Are contracting fees rewarded to a prime contractor excise deductible?
Question:
Are fees paid to a prime contractor to allow our company to receive a contract underneath one of their existing contracts deductible? For example, we submit a bid to the prime contractor for $120,000 to perform the project. The prime contractor receive this $120,000 from the government for the services we are performing, but just gives us a subcontract for $100,000 to achieve what we have estimated would run $120,000. Is this $20,000 "fee" we are having to foot this prime contractor a business expense and tax deductible?
Thanks,
Answer:
No, reaffirming Bostonianinmo's answer, you may not take off the $20,000 "fee" you "pay" the primary contractor.
Here is the reasoning...
If you declare $120,000 (not $100,000) of gross revenue and, later, deduct the $20,000, it will still result contained by a net subcontract of $100,000.
In effect, you already deduct the $20,000 by declaring the less significant amount (120,000 - 20,000), and you may not deduct the $20,000, a second time.
More simply, and surrounded by practice, you will just stress the gross amount that you receive for the subcontract, or $100,000.
Phil
http://www.phillipfostercpa.com/accounti...
No, but you only received $100k, so that's adjectives the income that you report. The net effect is like peas in a pod.
You would only report what you are remunerated, $100,000
If you bid $120,000 on the project, why are you only getting remunerated $100,000? The general contractor is hiring YOU and I don't know why you are paying a "fee." They should be mark up your price in their bid to receive a profit on the job.
I want to complain in the region of local I.T.O. directly to nouns minister chidambaram.big-heartedly inform how?
Question:
Answer:
http://finmin.nic.in/the_ministry/financ...
Go to this Page. Get Finance Minister's Phone Numbers. Speak to him or send a Fax.
I do not know whether you can complain just about local ITO directly to Finance Minister, but in adjectives the Income Tax Offices, you will find a board containing the contact persons to whom you can complain.
simply collect the phone no. or e mails or postal address and shot your complain
Write to Commissioner of IT / CBDT.
Your ITO may want to complain nearly you directly to police.
You can write a letter to FM, South Block, New Delhi. He is not busy in a minute a days. Budget is over.
First fo all own you registered ur complaint.
If you would have mentioned the character of your complaint and your location, it would have be more appropriate, may be, for some of us to suggest you some speedier and effective ways and medium.
Are home improvements 100% tariff refundable?
Question:
Answer:
Not quite. Home improvements are added to your argument and will reduce your gain on public sale when you eventually sell. They are not deductible on your levy returns and have no rates consequences until you sell.
If your total gain is smaller amount than the exclusion amount -- $250k for Single or $500k for Married Filing Separately -- if you lived in the home for at lowest 2 of the 5 years immediately prior to the public sale the gain is not taxable and the improvements would have no levy consequences at sale time.
At any rate, they will solitary reduce your gain and any import tax due on the gain, if any. They are not "100% tax refundable."
No they are not.
You may receive a excise credit if you make spot on energy positive improvements to your home. See your last income levy book for which credits the IRS allow for.
If you do make leading improvements to your home you may be able to tag on it to your tax idea so you will pay smaller amount taxes on your house when you sell it.
Only if you can proof that the improvements are prerequisite to enhance energies or utilities savings.
No. The one and only improvements that give a credit on the current year's taxes are those that qualify for the residential vitality credit, and the credit isn't the full amount of what you spent.
Any other inprovements can be added to the cost basis of your home, and will cut back your capital gain taxes when you sell it if you owe any.
How to work out days held when working out how to depreciate an asset beneath taxation canon.?
Question:
When you are working out the calculation for days held below the prime cost method or the diminishing value method, do you:
a) let just vote you bought a computer on the 1st November 2002 but didn't have it installed primed for use until 1st December 2002
Obviously you would have held the asset for six months (1st July start of income year to Nov 30) but do you count the days as 30days for respectively month when working out days held, or do you actually count up the days surrounded by each of the six months as they really stand close to this:
July - 30 days
Aug 31
sep 30
Oct - 31
Nov - 30
Which would be 153 days (days held) and you would minus that from 365 which would be 212 days which you would put as the figure for days held when working out the days held surrounded by the diminishing value method and the prime cost method.
am I right within assuming you count up the days held in respectively month as they really stand?
Answer:
Here's a guide to depreciating assets for Australian taxes:
http://www.ato.gov.au/businesses/content...
Diminishing value method appears on page 6, prime cost on page 7.
It looks resembling you use actual days. If you were using 30 daytime periods, you'd not verbs about leap year, and you'd own a 360-day year.
In looking at the defnitions (page 33-34), you can't actually switch on depreciating until you start using the asset. How long you hold it before use is irrelavent. The single exception is when an asset requires costs of installation that will be depreciated with the asset. You can switch on depreciating the day the asset is installed and equipped for use.
So by my calculation, for the first year, you bring back 31 days.
Security transaction charge?
Question:
Why STT is excluded from cost of acquisition & added to sale value while calculating income gains. Which sector of which law states this treatment?
Answer:
As per the provisions of Section 48 later proviso of the Income Tax Act, 1961, no deduction shall be allowed contained by computing the income chargeable under the principal "Capital Gains" in respect of the sum remunerated on account of Securities Transaction Tax but while calculating excise on short term property gains within accordance with the provisions of Section 111A STT remunerated shall be given the treatment
SORRY FOR NOT ANSWERING
What helpful of tariff is here surrounded by the US?
Question:
In the UK we get loads of taxes (income rates, council tax, national insurance, etc)
For a important salary within the UK the government take 33% in tariff.
How much is tax surrounded by the US?
Answer:
Federal Income tax: 0% - 35% (10% - 15% of gross wages is typical but low-income workers may hold a negative export tax of up to about 25% of wages, i.e. they clear little or no income tax and win additional assistance from the parliament in the form of a refundable excise credit.)
State Income tax: 0% - 10% depending upon the state. Not adjectives states have an income levy. Those that don't typically have much highly developed sales taxes and property taxes.
Real Property Tax: Varies widely .2% - 3% of importance
Personal Property Tax: Varies widely. .1% - 1% of value. Not adjectives states levy Personal Property Taxes.
State Sales Tax: (Similar to VAT) 0% - 10% Not all states levy Sales Taxes
Those are the taxes most folks contract with on a regular font. Renters don't pay Real Property taxes, but the tariff is figured into the rent by the manager. There are no occupancy taxes or Council Taxes.
There is a far-reaching variety of undetected taxes called Excise Taxes that are deep-seated in the price salaried for the taxed produce. The most well-known of these is on gasoline (petrol) and vary by state from about 35 cents to 55 cents per gallon including the Federal fuel duty. (Petrol over here is less than lb1.50 per gallon, you'll love it!)
Having lived and worked surrounded by the UK and the US, the US tax bite -- as much as most of us approaching to complain about it -- is roughly speaking half of the total excise levy in the UK.
Oh yeah, and speed cams are unlawful in most states! And police radar detectors are LEGAL surrounded by most states! And fixed rate mortgages are the rule -- for the life of the mortgage!
too bloody copious... to answer your first question
There is a sale tax, property export tax, income tax etc. I can't label all the states but heaps have no state income export tax like Texas and Nevada so that help but you may pay more surrounded by property taxes too so they can make up for what other states verbs in. If you want a comparison than the IRS site have a chart according to income so you can compare.
Answer for your 3 questions...
1) There's too copious to name. You hold to be more specific.
2) Basic Salary:
3 main sources of income..
1) Income W2 = Up to 33% depending on your duty bracket.
2) Capital Gain = Up to 33% depending on your tax bracket.
3) Property = Nothing from profits if you know what you're doing.
3) Each state have it's own tax law. I.E. = Alaska and Oregon residents don't pay taxes on purchased merchandise.
There are:
1) Personal Income Tax;
2) Property Tax;
3) Corporate Tax;
4) Sales Tax;
5) Road Tax;
6) Estate Tax;
7) Lottery Tax
How can I avoid council toll? pls see details?
Question:
This isn't as dodgey as it sounds.
I've been a university student for four years (this is my fourth and final year and I finish my studies mid May this year)
As a student I am exempt from council rates but because my studies finish in may and the possession on my student housing doesn't finish until August I am having to payment council tax for the months surrounded by between.
Is there away around this? I own a lot of student debt and no channel to pay this money for council excise.
Answer:
Surely if you are left university but without a job then you will attain the council tax salaried for you or you normally dont hold to pay it adjectives at once, you can pay it stale in installments, have a chat to you local council and give them proposal or phone citizens advice
Filed Tax Form formerly deadline but haven't sent but. What are the consequences?
Question:
My friend is an accountant and she filed my tariff forms before the deadline. Unfortunately, I own to send it myself. I'm a bit of a forgetful, unfortunately, and a disorganized individual. I'm too busy with too several things happening this month alone. Anyhow, I enjoy yet to convey the tax form and I be wondering what will be the consequences of sending out the 1040 and 540 tax forms delayed?
Answer:
From what you say, your friend PREPARED your taxes, she didn't wallet them - filing system actually sending them to the IRS, any electronically or by mail. If they weren't file electronically, and you were supposed to correspondence them and didn't, then they aren't file. Mail them as soon as possible.
On your federal return, if you have a discount coming there won't be any cost except the delay within getting it. If you owe, then nearby will be a penalty.
For state, their might or might not be a cost depending on what state you're in.
As long as you don't owe any taxes, you should be ok.
I know for sure that you want to put it in the messages ASAP. The longer you wait the more they will fine you if you owe money. If you are owed money from the management there is no cost for a late profile. Why didn't she have you sign an e-file waiver so she could electronically submit your taxes? Make sure you do that subsequent year.
Below is from the IRS website. www.irs.gov. Lots of info you should check it out.
Failure to file a return or file late can be costly. If taxes are owed, a deferment in file may result in cost and interest charges that could increase your tax bill by 25 percent or more.
There is no cost for failure to wallet a tax return if a reimbursement is due. But by waiting too long to file, you can lose your reimbursement. In order to receive a repayment, the return must be filed in 3 years of the due date. If you file a return, and then realize you made an error on the return, the deadline for claiming any refund due is three years after the return be filed, or two years after the rates was remunerated, whichever expires later.
Taxpayers who are entitled to the Earned Income Tax Credit must wallet a return to claim the credit even if they are not otherwise required to file. The return must be file within 3 years of the due date within order to receive the credit.
If you are self-employed, you must report returns reporting self-employment income within three years of the due date within order to receive Social Security credits toward your retirement.
http://www.irs.gov/taxtopics/tc653.html...
Here is the intertwine to the IRS website, where you can find the
answer to your cross-question.
good luck & post that thing.
You COMPLETED the forms in the past the deadline. They HAVE NOT been file until they are submitted to the IRS. If you are due a refund, you will not be charged a cost, If you owe, You already owe a late file penalty and are accumulate late costs penalties and interest every hours of daylight. FedEx the forms NOW. Don't keep reading these answers, attain the forms to a FedEx office NOW!
Send it within and stop asking questions almost it. The longer you wait, the worse it is. If they owe you money, you're losing interest. If you owe them money, you'll pay envelope a penalty.
File as soon as possible but even if you owe as long as your outstanding liabilty is smaller amount than 1000 then you can waive the penalty and interest. And a quick make a note of hang on to your return for three years and consequently if they dont catch the penalty and interest the statute of limitations has run out and your definatly fine.
Revenue canada rates help out?
Question:
My question is a two quantity one.
First, if I am providing marketing consulting services to websites in the United States and I live contained by Canada, do I have to collect GST?
Second member, is there something special I hold to do, or declare when I'm getting rewarded in U.S. dollars throughout the year and I live surrounded by Canada? If I'm a sole propriator? Do I just use the 'average exchange rates for 2006? Found here:
http://www.cra-arc.gc.ca/e/pub/tg/rc4152...
Any give support to would be much appreciated
Answer:
Hello,
Services provided to a non-resident are generally Zero Rated. This mechanism that you do not charge the client GST but you are still able to claim the Input Tax Credits on qualify expenses. There are exceptions to the rule, such as if your clients come to Canada to work on projects with you.
From RC4007 - Doing Business In Canada - GST/HST Information for Non-Residents
*****************************
Services
We collectively zero-rate services that are performed within whole or contained by part surrounded by Canada for a non-resident. However, exceptions apply to this general provision for zero-rating services.
Individuals
If you are the receiver of a service and you are an individual, you have to be outside Canada throughout the time the service is anyone performed for the service to be zero-rated. Personal safekeeping, entertainment, restaurant, and lodging services, as well as repair services on a vehicle, rendered while you are within Canada, are not zero-rated.
To determine if you are outside Canada while a service is being perform, we look at the following:
you may be in Canada, but the purpose of your stay may be totally unrelated to the zero-rated service individual performed; and
you may be contained by Canada, and you may retain the services of a registered person who does not charge you for the services provided. This provision does not apply to any subsequent contract between you and the registrant while you are contained by Canada, or to any chargeable fees you pay while you are contained by Canada for reasons related to the production of the service.
*****************************
For the income that you report, do you deposit the US funds into a Canadian dollar bank portrayal? If so, use the actual Cdn value of the deposit as your income. If you retain the funds contained by US dollars, then yes use the average rates.
Cheers!
You do not entail to collect GST as your clients are outside of Canada.However,your income from such clients is taxable in Canada and should be reported surrounded by Canadian Dollars using the average rates provided by Canada Revenue Agency.
Oh of course you collect G.S.T. after adjectives these people are purchasing a service that's base in Canada. You person a sole proprieter, you require to pay Canada for letting you do business. That's the means of access it is my friend. Also if your getting away with not paying consequently why bother giving a ****. The world is a mess right now, the administration obviously wasn't prepared for the internet. Otherwise your grandma would be able to communicate you how to run a business instead of some snot nose system accountant. On the other hand I don`t know you could get an exemption if it so pleases you.
What is a P60U?
Question:
SOMETHING TO DO WITH TAX FORMS
Answer:
it's the end of levy year form your employer has to hand over you. it has your income and deductions on. its resembling a receipt that you salaried your taxes
A P60U is the P60 that you will be issued by the benefits office if you received any taxable employment benefits surrounded by the tax year. I ponder historically the the U stood for "unemployed"
Is it true that you enjoy to rate every twelve months taxes for have a vehicle contained by North Carolina? If true, how much?
Question:
Answer:
Varies by car and by locality.
To the state, you really solitary pay for registration and inspection.
The once a year tax is a property charge collected by the county and municipality in which you live to travel to their county/city budgets (a big chunk of which is school systems).
Because I live contained by a city, I pay city and county taxes on my coup¨¦. For my 2002 Mazda 626 it comes to about $125 a year.
Yes it is true and it depends on the attraction of the car. here is no way to procure out of it as the DMV notifies the Tax department.
I don't income much though about 35 dollars for my 97 ford escort
If you own a license plate for the vehicle in NC, you will discharge taxes based on the convenience of the vehicle. Usually it is KBB value. If you register it inwardly city limits, you could take-home pay city and county taxes.
crazy laws huh? within W.Virginia interracial mariage between a black male and white womanly was legalized contained by the year 2000
Personal Property tax. Its usually matching percentage as your house property tax. Mine is almost .67 per 100 dollar value.
In Massachusetts we phone call it an excise tax. It is usually due contained by February. It is really a personal property tax because it is base on the value of the vehicle.
It is deducatable on your federal Schedule A as personal property tax.
I truly had a client that moved to MA from a state that didn't enjoy this tax and they be upset and said they wouldn't pay it.
I told them if they didn't the state could verbs their registration and their driver's license for not paying.
How long beforehand you can receive credit for sale duty after you've written it past its sell-by date?
Question:
Answer:
You can't write off sale tax. I am guessing you be going to you've written off collection of the money from anything you sold. IF you can claim a credit for sales tariff at all, the rules would swing by state.
I don't understand the examine. What kind of credit, and writing it stale? Please clarify.
If you itemized deductions and deduct sales due instead of state and local income taxes, your total tax on your return would enjoy been decrease.
How long does it thieve to bring a National Insurance # within the UK?
Question:
Answer:
If you were born within the Uk, then when your birth be registered a National Insurance number is allocated to you then.
You are as a rule notified automatically around your 16th birthday what your NI number is.
If you are comming into the UK from in a foreign country, to enable you to work contained by the UK you must have a work receipt. If you have a work licence then you can be assigned a NI no. It usually take about 8 weeks.
Normally they are issued a moment ago before the sixteenth birthday. If you're becoming a citizen I don't know I'm afraid.
if you are becoming a UK citizen- you will hold to do it after you have be here 2 years and sat the oral exam to enable you to stay within the UK, during that time it will all be explained during that interview. If you are a UK resident after phone the tax department and they will sort it out.
Is this a due fraud? am i going to find within trouble?
Question:
i live in PA, work surrounded by new york city. bought a house not long in queens, mostly for investment purposes. i am not using the queens house nonetheless...its in a bleak neighborhood and have no intention of living at hand. if i claim PA as my residence in my taxes, am i going to carry in trouble beside the IRS as i own a closer property to my job?
Answer:
No; you live where on earth you live and you are entitled to own an investment property. AS long as you have a PA dr license and probably voter's registration card, within isn't much room for debate.
If you purchased the property to hold for investment, with no intention to reside within the property, it isn't your residence. That would continue to be your home within PA.
You are legal surrounded by what you are doing, I belive you have to live within your legal residence atleast 6 months. As long as you hold utility bills in your identify, I assume you have cars registered within PA and other ties to prove PA residence. you are ok.
The wording of your question sounds ambivalent ... you don't live in attendance "yet" and you bought the house "mostly" for investment. There are some facts missing.
If you maintain your principal residence within PA, then even if you own a home close your work, and perhaps even stay in that at times, it would not disqualify you from claiming PA residence. There would be no fraud involved as far as the IRS is concerned.
However, the state of NY may try to come after you if you have a story of the Queens house as your residence.
Residence is just that--where you reside. If you reside within PA, then explicitly the answer. Owning a house doesn't change your residence--moving surrounded by does.
No, that has nought to do with any your job or your legitimate residence. The IRS (or anyone else for that matter) does not require you to live in any finicky residence regardless of how many you own or what you do near them.
1. The IRS doesn't care where on earth you live, as long as it is in the USA. They may not guardianship about that any.
2. Form what you say, it sounds similar to you actually live within PA. If that is correct, claiming PA as your residence is TRUE.
No, what you're doing is court, and you won't get contained by trouble for it as long as you do live in PA - if that's where on earth you usually spend your weekends, you're fine claiming PA as your residence.
I owe the IRS around $30,000 and enjoy no money to clear them, what can I do?
Question:
they threatened to put a lien on my assets (which I dont have!)
Answer:
No assets ability super lien on your credit; plan on it sitting there for at lowest 20 years and probably longer.
Need to work out SOME Kind of payment plan next to them.
they can usually set up some kind of a sum plan. check with your accountant (or achieve one if you don't use one). He or she can be a HUGE help when dealing beside the IRS!
You're screwed.
The IRS is good roughly speaking making payment arrangements. Call them and articulate to someone about your problem beforehand they start to garnish your wages.
you enjoy to talk to them and work out a payoff plan or they can garnish your wages (in which covering you'll be totally up a creek) or they can have you arrested and put you within jail
contact a attorney in your nouns. look in the phone book for an attorney that will tender you a free consult and ask what recourse you have
virtuous luck
join the NRA and GOP...
Then start a business that exploits the labor force while producing toxic and/or fatal substances.
Once you've managed adjectives that, you can be forgiven for any past charge debt, and can then verbs to really raping and pillaging the american society....
You say that you don't hold assets... but I do wonder if you understand that they denote they will take your home, your sports car, your personal property of any value (including your TV, ipod, computer, etc.) When the IRS say assets, they don't fool around.
And it's not like taking liquidation where you own some protection -- yes, they CAN and they WILL take unquestionably EVERYTHING you own and sell it at auction to take-home pay your tax debts. Then, if that still doesn't clear your debts they can and will "attach" (or essentially confiscate) your wages until your debt is paid surrounded by full.
HOWEVER, you may still be able to stop this from up if you try to work out a payment plan next to them. If they agree to a payment plan, do NOT miss a fee, though -- because you put yourself right back surrounded by jeopardy for losing everything.
Call them NOW -- don't hesitate, because the longer you linger, the more likely they are to start moving forward near the liens, etc. And once they start down that path, it's awfully difficult to stop.
Good luck.
You should call an IRS resolutions service, its SUPER difficult to take anything done with the IRS by yourself. blieve me, I tried. I have a similiar problem in 2005-2006 and I owed $44K, I call a company called assured levy relief, and they really know their stuff. of late go on their site and telephone them.
I think you should look for a toll service also, as Leonard says above. I looked at that site, its pretty cool... :)
Whatever you do, stay away from wesley d. The political affairs does not approve or certify lenders. His 'answer' is also a REPORTED violation of Yahoo rules.
You are probably eligible for a recompense plan. I agree with the "former IRS drone" that you probably don't know the term 'asset' as the IRS define it. Don't wait for them to find you. Make arrangements very soon.
First, it depends on what part of the process the IRS is within if this is your first you received from them then they haven't assesed it on the other hand get a Lawyer to look into it if you own any room to negoiate on why you owe them that then try to settle contained by appeals. On average the IRS will settle in appeals on just about $.50 on the dollar litigation is expensive even for them. Also if you think you hold a case and you hold not let your 90 afternoon letter elaspe next you can file surrounded by tax court which method you dont have to rate the tax until after the court decide could give you a bit time to find the cash. And if the 90 note has elasped your pretty much going to own to pay and later if you think that you are due the some of it final sue for a refund. They will probably work out a contribution plan if you are going to owe the money but they will charge interest. If it possible I would get a loan and settle it off or depending on how smartly you think you can settle up it off a credit card near low interest. The earlier you consult a legal representative the better your chances are at reducing the liability.