You want to send $500 to Haiti Relief but don't have the extra money? Do it this way. Have a garage sale, unloading tchotchkes from your attic, and advertise that 100% of the proceeds will go to the worthy cause. If you haul in $490, that sum becomes, in effect, tax free income for your day of labor.
As always, please call (949) 683-8111 or email us at info@southcountycpa.com if you have any questions. We are here to help.
Tuesday, February 22, 2011
Monday, February 14, 2011
Average deductions
OK, so I am told all the time "Just take the average" for any deduction where my client has no idea how much they contributed or spent.
Now remember, just because these are the averages, it doesn't mean you get to deduct them automatically. Also, being below average is no guarantee you won't be audited. The correct amount to deduct is what you paid.
As always, please call (949) 683-8111 or email us at info@southcountycpa.com if you have any questions. We are here to help.
So here are some "average" deductions based on income levels:
Now remember, just because these are the averages, it doesn't mean you get to deduct them automatically. Also, being below average is no guarantee you won't be audited. The correct amount to deduct is what you paid.
As always, please call (949) 683-8111 or email us at info@southcountycpa.com if you have any questions. We are here to help.
So here are some "average" deductions based on income levels:
| Average Itemized Deductions | ||||
| Adjusted Gross Income | Medical Expenses | Taxes | Interest | Charitable Contributions |
| $15,000 to $30,000 | $7,074 | $3,147 | $9,245 | $2,189 |
| $30,000 to $50,000 | $6,153 | $3,830 | $9,055 | $2,189 |
| $50,000 to $100,000 | $7,102 | $6,050 | $10,659 | $2,693 |
| $100,000 to $200,000 | $9,269 | $10,798 | $13,734 | $3,757 |
| $200,000 to $250,000 | $21,554 | $18,164 | $18,570 | $5,895 |
| $250,000 or more | $37,143 | $50,267 | $27,865 | $20,930 |
| *Source: CCH, 2011 | ||||
Wednesday, February 2, 2011
Tax Myth #12 - Home Office Deduction
I use my home for business, so can I write it off?
Maybe. First, you must be self employed. It cannot be deducted as an employee business expense. Second, you must meet or deal with customers or vendors in the regular course of business. And Third, you must use a part of the home exclusively for business.
While this deduction is available, the IRS realizes that it is often misused and will increase the risk of audit by its inclusion. But if you qualify, you can save some bucks taking advantage of it.
As always, please call (949) 683-8111 or email us at info@southcountycpa.com if you have any questions. We are here to help.
Maybe. First, you must be self employed. It cannot be deducted as an employee business expense. Second, you must meet or deal with customers or vendors in the regular course of business. And Third, you must use a part of the home exclusively for business.
While this deduction is available, the IRS realizes that it is often misused and will increase the risk of audit by its inclusion. But if you qualify, you can save some bucks taking advantage of it.
As always, please call (949) 683-8111 or email us at info@southcountycpa.com if you have any questions. We are here to help.
Subscribe to:
Posts (Atom)