Archive for the ‘Tax’

  • Tax Structure in Real Estate>
    Tax Structure in Real Estate
    Real estate is booming and with rising prices it is one of the most viable investment options and brings in appreciation and gains at any given point; however real estate is burdened with heavy taxes which impact the buyer as well as the seller of the property. Let us analyze the tax structure related to real- estate. Stamp duty tax is imposed in the sale agreement to give a legal status to the transaction, and in case the property is not duly registered and stamp duty not paid, in case of a legal litigation the transaction is not admissible in the court of law and the courts will be disinclined to entertain your case. Stamp duty is payable on the agreement value, which differs in different states. To conserve and maintain the records of the property, it has to be duly registered by the registering  [...]
    at June 11th, 2013 at 01:06 am
  • Legal Methods To Evade Tax>
    Legal Methods To Evade Tax
    Evading taxes is a crime, but avoiding and saving taxes is right of every law abiding citizen and there are many strategies structured to save your taxes and bring down your tax liabilities. Some of the methods one can opt for saving taxes are- 1. Tax laws permit investors to adjust the cost of the asset to inflation during the holding period, and with inflation has been the cause of worry for most of us, the tax payer can take advantage of the indexation and reduce their tax bills, however not all investments are covered under this item and only certain capital assets, debt funds, gold ETFs are eligible for deduction. 2. If you gift money to your wife, and the same is invested in her name, the tax laws will club her income with yours and the advantage is that the clubbing takes place at the  [...]
    at May 10th, 2013 at 12:05 am
  • India – Left Leaning Congress Ups Social Spending by 17 per cent>
    India – Left Leaning Congress Ups Social Spending by 17 per cent
    Pranab Mukherjee, Finance Minister of India unveiled the Union Budget for the financial year 2011-2012 yesterday, 28th February. The new financial year starts from 1st April. The budget focused on a good number of reforms aimed at the poor or the “aam aadmi” (the common man). The budget promised several populist measures such an as increase in social expenditure 17 % and decrease in inflation, especially food inflation. Social spending means the money earmarked for the various welfare schemes by the government to eradicate illiteracy, unemployment and other social evils. Spending was increased for the benefit of education, rural employment, food programs, and agriculture. The poor and rural masses form the large percentage of the country’s population, and are also the core support group  [...]
    at March 2nd, 2011 at 05:03 am
  • Marginal tax rates and how they are set to impact you in 2011>
    Marginal tax rates and how they are set to impact you in 2011
    A few weeks ago, President Obama along with the Congress gave life to a bill that would see an extension of the Bush era tax cuts. Now if the Republicans hadn’t gained a majority in the house, it most certainly wouldn’t have passed. But facts are facts and it most certainly did pass. H.R.4853 is what you have to look out for. For some time now, there has been talk that Congress would start to only tax the rich in an increased manner, but the November election scotched all of that. The Democrats and President Obama had not option but to deal with the marginal tax rates in this manner. So what does all of this mean for you, for the tax brackets, for the marginal tax rates and for the year 2011? What it means is that these rules will remain as is for the next years as is and there will only  [...]
    at January 3rd, 2011 at 01:01 am
  • Income tax deductions you don’t want to overlook>
    Income tax deductions you don’t want to overlook
    Every year, there are millions of Americans that end up overpaying their taxes. Some of these income tax deductions are small, but over time these small income tax deductions can add up to a large amount if overlooked. Make sure you’re not one of those Americans that overpay on your taxes by watching for these simple opportunities that are frequently ignored. Charity costs We can deduct donations made for cash or goods, and most of us know about this. But how many of us know that we can also put down our out of pocket expenses by way of income tax deductions? This includes transportation and everything else you can think of. All that is needed is that you back up these expense claims with the correct documentation and don’t try and pull the wool over the IRS’ eyes. Job hunting If you  [...]
    at December 22nd, 2010 at 04:12 am
  • Mortgage escrow accounts and what you need to know>
    Mortgage escrow accounts and what you need to know
    In essence, Escrow is a term that is used by businesses to define a transaction where buyers and sellers cannot make a direct exchange of money or goods or services and neither wants to take the risk of non-delivery later. These trust issues are solved by a third party, known as the Escrow, who releases what is entitled to the party in question once they have fulfilled their part of the bargain. This Escrow can also come into play as real estate escrow accounts. In this, the buyer gives the money to the escrow and the seller gives the rights to the escrow as well and neither gets what they are entitled to unless the escrow gets both the funds and the title in question. Similarly, it can come into play as mortgage escrow accounts. Mortgage escrow accounts are not the same as a real estate escrow  [...]
    at December 8th, 2010 at 05:12 am
  • A taxing issue>
    A taxing issue
    President Barack Obama has championed the cause of tax changes to the current US tax code in an effort to increase taxes on companies that go about exporting its jobs to foreign shores. For long now, there have been those that have decried the flight of jobs and capital to countries such as India and the Philippines and there have been voices (loud, clear voices) that have wondered why the administration wasn’t stepping in to try and stop this flight of jobs to non-American workers. Perhaps as a response to those exhortations or of his own accord, President Obama has finally spoken out against this phenomenon that is a reality of our and will now hopefully set the ball rolling for tax reforms that will not only swell America’s coffers, but also hopefully create more jobs on American  [...]
    at October 20th, 2010 at 12:10 am
  • America needs a tax cut>
    America needs a tax cut
    It’s been a few years since the onset of the financial crisis now, and the continued wobbling of the financial, employment and real estate markets is still a worry now as it was a few years ago when all of this exploded in our face. The lack of any distinct centralized stimulus has meant that a double dip recession is now a far greater likelihood than at any other point in this sequence of events that has led us up until this point. The government has done a lot to help alleviate the troubles that ail us. It setup the Troubled Assets Relief Program, initiated stimulus spending to help prop up a wobbling economy and offered near zero percent interest rates. This has helped stop the spiral of the American economy into the sort of situation that brought about the Great Depression. But all of  [...]
    at September 20th, 2010 at 12:09 am
  • Tax Sheltered Annuity Plans For Retirement>
    Tax Sheltered Annuity Plans For Retirement
    Tax Sheltered Annuity, or simply a TSA, is a plan that permits employees of public organizations to contribute some amount every month, without paying taxes on it. So, the contributor can invest of part of his gross annual income toward a tax-sheltered plan (403(b) or TSAs). People who are eligible to contribute toward such plan includes employees in public schools (1 to 12), universities, colleges, churches, charity organizations, and libraries. The contributor must keep investing in this plan until the age of retirement (59 ½ years) to receive tax benefits. If he withdraws money after retirement age, taxes applicable on such withdrawals are comparatively low. The funds toward which the contributor has to pay is usually chosen by the employer. Quite similar to other retirement plans, transfer  [...]
    at June 14th, 2010 at 03:06 am
  • List Of Tax Deductions That Would Never Change>
    List Of Tax Deductions That Would Never Change
    There are various tax deductions available for an average American. The sad part, however, is most of them don’t make use of these deductions. Here is a complete list of tax deductions that wouldn’t change for many years now. 1.    Loss on Investment Deductions If you incurred any losses from your investment products like mutual funds, bonds, stocks, etc. you ca deduct that amount from your taxable income. You must contact your broker and ask for an electronic statement, which might be useful to prove your loss. 2.    Charity Donations If you made any donations to a recognized charitable organization, it’s deductibles. You don’t necessarily have to give cash, you can give away furniture, clothes, and any other item in good condition as charity, and they are all deductible. This  [...]
    at May 4th, 2010 at 04:05 am