The Tax Questions Blog

Archive for February, 2008

Question: Is the income received on maturity of LIC policy in India taxable as per Income Tax rules in India?

If the DD for the above item is dated in March 2008 encashed in April 2008, to which year the income is to be accounted?

Answer: It is not taxable as yet. So it is a tax free receipt.

When there is no question of tax, in which year to credit dose not arise.

31.3.2008 Cr. LIC Policy No.123456 maturity amt. Rs. xxx
Dr. LIC maturity amt A/c. to be received Rs. xxx

10.4.2008 Cr. LIC maturity amt A/c. received Rs.xxx
Dr. Bank A/c..LIC maturity amt. DD No.....Rs.xxx

Beacon Hill Roll Call: Dec. 21-25

There were no roll call votes in the House or Senate last week. Beacon Hill Roll Call this week examines the 2009 salaries and other benefits received by the Bay State’s 160 state representatives.

No one owes taxes

Question: Any idea of what portion of the German pension is taxable in Canada?

Answer: Pretty sure it is not taxable in Canada.
Faced the same situation with French pension and there is tax treaty between France and Canada, so not taxable. But the income have to figure in the income tax report.
Would think same treaty exist with Germany.

Tax-Free Shortage May Repeat Muni Debt Outperforming Treasuries

Dec. 31 (Bloomberg) -- Tax-exempt bonds may return more than Treasuries for a second straight year, paced by the biggest increase in taxable state and local issues as U.S. income tax rates are poised to rise in 2011.

Ed Balls on Labour's pension tax grab

Question: Lived in Denmark all of last year. Must I pay U.S. income tax?

I received my support from the U.S. National Institutes of Health while working in Denmark. It was classified as "taxable grants" rather than normal income. I did not pay income tax in Denmark.
I am a U.S. citizen but lived in Denmark for >350 days in 2007. Can I claim the "foreign earned income exclusion"? Will I have to pay U.S. income tax?

Answer: As a US citizen who made more than $8750 in 2007, you must file.

You were paid by a government agency, so the form 2555 doesn't apply in your situation.

Sacramento-area developer Nehemiah Corp. pushes the nonprofit envelope

Nehemiah Corp. of America may be a nonprofit organization with roots in south Sacramento's Antioch Progressive Baptist Church, but it operates more like a business than a typical charity.

Free Grant Money Online Government Grants That You Never Have To Be Paid Back!

Question: In Texas, can you get the list of homes being put up for auction, for Taxes and in advance pay the back taxes?

I want to buy tax sale property in Texas, before it goes to auction. Can I legally do This? I saw a property that was listed for Taxes THat I really like, but don't have the money to out bid a bankster or realtor. Can I pay the back taxes befoere the auction and get this property?

Answer: Most counties have a list of properties on their website that owe back taxes. Google your county's tax assessor's office and look for a listing of properties. However, they are typically auctioned monthly and you will have to bid against others, but you might call to see if there are other options. Good luck!

Buying a home or making green home improvements? Don't miss out on these tax credits

(ARA) - A wide range of tax law changes over the last year will result in considerable savings for millions of Americans on their 2009 federal tax returns. Homebuyers and homeowners have some of the most to gain from the changes.

foreclosures: how to buy bank homes for sale and tax homes

Question: How much tax would I have to pay on a company car? (taxable P11D benefit)?

I'm currently earning £33,400 basic with an OTE of £44,000.

I'm scared of getting a company car as i don't know how much it would cost me. Let's say I chose a new Mercedes C Class Diesel.

What sort of money are we talking? Will it be over £500 per month or much less...? I haven't got a clue....

Also would I pay insurance etc.?

Thanks very much in advance.

Answer: www.whatcar.com gives taxable benefits for all cars.

Saving Cents: Tax tips for 2009

You can still take some last-minute steps to cut down on your 2009 federal income tax bill.   HOUSTON—There are a few days left in 2009 for those who want to take action to chip away at the amount you owe in 2009 federal taxes. There’s a bit of good news for those who lost their jobs this year. The first $2,400 of your unemployment benefits are not taxable. Plus, job-hunting expenses are ...