It would bar companies from taking a tax deduction for the cost of moving operations to an overseas start-up.
While you report goods and services received as income, you may also be entitled to take, as a deduction, the cost of goods or services which were bartered in return.
If the music school sells the violin within three years of your gift (but not during the same calendar year), you (usually) must include the amount your initial deduction exceeded your cost as income in the year of the sale.
For instance, one way to pay for bringing the uninsured into the health-care system (a noble Democratic priority) is to scrap a distorting tax-deduction that veils the true cost of health insurance, a policy espoused by John McCain last year.
My employees can deduct the cost of their health insurance as a pretax deduction.
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But much the same result could be achieved by capping the exclusion for employer-provided health care (exempting most lower-cost plans) and replacing the mortgage-interest deduction with a tax credit.
The cost of your gold insurance can be a miscellaneous itemized deduction--if you take those.
High-cost areas with high homeownership benefit most from the mortgage deduction.
There is also a "special depreciation allowance" that under some scenarios permits a first-year deduction of 50% of the vehicle's cost.
However, if you are a significant shareholder of a smaller-cap company like wireless connectivity provider iPass (nasdaq: IPAS - news - people ) and intend to present a legitimate resolution at the meeting to unlock shareholder value, the cost of getting to California for the meeting would be an allowable deduction.
The Section 179 depreciation deduction privilege allows eligible businesses to deduct 100% of the cost of qualifying new and used assets in Year 1.
Phil Mickelson at 2007 Barclays Singapore OpenFederal tax law changes beginning in 2013 could further aggravate the situation because of rules applicable to high income taxpayers that could reduce itemized deductions (including the federal state income tax deduction) by as much as 80%, making the net cost of state income taxes more expensive.
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Thus, for the well-heeled sports fan sitting court-side, the federal government rebates more than one-quarter of the required donation. (80% of the top income tax rate, 35%, equals 26%.) Since the deduction carries over to state income taxes, most states also implicitly rebate a portion of the cost.
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