The Tax Questions Blog

Archive for May, 2008

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Question: Is the per dium earned outside India taxable?

I am a permanent resident on India and earn an Indian salary and pay a tax on it.Currently I am in Canada on temporary work permit and get a per dium down in Canada.Is my entire per dium taxable in India or will the amount that I save from my per dium and bring back to India taxable?If taxable,how can I avoid from paying tax and the rate of tax that I have to pay?

Answer: Generally, No

(the devil is in the details...any limits on your per diem over which it is taxable etc.)

(2/27/2007):

Contrary to the other answer here, Per Diem is NOT income as long as it is within limits. It is provided towards your travel, lodging and food expenses.

Singapore - Another Hong Kong?

IMPORTANT WARNING: The contents of this report have been compiled in good faith by Investorsoffshore.com to provide assistance to investors, but do not constitute investment advice or recommendations.

Question: A bond interest at 7% p/yr. Intrst is tax at 28%. What intrst rate wld a nontaxble bond need to pay --cont?

-cont'- to yield the same after tax income as the taxable bond?

Answer: equivalent non-taxable interest rate = (100 - 28)% of 7%

= 72% of 7%

ans : 5.04%
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note :
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the ans. is valid only for a 1 year bond
the equivalent interest rate will vary with the # of years

The Bond Book, Third Edition: Everything Investors Need to Know About Treasuries, Municipals, GNMAs, Corporates, Zeros, Bond Funds, Money Market Funds, and More $16.89 Everything on Treasuries, munis, bond funds, and more! The bond buyer’s answer book—updated for the new economy “As in the first two editions, this third edition of The Bond Book continues to be the ideal reference for the individual investor. It has all the necessary details, well explained and illustrated without excessive mathematics. In addition to providing this essential content, it is...

The Fundamentals of Municipal Bonds, 5th Edition $24.90 Praise for the Classic Guide to the Bond Market"This is simply the most comprehensive, useful look-it-up book on municipal bonds I've ever read (said with all due respect to The ABC of Municipal Bonds my dad wrote in 1937 when I was nine). Read Fundamentals cover to cover. I'm keeping mine in my briefcase, under my arm, at my fingertips. No accountant, financial advisor, attorney, new bond salesma...

The Bond Book: Everything Investors Need to Know About Treasuries, Municipals, GNMAs, Corporates, Zeros, Bond Funds, Money Market Funds, and More $4.25 In today’s volatile financial environment, growing numbers of investors are looking to flee the stock market in search of safer ground. While the bond market has often been a “safe haven,” confusing new bonds and bond funds make it increasingly difficult for unfamiliar investors to choose the correct fixed income investments. The Bond Book provides investors with the information and tools th...

Bonds can cut portfolio's volatility while generating income

TROY OXFORD/DMNWhen people talk about investment tips, they focus on stocks. Few consumers ask me which hot bond to buy. Bonds are a very different animal from stocks, but they can - and should - have a place in your investment portfolio.

High Credit Score, Wealth Enhancement & Intelligent Indexing

Question: How do I figure the cost basis for my sold stocks?

I am trying to figure out capital loss for tax purposes. We originally had AT&T stock, then all of a sudden we had AT&T, Comcast, and Verizon stock. Do I only need to determine the stock price on the day the stocks were acquired for each company? Should I go to bigcharts.com and see what the stock price was on the purchase date, multiply it by the # shares, and that would be my cost basis? I've heard that your # shares can change from what it originally was. Thanks!

Answer: Your cost basis starts with the cost in the confirmation that the broker sent you. If there is a spin-off, the company sent you a letter telling you how to divide the cost between the resulting issues. If you lost these, then look on the web sites of the companies involved. Many companies keep copies of this information on their corporate web site under invester relations.

The Tax-Free Exchange Loophole: How Real Estate Investors Can Profit from the 1031 Exchange $4.09 Discover the Greatest Investment Tool of All Time!The tax breaks and loopholes built into real estate make it one of the most profitable investments in the world. In fact, the real estate tax exchange loophole--known as the 1031 Exchange--is one of the greatest tax loopholes in existence. This loophole allows a real estate investor to sell a property without paying a penny in capital gains tax--as...

The Art of M&A Due Diligence, Second Edition: Navigating Critical Steps and Uncovering Crucial Data $29.65 The most trusted M&A guidebook available--updated for today's extreme-risk world of business. Major financial scandals, geopolitical upheaval, technological advances, rapid globalization . . . The world--and the way business is done--has changed drastically in the 10 short years since the original publication of this book. As a result, the already tedious M&A process has become exponentially more ...

McCaulay's Series 65 Practice Exams and Study Guide for the Uniform Investment Adviser Law Examination $55.47 This book will help investment professionals pass the Uniform Investment Adviser Law Examination. McCaulay's Series 65 contains twelve practice exams and a study guide. The sample questions are the type that are most likely to appear on the Series 65 test and are in the same format as those on the exam. The questions are straightforward multiple choice questions with four choices and one best an...

An American World of War: What to Watch for in 2010

by Tom Engelhardt & Nick Turse Common Dreams.org International Posted by Bulatlat.com According to the Chinese calendar, 2010 is the Year of the Tiger. We don’t name our years, but if we did, this one might prospectively be called the Year of the Assassin. We, of course, think of ourselves as something like the peaceable kingdom. [...]

2009 LPL PLAZA 6 CLASSIC feat. Tax Reporting & Cost Basis

IRS Form 1099 Reporting: What You Need To Know This manual will take out the confusion of Form 1099. Readerss will have a thorough knowledge and understanding of form series and compliance, and will know what the California 1099 reporting requirements are....

IRS Form 1099 Reporting: What You Need To Know in California This manual will take out the confusion of Form 1099. Readers will have a thorough knowledge and understanding of form series and compliance, and will know what the California 1099 reporting requirements are....

No Cash? No Problem!: Learn How To Get Everything You Want in Business and Life, Without Using Cash $11.45 Can this really be true? Can you really get what you want in life without using cash? The answer is yes, and it is done every day. In this ground-breaking book you will learn how governments, businesses, and even individuals have all been using the ancient practice of Barter to their benefit for centuries. Barter today is no longer about a Farmer trading chickens for a Doctors time. It has evolve...

TaxWatch: Tax moves to make in January

The tax laws are still in flux. We’re waiting for the estate-tax law to be written, and Form 5405 for the home-buyer’s credit isn’t ready yet. To top it off, IRS started the year by announcing a major step-up in enforcement of tax preparers. This is going to be an interesting tax season. Are you ready?

1099c, Form 982 & IRS Publication 4681, Explained in Hemet

Question: Can I claim a donated website as a tax deductible donation?

I am a web designer and I donated a website to a non-profit organization. Normally I would invoice a client for $800 for this website, but like I said, it was donated so I didn't receive a dime. Is there a way to write this off as a tax deductible donation? What kind of documentation would I need to provide?

Answer: Normally not! It would appear that you did not have any out of pocket expense and only donated your time. If that is the case there is no deduction allowed.

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Ten Tips For Deducting Your 'Hobby'

Here's how to keep Uncle Sam from claiming your small side business is really a hobby.

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