The Tax Questions Blog

Archive for the ‘Non-Taxable Items’ Category

Government hints at tax on perks

A thinly veiled threat to begin taxing billions of dollars worth of assets has been issued.Baches, planes, yachts and salary sacrifices like complimentary laptops, carparks, cars, medical insurance and company credit cards might...

Question: What should be medical bill exemption for 4 months working employee in india?

For a year, medical allowance-non taxable is 15000.
But I worked on;y 4 months in 2009-2010 and resigned.
My employer is saying only 1250*4 will be the non-taxable amount.
I have medical bills for 15000

Can I claim for 15000 or only 1250*4?
Is there any tax-documents which support this

Answer: First you have to understand the difference between medical allowance and medical re-imbursement.

In case of medical allowance, the entire amount received is taxable.
In case of medical expenses re-imbursement, upto Rs.15000 it is not taxable. It is a perquisite.

In the case of medical allowance, there is no need for you to spend the money on medical expenses. Its like a routine breakup of salary.

Medical expense re-imbursement is that which you get when you have spent some expenditure for medical purpose and you make a claim to the employer for re-imbusement of the expense (details of amount spent is necessary in this case).

In your case you have to see whether you make claim for the expenditure or is it a routine allowance. My understand of your case is that you are receiving only medical allowance and therefore it is fully taxable.

Even if you think what you are received is re-imbursement, you cannot claim more than what the employer has paid you . . . If the employer has paid you only 1250*4 you can claim only 1250*4, irrespective of the amount of expenditure incurred.

Planet Payment Announces 2010 Annual Results

LONG BEACH, N.Y. -- Planet Payment, Inc. , a leading international payment and data processor, today announced its results for the year ended December 31, 2010 and quarterly results for the three month period ended December 31, 2010.

Question: Will the recipients of Obama's tax curts be greatful for their gifts of pelf?

IRS tax credits were an offset against an IRS tax liability. If I had a $1000.00 tax liability I could offset it for example, with a $300 credit and pay the net of $700. I could apply the credit until my tax liability was zero.

Obama's cut will increase the existing ability of some people with a zero or other tax liability, to receive a "refund" for thousands of dollars. For example, A person receives only non-taxable welfare benefits throughout the year - they have earned nothing. Under Obama, they can receive a tax "credit" and receive thousands of dollars in cash - money extracted from working people. Will these recipients be greatful to the people who earned the money?

Answer: I always like a gift of pelf. Doesn't everybody?

The Labor Code of the Philippines

PRESIDENTIAL DECREE NO. 442, AS AMENDED. A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE.

Question: If ? were to Invest in someones Idea(s) what would you want to do? ?

I would be interested in a Investment with a good idea and sound Capital gain?
The yes and no are as follows?
No Nightclubs,Liquor licenses,short term investments,stripper club/bar,returnable bonds,NO 501c(3) non profit or pro-bono ideas?
NO SCAMS!!!
Yes, if you have an idea that has a sound capital gain, location location location is very important?
Yes to a trackable investment?
Yes to a Only in the United States?
Yes to precious metals, but not forien exchange?
The bottom line is People all over the USA have excellent ideas and the banks turn them down and sometimes find a way to run with the idea(s) elsewere? Even if you have the worst credit a person can have?
Please keep out the B/S that would only? Well you know?
If you have Capital and still being turned down but would love to get started ASAP?
A BUSINESS PLAN THAT COULD MAKE MILLIONS OR JUST A TAXABLE INCOME? NO DONATIONS OR SPONCERS OR HAND OUTS!!!
HAPPY NEW YEAR

Answer: what's up with all the ranting?

maybe if you ask a question rather than making declarative statements and putting a question mark at the end, people might be able to help you.

do you just not know the language? if so, there are plenty of boards in other languages. you might want to try asking a question over there.

The effect of risk-aversion on the portfolio allocation between taxable bonds and non-taxable bonds of the same risk.: An article from: American Economist $5.95 This digital document is an article from American Economist, published by Omicron Delta Epsilon on September 22, 1997. The length of the article is 4317 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 DetailsTit...

Fitch Rates Energy Northwest, WA Elec Rev Bonds (Bonneville Pwr Admin) 'AA'; Outlook Stable

Fitch Ratings has assigned the following ratings for bonds issued by Energy Northwest and secured by payments from the Bonneville Power Administration:

RRSP vs Unregistered investments

Question: Can Hank Paulson avoid tax on $600MM unrealized capital gain upon becoming a government employee?

A tax expert told me the following:
"Hank Paulson, the incoming Secretary of the Treasury, with a personal fortune of USD 700,000,000 has the right to benefit from a brand new tax exemption available only to those in government which is the right to sell all of his USD 700,000,000 of holdings and swap them into index funds or treasury bonds, and pay zero, that's right, zero tax on his USD 600,000,000 of profits.

I take it the gist of it is:
- New rule exempts government employees from tax on any capital gains realized upon the sale of treasuries.
- Paulson has $700MM of Goldman stock, with $100MM basis.
- Paulson could trade his Goldman stock for Treasury securities, and that exchange of securities would be a non-taxable event, so the basis of the treasuries would be $100MM.
- Paulson could then sell the Treasuries for $700MM, but as a federal employee be exempted from tax on the $600MM gain.

Is this analysis correct?

Answer: I read a news article on the subject. Since you piqued my interest, I looked it up.

Section 1043 of the Internal Revenue Code was enacted in 1989. It allows executive branch employees to defer - not avoid - tax on gains realized when they are forced to sell their holdings due to conflict of interest rules. The proceeds must be reinvested in Treasury securities or approved mutual funds.

The basis of the reinvestment property is adjusted so that the deferred gain will be taxed when that property is disposed of.

I am not aware of any rule that would allow that gain to be untaxed because he is a federal employee.

Energees Management - Offer Update

Energees Management - Offer Update