The Tax Questions Blog

Posts Tagged ‘nonprofit’

Question: If your expenses for a home-based business come to more than the income from that business, can they?

offset your personal income? If not, does anyone know of legal ways to reduce that taxable income (other than the normal deductions everyone knows about?) How do some people with good incomes manage to pay zero taxes?

Answer: They can and if they are you will be audit bait.

First National AlarmCap Income Fund Announces Internal Reorganization and January Distribution

EDMONTON, ALBERTA-- - First National AlarmCap Income Fund is pleased to announce a cash distribution for the month of January 2010 of $0.025 per Class A trust unit of the Fund. The distributions will paid on February 26, 2010 to unitholders of record as at the close of business on January 31, 2010.

Tax Law - StateLawTV.com

Question: What is the minimum taxable income in India? For a person and for a business, if different?

I am going to start a business and I am bit confused about the tax part. The money involved in my business has three components-

A - my service charge (the real amount paid in return to my service),
B - a deposit which is refundable. I deduct my service charge "A" from this and return the rest to client, and
C - the expenses in running the business/enterprise.

1. Could you please tell me on what amount I am supposed to pay or calculate my eligibility to pay the taxes in India?
2. Is there any other rebate available to businesses, which I need to consider while calculating my eligibility to pay the taxes in India?

Any other suggestions related to the tax or new business part are most welcome, since this is the first time I am going to start a business. It will be an internet based enterprise offering a particular service to its member across the globe, for a fee.

Answer: If you are planing your business as sole proprietor of the business, then the business income and your personal income if any like interest on deposits, salary income, capital gains from shares etc., will be clubbed. You have to file only one income tax return showing all the above said incomes. In this case you have to pay income tax as per slab rates. (after tax free income of Rs.1,10,000/-)

For men <65 years:
Rs............0 to 1,10,000 = Nil (Tax free)
Rs.1,10,001 to 1,50,000 @ 10%
Rs.1,15,001 to 2,50,000 @20%
Rs.2,50,001 & above @30%
Plus 3% Education cess on Tax amount
Plus 10% Surcharge on Tax if the income exceeds 10 lakhs.

If you are planing for a parternership company, then parternership company has no tax free income and it has to pay tax for the entire amount @34% App.

Illinois Leads Municipal Sales With Market Set to Extend Rally

Jan. 4 (Bloomberg) -- Illinois , the second-lowest rated U.S. state after California , will borrow $3.47 billion this week with the municipal bond market poised to extend its biggest rally since 2000.

MeltDown #475 EMERGENCY ECONOMIC STABILIZATION

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.

Senate Health Bill Could Hit Middle Class Hard- Watch 'Special Report' for Health Care Countdown

Senate Majority Leader Harry Reid, right, attends a news conference on Capitol Hill Dec. 22, along with Senate Finance Committee Chairman Max Baucus. (AP Photo)

ACORN Chief Community Organizer Bertha Lewis, Rep. Darrell Issa with Chris Wallace FNS - 09/20/2009

Question: What is considered taxable income?

I may have some income resulting from (three different) lawsuits and/or pre-trial settlements for three unrelated things:

1. Bodily injury from a car accident
2. Civil Rights violation (improper actions by police)
3. Illegal termination due to violation of FMLA

What are the tax implications from each of these lawsuits? What suggestions can you provide to structure settlements so they result in the minimum amount of tax owed (if any at all)?
For #3 above, the employer offered a severance package which if accepted, would result in normal payroll taxes as if I had actually worked during that period. I want to specifically structure the settlement so the monetary award is for something other than those wages to avoid the payroll taxes.

Answer: Section 61(a) of the internal revenue code specifies that gross income includes all income from whatever source derived. Thus, all income is included unless there is a specific exclusion.

The only exclusion that seems applicable for your situation is IRC section 104(a)(2) which excludes damages for physical injury. However, punitive damages from such an accident are not excluded. Thus, you should structure the settlement so that as much as possible is for compensation of the injury: including physical injury, non-pecuniary damages, and lost wages.

Unfortunately, a lost wages settlement from a non-physical injury do not appear to be excluded. Neither do damages from a civil rights suit.

Finance and Banking

The best thing we can say about this edition of Tax Talk is that, from the standpoint of the global capital markets, things are not as bad as they were a year ago. When we published our Q4, 2008 issue, the financial world, it seemed, stood at the edge of economic collapse.