Can I Deduct?

Newsletters for tax planning

Asked Tuesday, February 28, 2012 by an anonymous user

CPA Answer:

You can also deduct seminars, workshops, software, books, reports, newsletters and publications that provide tax planning and preparation advice and information.
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Dividends

How are liquidating dividends reported and taxed?

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation.
These distributions are, at least in part, one form of a return of capital.
They may be paid in one or more installments.
You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9
When a liquidating dividend occurs, it is considered to be a return of capital and not profit.
If the distribution is more than your basis, you would have to report the difference as a capital gain. If the distribution is less than your basis, you may be able to claim a capital loss.
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Where/How Do I File?

Do I have to report income I did not get a 1099-Misc for?

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

Yes. All income recived by you must be reported on your tax return regardless if you did not receive a 1099-Misc.
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Can I Deduct?

Deduction for the time spent on a job that I did not get paid for

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

You cannot claim a tax deduction for time spent on a job where you did not get paid. All materials used and payroll paid to employees’ on the job will be expensed.
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Can I Deduct?

Value of my time donated to a charity

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

You cannot deduct the value of your time or services rendered to your charitable organization.
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Can I Deduct?

Blood given at a blood bank

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

You cannot deduct the value of blood given at a blood bank.
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Charitable Deductions

Charitable Organizations - Selective Recipient listing

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

A partial list of acknowledged Registered organizations
Churches, temples, synagogues, mosques and other religious organizations.
Public charities such as United Way, Salvation Army, Goodwill Industries, Red Cross, Boys and Girl scouts, Boys and Girl Clubs of America, CARE etc.
War veterans' groups
Nonprofit volunteer fire companies, hospitals and schools.
Public Parks and recreation facilities.
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Charitable Deductions

What are the IRS Publications detailed Charitable Contribution?

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

IRS Publication 526 and 561.
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Charitable Deductions

How much of a deduction can I take for my donated goods?

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

There are valuation guides available to the public to calculate an amount for noncash contributions.
You can go to the Salvation Army website to view their Donated Goods Valuation Guide at www.salvationarmyusa.org
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Charitable Deductions

How much am I allowed to claim as a charitible cash deduction?

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

The answer is, how much did you contribute and how much can you substantiate.
For contributions of $250 or less, a cancelled check or credit card statement is sufficient.
A written acknowledgement from the charity documenting the contribution's amount and date is also acceptable
For contributions of $250 or more, you must have written substantiation from the organization. A cancelled check is not sufficient.
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