Any tax question? Feel free to ask.

Can you suggest : how to deal with the income made by using car ( UBER).

You can include the following expenses to minimize the taxable income and reduce the tax.

1. Actual expenses for the car or standard mileage rate

a. You can use actual expenses for the car
i) Lease payment to the car extent to the business use (if car is leased)
ii) Depreciation expense for the car if you own it
iii)Interest you pay on auto loan
iv) Gas cost
V)License, Title and Registration
vi)Maintenance for the car
vi)Insurance for the car
Or

b. Standard mileage ( 57.5 c/mileage for 2015). You can tax an expense of 57.5 c for each business mile. For example, if you drive 10,000 miles for business use, you can expense $5,750.

You always pick higher of option A or B. Most of the time standard mileage deduction will be higher for most of the people.

In addition to option A or B, you can deduct the following expenses.

A. Telephone bills for the business usages
B. If you buy a new phone for the business purpose, even the cost of phone will be deductible.
C. Foods and drinks for passenger
D. Car wash
E.Parking and Toll charges


If you keep proper track of all the expenses you have, you can save a lot in taxes. You can refer to above mentioned items for getting documents organized for upcoming years.

Best of luck.

How is capital gains in stock market taxed for short term? I heard it is 0% for long terms for people in the 15% tax bracket.

Mr. D,

There is no special tax treatment for short-term capital gain. It will be taxed at the ordinary rate which means whatever tax bracket you are in for the other income, same tax rate will apply for short term capital gain as well. The 0 % or 15% tax rates only apply to long term capital gain.

Hope this answered your question.

Thanks tax services. suppose my income for year is $37400 then I come under 15% tax bracket now if I have capital gain of $1050, would $50 be taxed at 15% and the rest $1,000 be taxed at 25% or the whole $1050 would be taxed at 15%.

PS: tax bracket for 2015 is 15% for upto $37450. and I am assuming short term capital gain.

Mr. D,

I am not sure whether $37,400 is your taxable income or your gross income. Assuming $37,400 as a taxable income, the short term capital gain will be taxed at ordinary rate. Which means all of the income including short-term capital gain, first $9,225 will be taxed at 10% and remaining $28,175 will be taxed at 15%.

Keep in mind if $37,400 + 1050= $38,450 is your total income, that's not a taxable income. Based on the info you gave, you filing status is single and you get to deduct ( $6300 +
$4000) $10,300 from total income. So, your taxable income will only be ( $38,450-10,300=$28,150). So, for first $9,225, you pay tax at 10% and remaining ( $28,150-9225=$18,925) $18,925 at 15 %.

As your information was not complete, I provided answers for both scenario depending on the figure that gave me was your total income or taxable income.

Could you describe deductibles that you can use from your rental income to reduce the tax ?

The. Deductible expense are as follow:

1. Depreciation for building
2. Auto and travel expenses ( for auto, you can either use standard rate or actual expenses)
3. Interest and property tax
4. Management fees
5. Repairs, cleaning and maintenance
6. Advertising
7. Supplies
8. Electricity, water & guest ( if you paid)
9.commisssions
10.eviction cost
11.Any other cost related to rental activities. I have pointed almost all common rental expenses

Hope this helps. Best of luck.

Zinx01,

Also you can deduct insurance expense.

Tax Service, may be its a dumb question but I am just making sure if I am filing taxes correctly. IF not, I might want to change the process to make it correct.

My gross income is around $66,000. My total tax deduction is around $8,000. I have a wife and a child. My wife is unemployed (no income whatsoever). How much (rough estimate) would be my tax return next year?

Hello Tax services

I have to send $500 a month for my family in Nepal. Is there any ways to expense it? Can I claim they are dependents somehow?

Thanks Tax Services. I am not living in the house so few items may not apply. However, I rented out the house and living in an apartment (work situation), can i deduct any expenses related to apartment ? How about the storage unit that I am renting ?

collegefootballrocks,

First I have some additional questions before I give more precise answers.

1. How old is your child?
2. Is $66,000 your W-2 income or 1099 Income?
3.You were saying you have a rough tax deduction of $8,000. I need to know how you came up with that question?
4. Do you have medical coverage for the whole family?

Once you answer those questions, I'll let you know.

यदि तपाइँ DV परेर आउनु भएको छ वा लामो समय बस्ने बिचार भए IRS को साइटमा गएर १०४० Instruction डाउनलोड गरेर फुर्सद भएको बेलामा पढ्ने | कसैले भनेको थियो ड्राइभर लाइसेन्स , काम पाउनु पछि IRS र ट्याक्स बारे जानकारी राख्ने जरुरि छ |
बद्रिजीको कुरा पढे पछि मेरो रिलेटिभ को कुरा झैँ लाग्यो : फलानोले एति फिर्ता पर्यो रे त्यो ठाउमा गएर फाइल गर्दा ( we tend to rely on second hand information) ? Expense देखाउन मिल्दैन |

२०१५ ट्याक्स Estimate
https://www.taxbrain.com/tax-estimator.asp

zinx01,

Majority of the personal expenses are not deductible for tax purposes. If you use part of your rented apartment exclusively for business purpose (for eg- a room for home office), you can can take that as a home office expense in your return.

You mentioned you had to move for the job. You can use moving expenses in your tax return as well.

badri man,

Unfortunately you can't as they are outside the U. S. In order to claim the parents as dependents.To be eligible, your parents must be a U.S. citizen, a U.S. resident alien, a U.S. national, or a resident of Canada or Mexico. This situation doesn't apply in your case.

But keep in mind, if you send more than $14,000 in a year to the same person, gift tax rule may apply to you. Most of the time people don't realize the fact while sending the money back home.

I provide tax and accounting services. If you guys need any service in the future, you can email from here which will be directed to my company's email address and we can communicate from there.

Tax Services:

1) My child is 10 months old
2) $66,000 is my W2 income
3) $8,000 I came up by the fact that almost same amount was deducted last year with similar income. So, my assumption is based on last yr cut.
4) Yes, I do have medical coverage for my entire family for which I spend about $500/month from my gross income. Hope I answered all your questions. Thanks.

collegefootballrocks,

1. You will get a child tax credit of $1,000
2. You will get deduction of $24,600

Your taxable income will be $ $41,400. Which means you will be taxed at this amount.

Total tax = $5287.5

You will pay or get refund of app ( $5287.5-1000-federal withholding)

Thus you can check whether you will pay or get money back based on your federal withholding.

Hope this helps.