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Posts Tagged ‘Finance’

Personal Tax Planning Canada

Question: Does Canada charge custom tax for personal belonging that I send to myself from Taiwan and receive in Canada?

I am wondering does Canada charge custom tax for personal belonging that I send to myself from Taiwan and receive it later in Canada?

I am planning to send my personal belongings(via surface mail)such as books, video game & consoles, DVDs, printer, scanner and etc. to myself when I fly to canada right after I finish sending all of my personal stuffs.

If they do charge custom, what item value should I put on the declaration form in order to avoid the tax charge?

Answer: If you are moving to Canada permanently, all personal items over a year old will be duty- and tax-free.

You need to make a list of everything you are importing. These are called GOODS TO FOLLOW. You will need to present the list upon your entering Canada.

You are allowed to import personal goods ONCE when you immigrate. If you are already a resident, these rules do not apply and duty/taxes will be charged on the fair market value of the used goods.

Dion Economic Vision Part 2 of 2

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Estate Tax Planning 2009

Question: Real Estate Tax advice.. very detailed ..any experts in real estate tax out there?

We are selling our principal residence in South Carolina which we will have lived in and owned for about 18 months (thus short of the 2 year mandatory minimum for tax free status).

We will have tens of thousands of dollars in capital improvements (new hardwood flooring, counters, siding, deck, extensive bathroom renovation..done in 2009). We also have lots of money in repairs and painting, cleaning, yard maintenance etc.

We will hopefully sell in spring 2010.

1. We plan to make about 80k over what we bought it for.. can we deduct any of what we spent fixing it up?
2. Will we get taxed on every dollar over what we originally paid in 2008? There are no extenuating circumstances to force the move.
3. Can we deduct our closing costs from originally purchasing it?
4. Is there anything else you can tell me that might help..ie. things I CAN deduct to help me avoid some of the profit tax?

Thanks and Happy New Year!

K

Answer: 1. We plan to make about 80k over what we bought it for.. can we deduct any of what we spent fixing it up?

Add the costs of improvements, but not maintenance and repairs, to the purchase price of the house. Also, add the real estate commission you pay to sell the house to the purchase price of the house. The total of these amounts is included in the "basis" of the house (see also 3 for other additions to the basis). Only the difference between the selling price and the basis of the house is subject to income tax.

2. Will we get taxed on every dollar over what we originally paid in 2008? There are no extenuating circumstances to force the move.

No. You may be subject to tax only on the difference between the selling price and the basis of the house. Since you have owned the house for 18 months, your gain is long-term capital gain and is going to be taxed at a maximum of 15%.

3. Can we deduct our closing costs from originally purchasing it?

You can add the cost of the survey, deed recording fee, title insurance, and other expenses which are related to the purchase of the property to your basis. You cannot add any fees related to the mortgage, such as the mortgage origination fee.

4. Is there anything else you can tell me that might help..ie. things I CAN deduct to help me avoid some of the profit tax?

In the year of sale, if you have not deducted all of the points (also known as origination fees), you may deduct them on Schedule A.

Best advice is to seek out an experienced professional who can go into the details as mentioned above. It will be money well spent and can save you a lot in taxes.

Business Valuations for Gift and Estate Tax Planning: What Financial Planning Professionals Need ...

Tax Planning 2009 India

Question: Citizens unite! What do you think about your own US company I B M outsourcing our jobs to lndia?

And I B M also wants govt stimulus $$$ from your taxes?
Are you mad?

http://www.cnn.com/2009/US/03/26/ibm.outsourcing/index.html

(CNN) — IBM’s reported plans to lay off thousands of U.S. workers and outsource many of those jobs to India, even as the company angles for billions in stimulus money, doesn’t sit well with employee rights advocates.

Answer: Just another example of what happens when you demonize a company without considering the government policies that force them to do something like this.

Maybe if it were easier for a business to operate in the US, more jobs would stay here.

tax guru weekly program 8-3-2009

Income Tax Planning 2009

Question: How would the economy react if Income Taxes were 0% for 2008, Interest Rates 0.5% ….?

But then in 2009 interest rates will go back to where they are now, and the taxrate will jump up to 1990s-taxrates.

The government would plan on eventually recovering from the taxless 2008 year with 40% rates every year on after, excluding 2008.

Would the short-term relief boost the economy, or would the tax increases for 2009 and after affect the current stock market already?
My prediction:

Immediate short-term: rapid increases in consumer spending, borrowing, investing

A few weeks later: Inflation on the increase, rising prices. Artificially overvalued stock prices. No safe investment.

Eventually: Stock market peaks and plateaus. Fear of market turnaround forces investors to withdraw from market, sharp decline.

Nowhere to go, problem out of Government control, high inflation, no bond market, no stock market, no savings.

Answer: Considering there would be a mad rush to cash out of our treasuries because we'd be printing money to pay all of our bills, and it would scare the crap out of everybody, hyperinflation and economic devastation.

Income Planning - Spotlight November 2009

Giving To Charity And Taxes

Question: How much can I right off when giving to charity?

Ok lets say hypothetically that I gave 50% of my gross income to a charity last year. How much can I right off and not owe taxes on?

Answer: Depending on what you're giving and who you're giving it to, the limits range from 20% to 50% of your AGI. 50% is for total contributions. See IRS Publication 17, Chapter 24 or other IRS documents.

Obviously it is only legal to deduct what you actually gave. You can be asked by the IRS to prove that you actually made the contributions you claim.

Liberals Have Really Big Balls