Based Business Means Tax Deductions. Now consider the situation where you decide to start your own home based business [...]
Some Tips On Creating A Successful Home Business
You need to get the proper training in running your home-based business. You need to familiarize yourself with record keeping, tax deductions, and basic accounting procedures.
Tax Write Offs for the Self Employed…Discover 101 Ways To Reduce your Taxes Legally.
Tax Deductions For Home-Based Business Owners
Running a home-based business entitles you to a number of income tax deductions. In this article, writer Amy Derby offers some exellent income tax advice for home businesses.
Abusive Home-Based Business Tax Schemes
Schemes involving inflated business expenses, deduction of personal expenses and misuse of purported home-based businesses have become prevalent. The IRS has become aware of several abusive tax schemes, which involve taxpayers [...]
How To Deduct Home Office Expenses And Claim Vehicle Deductions
Allowable home office expenses include: Utilities Mortgage interest Property taxes Homeowners and liability insurance Repairs and maintenance Depreciation. These expenses are then allocated based on the percentage of your home used for your home office area. As with the vehicle deduction, how you claim your home office deduction depends on your business or investing activity and the type of entity (or entities) you have [...]
Home Business Tax Deductions -How To Qualify For Tax Deductions
An area of the home must be designated solely for the purpose of conducting business in order to qualify for certain home-based business tax deductions. Exceptions to this rule only apply in daycare facilities and storage of products [...]
Affiliate Disclosure: It is advisable to assume that any mention of a product or service on this website is made because there exist, unless otherwise stated, a material connection between the product or service owners and this website and should you make a purchase of a product or service described here the owner of this website may be compensated. To learn more, please click here.
Home | Contact | About | Privacy Policy | Sitemap