Q: My son just started a new job where he's required to wear a suit and tie. Since he had to buy several new suits for this position, can he deduct the cost. G.R., Islip, N.Y.
Small Business Tax
Section 179 vehicles should be a key part of your small business tax deduction strategies. Can Section 179 property fit in with your business tax strategies?
Let Business Management Daily help you get each and every rental property depreciation credit and business tax deduction you’re entitled to.
An S corporation operates a "pass-through" entity, meaning all corporate income and deduction items pass through to shareholders, who then report those amounts on their personal returns. Result: You owe personal income tax on your share of S corp profits.
Donations to charities offer tax savings as well as the chance to support your favorite cause. But don't let a charity use your money for causes you don't support. A bit of advance planning can make sure your dollars go where you want.
Check your stockpile of Series EE Savings Bonds. Time is running short on a great tax-deferral strategy.
When my son was born, relatives gave him Savings Bonds. Now that he's going to college, we want to use some of those bonds to help pay tuition. Do we have to pay tax on the income?
Q: A recent Mail Call question addressed whether a taxpayer would have to return the $400 advance child tax rebate if his income was too high for 2003. (See 10/06/03 issue.) While your answer indicated that he would not have to write a check to the IRS, I believe that the additional credit would still have to be added back to his 2003 tax liability on his return. Do you agree? J.W., via e-mail
Q: In 2003, I started a sideline business selling items on eBay. If my regular salary at work exceeds the Social Security tax wage base, do I have to pay self-employment tax on my eBay earnings? S.J.S., via e-mail
Q: I'm in the middle a dispute about a landscaping bill. The other day, someone from the landscaping company called my company and asked to speak to my boss. Is that legal? C.N., Glen Burnie, Md.
Q: You wrote a story that said any mortgage interest for periods of "personal use" of a rental property is deemed personal interest and therefore nondeductible. (See 10/6/03 issue.) But couldn't that personal portion be treated as "second residence" mortgage interest and therefore be deducted? J.W., via e-mail
The IRS turns a skeptical eye toward what it deems "unreasonable compensation" paid to C corp owner-executives. The taxman can decide your salary is too large and label part of it as a nondeductible dividend.