The Tax Questions Blog

Archive for May, 2008

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%
-----

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

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Taxable bond funds, expenses, and relative returns.: An article from: Journal of Academy of Business and Economics $9.95 This digital document is an article from Journal of Academy of Business and Economics, published by Thomson Gale on January 1, 2007. The length of the article is 8453 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citat...

Electing premium amortization on taxable bonds. (Brief Article): An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA's on March 1, 1994. The length of the article is 713 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle:...

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.

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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.

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

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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.

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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