The best protection from unexpected events is insurance; for the cost of an affordable premium you can obtain sizable benefits in case of loss. You may have a variety of policies for different purpose...
Maybe you've had a paper route, baby-sat, or worked at a fast-food restaurant while you were growing up and pursuing your education. Now you've landed a full-time job or are in the market for one. Wha...
Adding a new little person to your family is a thrilling and life-changing event. Taxwise, it also presents many opportunities and benefits you did not have before. Here is a listing of tax breaks tha...
- For purposes of the 3.8% additional Medicare tax on net investment income in 2013, how does this relate to rental income?
- Can I make a direct transfer of my IRA to my church and qualify for tax-free treatment (up to $100,000)? I’m 72 years old.
- I sold my residence at a loss. How do I report this on my tax return?
- I traveled to Africa on a mission trip with my church. I paid for the airfare. Can I deduct it?
Gifts
Gifts generally are given because of personal feelings without any expectations or strings attached. But business gifts usually are motivated by gratitude for some business activity or hope for future business activity. In recognition of this fact, the tax law allows a deduction for business gifts, but only in very limited amounts.
You may wish to bestow some gratuitous benefit on employees, customers, dealers, distributors, or other business relations. You can qualify for a deduction for business gifts, but the amount you can deduct is limited. Generally, you cannot deduct more than $25 per gift for any person each year (the same dollar limit in place since 1962). The dollar limit applies even if you attempt to make an indirect gift (for example, you give the gift to a company that is intended for the eventual personal use of a particular person).
Tax credits, including the foreign tax credit, the minimum tax credit, the retirement savings contribution credit, and the residential energy credit, increased by 8.2% in 2007 to $63.8 billion. The child tax credit, dependent care credit, and education credits declined slightly.
Source: Statistics of Income Bulletin, Fall 2009
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