Entries Tagged ‘deduction’:

Deducting Retirement Community Entrance Fees

Some retirement communities that offer continuing care charge a material entrance fee in exchange for the facility’s promise to provide lifetime living accommodations and care including medical care.  The fee is usually structured as either a lump-sum payment or paid on a monthly basis.  The retirement community can usually provide you with an estimate of [...]

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Let’s Play the Matching Game

My kids were always skilled at matching games…you know, those games where there are grids of cards with cartoon characters turned upside down and you need to match up the two hidden pictures of the same character.  Well, the IRS and Treasury have a game that works somewhat the same way.  Payors to service providers [...]

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401k Contribution Deadline for Small Business Owners

When the Department of Labor (DOL) has jurisdictional authority over a 401(k) plan, salary deferrals should be separated from the employer’s assets and deposited in trust as soon as administratively feasible.  For plans with fewer than 100 participants, the DOL has proposed a safe harbor deposit deadline of seven days from the date of deferral.  [...]

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The DPAD Goes to the Next Level

For years starting in 2010, the domestic production activity deduction (DPAD) increases to 9% from its current level of 6%. Also, the deduction is being scrutinized more closely by the IRS Large & Mid-Size Business Division. These facts give companies extra incentive to be aware of what activities qualify for the deduction and to keep [...]

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Repair or Improvement?

Repair or improvement?  Current deduction or depreciation deduction over the useful life?
Contrary to popular belief, you cannot determine if an asset can be expensed as a repair solely if the amount is less than $500.  The $500 amount is as close to folk lore as the tax rules can get.  However, unlike many urban legends, [...]

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Excluding Foreign Income

Are you a U.S. citizen or resident alien who works outside of the U.S.?  If so, you may be able to exclude some or all of your income earned in foreign countries.  Moreover, you may be able to exclude or deduct foreign housing costs.
Generally, if you are a U.S. Citizen or resident alien and live [...]

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samk