Running for president is legally considered a personal expense, nondeductible under the income tax.
The IRS claimed the payment was nondeductible whether the payment itself was legal or not.
Some compensation may be labeled as unreasonable and therefore ruled nondeductible by the corporation.
But the Tax Court sided with Bilzerian, ruling that only payments illegal by themselves are nondeductible.
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If the fine or penalty is intended to be punitive , then the payment is probably nondeductible.
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For families that qualify, or might someday qualify, for aid, a nondeductible IRA is well worth the paperwork.
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He apparently is fighting the Internal Revenue Service's general policy that many legal fees are nondeductible personal expenses.
Section 529 college savings plans, deferred annuities and nondeductible IRAs are all examples.
Regardless of whether the payment itself was legal, the IRS said it furthered an illegal activity so was nondeductible.
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Everything above the rate would count as a nondeductible return on equity.
The Tax Court ruled that only payments illegal by themselves were nondeductible.
Here goes: deductible IRA, nondeductible IRA, spousal IRA, inherited IRA, Sep-IRA, Roth IRA, 401(k), aftertax 401(k), Roth 401(k), Simple IRA and Simple 401(k).
While this could help the managers, it could put investors at a disadvantage by giving them large amounts of nondeductible investment expenses, says Mr. Gordon.
With a mortgage, you are sure to run a net loss that could lead the Internal Revenue Service to declare your venture a nondeductible hobby.
To prevent double taxation, shareholders are required to increase their basis in the S corporation stock by income and decrease it by losses, distributions, and nondeductible expenses.
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Some payments to criminal defense lawyers are personal and nondeductible.
But, you can make a contribution to a nondeductible Regular IRA and immediately convert it to a Roth IRA. Why the IRS would allow this is beyond me.
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However, there are no income limits for contributing to a nondeductible IRA, and any taxpayer can immediately convert a nondeductible IRA to a Roth IRA regardless of income.
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Possible tipping point: The alternative minimum tax, which makes state and city taxes nondeductible on federal returns, finally catches up with New Yorkers and the pampered municipal employees who ride on their backs.
Bribes and illegal payments are also nondeductible.
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If you have a nondeductible IRA, you (or your IRA heirs) will need all the old 8606 "nondeductible IRA" forms, as well as page one from all the 1040s in the years you contributed, to prove that part of any IRApayout isn't taxable.
Deductible IRAs (with the same maximum contributions) are available to those with lower incomes or without any other pension. (Nondeductible tax-deferred IRAs are open to all but are not worth it, given the current low top 15% tax rate on long-term capital gains and dividends.) While you're at it, consider doubling up and making your 2004 IRA contributions in January, too.
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