Taxes: home deductions
Article Abstract:
The Tax Reform Act of 1986 has severely restricted the ability of taxpayers to deduct home expenses for personal and business purposes. The Act is placing limits on the amounts that can be deducted, does not allow taxpayers to take a home office deduction when a part of the home is leased to an employer (a restriction which also applies to independent contractors), and limits home office deductions to the net income of the business (thus effectively eliminating the home worker's ability to create a net loss position based upon home office expenses). Interest deductions on house payments by home owners are still allowed by the Tax Reform Act, although interest paid on consumer credit arrangements (such as credit cards) will no longer be permitted.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1986
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More income subject to social security taxes
Article Abstract:
The Revenue Act of 1987 expands self-employment and 'FICA' taxes to groups of taxpayers and categories of earnings not previously subject to such taxes. Directors of corporations are now considered to be self-employed taxpayers, with their income to be included during the year earned, regardless of when they actually receive it. Also affected are members of the armed forces reserve, self-employed or otherwise unincorporated taxpayers, and spouses of taxpayers who are employed in their mate's business. Taxpayers have little left as a way of avoiding social security taxes. Congress's demonstrated intent has been to extend the social security tax to as many types of taxpayers and income as possible.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1988
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1991 tax changes for the individual taxpayer
Article Abstract:
Many new tax rules took effect at the beginning of the 1991 tax year due to the enactment of provisions in the Revenue Reconciliation Act of 1990. For better tax planning and preparation of tax returns, taxpayers should be aware of major changes, including the new tax rates, capital gains rate, exemption phaseout rule, itemized deduction phaseout, alternative minimum tax rate, charitable contribution of appreciated property, and the self-employed health insurance deduction.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1991
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