#tax deductions

[cheshirelibrary]

[immaculatasknight]

A Zionist money machine

[100dayproductivity]

65/100.

Finished my taxes! Submitted it yesterday.

Last time we talked, I was trying to figure out my business-use-of-home expenses for the pet boarding part of my business. It was making my head hurt trying to figure out how I should calculate this.

I finally decided I should treat pet boarding like a bed and breakfast for the purposes of filing taxes. So to that end, I had to figure out what percentage of my home I use for boarding and for what percentage of the time.

First I considered what percentage of my house is used for boarding. The thing is, all dogs and some cats have free range of the home 24 hours a day. That translates to 100% of the home 100% of the time. But I'm pretty sure that's not gonna fly for deducting business-use-of-home expenses. The CRA wants a "reasonable" prorating of the expenses.

So I thought about what parts of my house I actually use for boarding. Generally, I confine cats to one bedroom. Two cats from the same household stay together in the same room, so it's not one room per cat, it's one room per booking.

For dogs, even though they have free range, they generally follow me around the house, which means that during the day they rarely go upstairs at all. Mostly they are in the two rooms I use the most during the day: the living room and the kitchen. If I leave the house, I'm pretty sure they just nap in the living room the whole time I'm gone. At night, some dogs sleep in the living room, others follow me upstairs to my bedroom and sleep next to my bed. However, if cats are boarding in my room and can't coexist with dogs, then the dog is shut out of my bedroom and lopes back down to the living room, or sleeps outside the bedroom. At this point I was considering dogs as using half the house for calculating purposes.

But then I thought about the times I've had multiple dogs from different households boarding at the same time. Often they just all nap in the living room, but sometimes I have to physically separate them, especially during mealtimes. At those times, I generally either put up physical barriers, or I tether the dogs in different rooms, usually one in the kitchen and one in the living room. I also thought about the fact that I sometimes block off the living room or the kitchen in order to keep a boarding dog away from my own two cats. Furthermore, nobody really hangs out in the dining room, which separates the kitchen and living room. It's more of just a pass-through. So in the end, I decided to consider dogs as using one room per booking as well, as per cats.

I then had to figure out what percentage of my home "one room" constitutes. I didn't want to use square footage, because honestly then I'd have to measure and that would be a huge pain in the butt. But also because it doesn't really matter what size the rooms are, it's the doors and barriers that are important. So I mentally divided my house up into the usable rooms or areas for keeping pets separated, safe and comfortable. Upstairs there's three bedrooms. The bathroom doesn't count because I don't put pets in there. The main floor is open, no doors, but not "open-concept"--there are walls and doorways, so I am able to put up barriers. I considered the main floor as consisting of three rooms.

Now the basement, I mostly just use it for storage, and also I keep the basement door closed, so no one goes down there. However, in high-season when it's super busy with multiple bookings, I do use the basement bathroom as over-flow to house cats. And when it has been super super busy, I have had one cat in the bathroom and another cat outside of the bathroom. There are no rooms in the basement other than the bathroom and the tiny boiler room/washer & dryer nook, where I do NOT house cats. So essentially there are two spaces in the basement cats can be housed: in the bathroom, or outside the bathroom. So for pet boarding purposes, I consider this to be two rooms.

That makes 8 rooms in total: 3 upstairs, 3 on the main floor, and 2 in the basement.

So the portion of my house that a pet/two pets from the same household use when they board with me is 1/8.

Phew!

Next, I had to figure out what percentage of the time a pet uses 1/8th of my house. A pet uses their portion of the house 100% of the time they are staying with me, but I don't have pets staying with me 100% of the time. To figure this out, I needed to add up how many days of the year I had a pet staying with me. I'll walk you through that calculation in the next post.

[abrown455]

Safe Harbors in a Storm: TPR Expensing Options

Effective January 1st, 2014, the Tangible Property Regulations (TPRs) might feel like yesterday’s news.  

The TPRs guide taxpayers through an important real estate decision making process – can the cost of an asset be expensed?  Or must it be capitalized?   

The TPRs also permit Partial Asset Disposition, or the immediate write-off of the remaining depreciable basis of a disposed asset.  

This was front page news back in 2014.   

However, a veritable alphabet soup of legislation has passed since then – TCJA, CARES, CCA, and more – and it might be easy to simply forget about the TPRs.  

The Regulations remain very much in play, working beautifully in combination with newer legislation to comprise a comprehensive tax strategy.  For more information kindly visit - https://capstantax.com/safe-harbors-in-a-storm-tpr-expensing-options/

[ifindtaxpro]

Attention pet grooming and boarding businesses! Maximize your tax benefits by leveraging deductions for animal care expenses and facility costs. Consult with a tax professional to optimize your tax strategy and minimize liabilities. #PetGrooming #BoardingServices #TaxDeductions

[saicpaservices]

Elevate Your Financial Journey with SAI CPA Services

SAI CPA Services stands as a beacon of reliability and expertise in Middlesex County, NJ, offering a comprehensive suite of accounting and financial services. With over 25 years of excellence, our team of seasoned professionals specializes in accounting, tax preparation, payroll management, and strategic financial planning. Whether you're an individual looking for personalized tax solutions or a business in need of comprehensive financial management, we're here to guide you every step of the way. Trust SAI CPA Services to navigate the complexities of finance with precision, integrity, and a commitment to your success.

Connect Us:  https://www.saicpaservices.com/contact-us/ https://www.facebook.com/AjayKCPA https://www.instagram.com/sai_cpa_services/ https://twitter.com/SaiCPA https://www.linkedin.com/in/saicpaservices/ https://whatsapp.com/channel/0029Va9qWRI60eBg1dRfEa1I

908-380-6876

1 Auer Ct, 2nd Floor 

East Brunswick, NJ 08816

[taxcellentt]

Online TDS Return Filing. 

Taxcellent provides Online TDS Return Filing, facilitating the deduction of tax reports. With our user-friendly platform, individuals and businesses can easily input their TDS details and thus save valuable time and effort. We ensure accuracy and compliance with tax authorities and highly customized personalized services to our clients.

Website URL: https://taxcellent.in/tds/tds-returns-for-salary/

[thetaxguyin]

Deductions which can be claimed under the New Income Tax Regime

Are you navigating the complexities of tax planning under the new income tax regime? Are you looking to maximize your savings by leveraging all available deductions? Look no further! In this definitive guide, we’ll walk you through the myriad deductions offered under the Income Tax Act of 1961 in the new regime, empowering you to make informed financial decisions and optimize your tax…

[oconnor2023]

How To Get Tax Deductions For A Foreign Property - Cut My Taxes

Owning foreign property have differences in tax benefits. Here are tax deductions you can gain from owning a foreign property. Visit https://www.cutmytaxes.com/how-to-get-tax-deductions-for-a-foreign-property/ to know more information

[babatax]

Unlocking Tax Savings: Comprehensive Guide to Income Tax Deductions in India

Tax Deductions: Income tax in India follows a tax slabs where taxpayer income has categorised slabs and certain tax rate are assigned to them. This is a progressive system of taxation. When people earning more income they are tax at more tax rate slabs and according to their income the tax rate will be applied. And Income tax Department has two slabs rate that is old regime and new regime. The…

[cindybanksteam]

Are Home Improvements Tax Deductible?

There are tax implications of making home improvements, but only in specific situations. When it comes to your taxes, a home improvement might include any work done that increases the value of your home substantially, improves the useful life of the property, or creates new uses.

We’ll get more into what that means specifically below.

Home Improvements vs. Repairs

First, the money you spend on your home in terms of taxes can be divided into improvements and repairs.

The cost of capital improvements can be added to your tax basis in your house. Tax basis is what’s subtracted from the sales price to figure out how much your profit is. With that in mind, you can only take advantage of this if you’re selling your home.

A capital improvement in this context is what was mentioned above—anything that adds value, adapts a home to new uses, or prolongs its life. Something that you could include as a capital improvement might be a new roof or central air-conditioning.

Capital improvements don’t have to be big purchases either—something like storm windows counts or a home security system.

Repairs can’t be added to your basis. Repairs might include painting your home or fixing your gutters.

If you make improvements to your home, make sure you keep records of everything so you’ll have them if you do sell.

Tax Deductions for a Home Office

One way you could save on your taxes and improve your home at the same time is to build a home office. You get a small deduction on improvements you make to your home if you’re using one of the rooms exclusively as your work area, which many people are doing now.

Any repairs benefiting your home can also be deducted, based on the percentage amount of your home used as an office.

Similarly, if you rent out a part of your home, you might be able to deduct what you make in improvements to that area. If you were to, just to give you an example, add a bathroom to the area of your home you rent, you might be able to write that off in its entirety.

Medical Modifications

If a health care provider suggests modifications to your home to help you or to allow you to provide care for your family member, such as an aging parent, the expenses of these updates may be deductible. Examples include adding a wheelchair ramp or modifying your doorways. If the improvement adds value to your home, on the other hand, it’s not deductible.

Upgraded Energy Systems

The IRS has residential energy-efficient property credits. Qualifying properties according to their guidelines updated in April 2021 include solar electric, solar water heaters, fuel cell property and small wind turbines. Also included are geothermal heat pumps.

Improvements qualifying for a residential energy property credit include adding energy-efficient exterior windows and doors and skylights and roofs that are metal or asphalt. Insulation updates are included, and so are upgrades to heating and air systems to make them energy-efficient.

There are some ways to save on your taxes by upgrading your home, but limitations also exist. If you’re unsure of anything, it’s best to talk to a tax professional because guidelines can change from year to year.