Personal Taxes
The most frequently asked tax questions related to Personal Taxes
Are there favorable tax deductions for a SUV?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
Yes. The full cost of a heavy SUV (sport utility vehicle) can be deducted if not pre owned and placed in service new and used 100% for business. If the weight is between 6000 and 14000 pounds then there is a $25,000 limit on first year expensing of the vehicle.
Are traffic tickets deductible?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
No. Fines for traffic violations, parking violations are not deductible.
Is the costs of me driving to work deductible?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
No. In general, costs of commuting between your home and workplace are not deductible. Costs for gas for
Artists - Special rules
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
If you meet certain requirements to be identified as a "Performing Artist" you can deduct all of your car expenses as a adjustment to income directly on Form 1040 instead as a itemized deduction on Schedule A. There is a 5 step requirement test that must be answered before a person is identified as a Performing artist.
What is the IRS Publication that deals with Innocent spouse relief ?
Asked Tuesday, February 13, 2001 by an anonymous userCPA Answer:
IRS Publication 971 explains the 3 types of innocent spouse relief available. It describes who may qualify for innocent spouse relief, the separation of liability or equitable relief and how to apply. Go to the IRS website at www.irs.gov.
What is Bond OID accretion ?
Asked Friday, January 26, 2001 by an anonymous userCPA Answer:
The difference between the discounted purchase price and the value at maturity is the return or yield on the bond and is called accretion. A bond's accretion must be calculated annually and this amount must be reported to the IRS as income on Form 1099. OID bonds are generally issued at a low or zero coupon and are issued at a deep discount relative to the bond's par value.
Margin interest - reportable to IRS ?
Asked Friday, January 26, 2001 by an anonymous userCPA Answer:
The IRS does not require brokerage firms to report margin interest on form 1099-INT. Generally, the amount is reported on the statement you receive from your brokerage firm as margin interest paid on the non-reportable section of the Consolidated 1099.
What percentage is the personal income taxes collected to the total federal revenues collected ?
Asked Tuesday, January 16, 2001 by an anonymous userCPA Answer:
Income tax represent .396% or more of the total revenues collected. It is the largest revenue generator for the federal government.
What exactly is an Audit ?
Asked Thursday, January 11, 2001 by an anonymous user
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