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Tax Brackets

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Used in taxation systems, a tax bracket is a cut-off point that progress or regress depending upon income. For example in the US, the brackets are divided into increments of $10,000 US Dollar (USD). These brackets do not include other taxes such as disability insurance or social security payments. You often pay percentages that are different depending on the income you make and the dollar amounts of your income are taxed by bracket. To understand this better, imagine that a person who is making $1-10,000 USD is taxed 10% of their income. If your income is even a dollar more that the first $10,000 USD, you would be taxed at a higher rate. Each person also has allowable deductions. The single person making $10,000 USD wouldn’t pay $1000 USD in taxes because he would have a standard deduction of $5,350 USD and a personal exemption of $3,400 USD. The money made in excess of the deductions would be the amount that is taxable.

Canada Income Tax

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Income tax is levied by the Canadian government in both the federal and provincial levels. April 30 of the current year is the deadline for filing of taxes the previous year. Income tax rates are different for every income and location in Canada; 19% is the lowest combined rate and 46.4% is the highest rate. Once a year income taxes must be paid by any person with a taxable income in Canada. Tax deductions are instances that allow a portion of a portion of a person’s income to avoid paying taxes. A person must pay income tax on all of his income of the year if they do not qualify for any tax deductions. Non-Canadians who are employed in Canada, conducting business in Canada or selling a taxable Canadian property must pay Canadian income tax.

Taxes on Cosmetic Surgery are Discriminatory

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There are a lot of people undergoing cosmetic surgery. The taboo is now gradually going away and people are more accepting of cosmetic surgery. This is true for both medical and aesthetic purposes. This is the reason why this has become a billion-dollar industry in recent years. Sadly, this was seen by the government as an opportunity to raise higher taxes. They know that this industry will continue to be popular and so they found a way to take more money from the people.

Making Cosmetic Surgery More Elusive

Gone were the days when cosmetic surgery is just for the elite group and the wealthy. These days, everyone who deems something must be altered in their body go for this treatment. Those who suffer from certain conditions also go for treatment. People with varicose veins for instance go for sclerotherapy or laser surgery. In short, not everyone who goes for cosmetic surgery just wants to look more beautiful. Thus, if the government will raise higher taxes on cosmetic surgery and related treatments, everything will be more elusive. This is something that should not happen.

Discriminating Women

It was also found out that up to 86% of patients going for cosmetic surgery are women. 91% of them are on the working age group. They have to earn their money first before they can be wealthy enough to afford certain procedures. Even those who wanted simple treatment for spider veins also have to save money just to afford the procedure. Thus, for the government to swoop in and extract more money through taxes, it seems totally unfair.

Fight the Proposal

We must put an end to this plan. Cosmetic surgeons will just pass on the burden to the people. They will not necessarily shoulder the cost of the added taxes. Therefore, people who need treatment will just avoid doing it since they cannot afford it. Tax imposed on cosmetic surgery is definitely not the way to go.

If these tax raise proposals will not push through, then you can check out the best spider vein treatment in Cedar Rapids here.

Are Accident Damages Taxable?

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Taxes are our least favorite thing and the last thing we want is to have to pay more than necessary.  When the time comes to fill in your tax return you are supposed to take so much information into account, put every little thing on the forms and wait for the Canadian Revenue Agency to take what they sees as their fair share.

What about this – you have been in a car accident and, managed to win a settlement from your insurance company or have been awarded a jury verdict. Do you have to account for that money on your tax return? That depends on what the money is for and how it is broken down. Let’s say you’ve been awarded $100,000 and it’s broken down as such:

  • Lost Earnings $20,000
  • Medical Bills $15,000
  • Pain/Suffering $35,000
  • Damage to Property $10,000
  • Punitive Damage $30,000

Now let’s have a look at each section may be subject to tax:

Lost Earnings

If you are liable to tax on regular earnings, you are liable to tax on lost earnings – there’s no getting off this one.

Medical Bills

You will be pleased to know that medical bill payments are free of tax unless you have already made deductions of expenses on a previous tax return and are then reimbursed – that is subject to tax.

Pain/Suffering

Tricky one this, it depends on how you have suffered.  In legal terms, if you are paid out for pain and suffering this is classed as different to emotional distress. Pain and suffering compensation is tax free, emotional distress compensation is not.

Damage to Property

Not taxable provided it is clearly listed as this type of compensation.

Punitive Damages

These are liable to tax because they do not arise from the actual injury but from the behavior of the defendant. Punitive damages are taxed as income.

Legal Help

State laws are very different when it comes to settling for car accidents and there are limits and exclusions that must be taken account of.  No matter how minor the accident may seem, makes sure you hire Toronto car accident lawyers to help you know what your rights are.

Offsetting your Hobby Losses Against Your Income

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We all hate paying taxes but it’s something we cannot get away from. Some people are finding that what started out as a hobby is now turning into a viable business, which means they can claim back taxes off the IRS. Proving it is a business to the IRS is another thing though.

Hobby Businesses

Hobby businesses are normally run from the home and tend to be based around recreational activities. Let’s say you buy a radio-controlled helicopter, just as a hobby to start with. But soon, people are asking you to teach them how to fly theirs. 

Now it becomes a business of sorts.  Now, in theory, you should be able to start claiming money back from the IRS. Proving it is a different matter, especially if it isn’t your man source of income.

Deduct Your Hobby Losses from Your Annual Income

If your business is not profitable, it can become what is known as a tax shelter.  Stick with it because, although it isn’t earning you a fortune, it can be to your advantage if you have a regular job or other income.

You want to buy a new helicopter. You check out the rc helicopter reviews on this website and make your purchase.  Keep your receipt and any paperwork, including that which you get from actually teaching people. There may be a way for you to offset those losses against your income tax bill, which could also put you into a lower tax bracket.

You spend $5,000 setting up your business and sell lessons worth $800. That gives you a net loss of $4200 which you can offset and reduce your taxable income.

Proving It

The biggest problem is proving that your hobby is a legitimate business that is trying to earn a profit.  That is the key word – profit. If you can’t prove it, the IRS will not allow it.  Be a little careful that you don’t use your hobby as a tax shelter too often though – the IRS will notice and they will pay you a visit.

If they do allow you to offset your losses, think about expanding. Research the best remote control helicopter for kids – good information here – and expand your clientele.

Good luck!

The Need to Remove Taxes for Home Services

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When hiring someone to fix something at home, no matter how big or small the problem is, you will still pay a lot. This is true especially if you are hiring a firm to do the job. They will send professionals to help you out and they will charge high fees. Though this sounds like their fault, the truth is that it is not. The amount that you have to pay increases a lot due to the taxes that service firms have to pay to the government. Of course, when they are asked to pay for such taxes, they would have no other choice but to pass on the burden to their clients. They might want to cut back on their service rates, but this will most likely affect the company.

Installation and Repair of Water Heaters

Everyone needs water heaters at home. You need hot water when taking a bath. You also need potable hot water for drinking. This helps a lot during the winter season. Instead of boiling water, you can just get hot water straight from the source. In order to have one, you need to ask a company to set things up. You have to buy the water heater from them or from another company and they will set everything up for you. Over the years, when the quality of the water heater starts to degrade, you would need their help for repair. You might also need maintenance services every now and then to prevent problems from happening.

Imagine the amount that you will pay for installation and maintenance. On average, you will pay around $700 for installation. For maintenance and repair, you can pay as low as $50, but it can go as high as $1,000 depending on the issue at hand. This might sound right, but the truth is that it can still be reduced if only the firms that you have hired don’t need to pay for taxes.

Why Services Should Not be Taxed

There are a lot of products that we pay for with taxes. Services are also included in what is being taxed by the government. If the results are visible enough via public services, it would have been fine. However, if nothing is improved despite the increase in the collection of tax, there is no point in paying for it. Installation and maintenance services are not required all the time. They are only done when needed. Thus, for them to be exempted from taxes won’t necessarily hurt the government in its aim to collect more taxes.

Finding the Right Person for the Job

Since the government will most likely continue their tax collection on services, the least that you can do is to find a company that will help reduce the cost by agreeing on discounts. If you wish to know more the exact water heater installation costs that you need to pay for, please inquire here. On the other hand, if you need to find out water heater repair costs, go ahead and check out http://www.corkd.com/costs/plumbing/water-heater-repair.php.

Using the Internet in Lowering Costs of Doing Business

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There are a lot of things to be said about the internet. For one, it has spawned a lot of free things. Corporations and people now have to think in terms of how to earn on the internet while giving away things for free. Games, and online services are free. Dating and gaming sites are free. On and on, free items are popping up online.

For a lot of us regular folks, what this means is that we don’t need to pay for some things, because they are free. In the grand scheme of things, governments across the world are still trying to come up with ways to collect taxes on things which are bought for free. Of course, they would have to go to the source, where the ones who gave things away are earning money.

Corporations on the other hand, have found a lot of ways to go around and going about their business. The internet has helped corporations big and small in lowering costs. There are open source projects which give out free-licensed software. There are also technologies which leverage existing infrastructure and hardware with to come up with free communications packages or applications which have built-in savings.

For large companies, and for businesses which do business across the globe, communications has been a big help. A lot of international communications are now free, or almost free. Besides Linux OS-based servers, which make use of practically free software, there are mobile apps which are also practically free. These range from Skype and email, to Viber, WeChat and other messaging platforms. Google+ also has Hangouts where a conference call can be run.

For enterprise class solutions, the use of a single trunk line for the whole company is also possible. Even as late as ten years ago, if anyone needed to have a conference call, it had to go through the telecommunications service provider. If anyone called the company, the call sometimes had to be transferred to an outside line, before getting to a different department. These days, an SIP trunking facility can be installed where the call can be transferred to another building, department or an office in another state, without the need for an outside line. SIP trunking makes it seem that the call is internal. This makes everyone within the company accessible from one trunk line.

Why Building Construction and Improvement Should Not Be Taxed

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Taxes should be abolished completely for the simple reason that governments are able to earn from other sources. There’s simply no point in taxing people for everything they do and whatever they consume and then taxing them from their income, taxing them for the land where they built their houses on and even taxing them when they inherit something when their parents pass on.

If you think about it, taxing sets a bad example. It teaches citizens to be lazy. Instead of thinking of ways to generate revenue or earn money, the simple solution would be to just skim off the top. People are earning anyway, so why not just tax them? People are buying food and coffee everyday, why not make them pay a little more in taxes?

Taxation started thousands of years ago, during the age of kings. They needed money to fund their lavish and ostentatious lifestyles and began taxing their people for everything: land, animals, produce etc. The system was reformed many many years later, but not totally abolished. It was made to sound more humane by placing a cap and standardizing how much people can be taxed.

There are also income brackets which determine how much you would have to pay the government depending on how much you make. Exceptions are given depending on the number of children you have or if you are a company, based on your losses and other factors.
One thing that amazes me is why building supplies as well as construction equipment are still taxed? If you’re building a public library, there should be no taxes on the materials and the construction company. Even if you make an online purchase from there will still be some form of value added tax that will be paid at the check out.

Buildings constructed for public use should not be taxed because they are meant to service the public. In much the same way that the builders who worked on them should not be taxed for doing public service. Think about it: charities do not get taxed because they do good work. The same principle should be applied to buildings.

Tax Deductions That Businesses Can Take Advantage Of

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Managing your own business is not easy but it’s fulfilling. Aside from the time and effort that you need to give, you also need the money to keep it running. With proper management, you would be able to get your expenses back and start earning. There are also taxes that you need to pay. However, there are also deductions that you can take advantage of so you can lower the amount that you pay for these taxes. Here are some of them.

Office Rental

You can easily rent an office space in different areas around the US including San Francisco. They come in varying sizes and costs. Did you know that you can actually get a deduction on your rental? Any property that you rent for business use is tax deductible. However, this is not applicable if you’re going to receive a title or equity on the said property.

Transportation Expenses

As long as it’s business related, the amount that you spend for going to another place to attend a business related function or meeting can also be deducted. Whether you use public transportation or drive a vehicle for this, the expenses incurred can be included on the tax deductions. This does not cover the daily cost of having to commute or travel from home to work.

Hotels and Meals

Like transportation expenses, the amount that you spend on hotels and meals while on a business related activity can also be added on your deductions. Entertainment is also included, as long as the meeting took place during the event. If the meeting came before or after the event, you are still entitled for a deduction but only 50 percent of the expenses incurred.

Benefits of Employees

Companies provide various benefits to employees, which are also tax deductible. Some of these include employee discounts, education and dependent care assistance, life and disability insurance, health insurance and retirement plans.

Office Supplies

Running a company requires the use of different office supplies including papers, pens, folders, etc. Even these supplies can also be added on your tax deductions.

Make sure to keep the receipts on these deductibles so you can have the needed proof and references.

Another Reason Why Taxes Should Be Removed: Tax Deduction Cases

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While many economists and policymakers are raving about the benefits of taxation for a country’s development and economy, the use of taxes for the people is another matter altogether. Because of rising taxes in recent years, increasing debt for students struggling to finish their education, and rising healthcare costs in the US, my initial stand is to question the use and purpose of such public money under the grip of a government that benefits from a capitalist and profit-driven economy. Whether they say you can pay your taxes through credit cards from Newcastle Permanent or through hard-earned cash, there has to be some explaining to do on how this affects the quality of our lives in the long run. It even permeates to the simplest things in our life, like simply buying necessities at the grocery.

Just recently, my list of reasons on why I believe taxes should be removed has just been added with one more: tax deduction cases that are valid and legal in the United States. It is pretty absurd to think that while students should drown underneath their own debts for an education that is overpriced, individuals who do business activities can profit not only in money but also in tax deductions. Take the example of a junkyard owner who fed stray cats in order to keep mice away from his business, and managed to pass cat food off as a business expense for deductions, or the business trip of an owner to Africa because it was necessary for his business. Heck, even lawn care services can be deductible!

Thanks to the IRS that has the authority to approve such deductions, it appears that you can only get a (little) break from taxes if you’re either ill with a certain sickness or rich from making money from your business. Certainly, someone can explain to us why a man with arthritis can get tax deductions for installing a pool at home, but a sick contractual worker of color needs to pay taxes and pay for their healthcare because they aren’t regularly employed with benefits.

Oh, taxes – what would you do with them.

3 Reasons that Taxes Should be Exempted on Entrepreneurial Ventures

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Statistics reveal that the number of entrepreneurial ventures is far lesser than employed individuals in the US. In terms of general economic growth of the country and the living conditions of a common man, having lesser entrepreneurial ventures is a bad sign. With the growth of small and medium enterprises a rise in employment opportunities and better living standards can be expected. However, one of the major reasons of reluctance in initiating a personal venture includes the uncontrollable expenses such as taxes. People fear that they would be subject to a high percentage of taxes that would chop away a large sum of their revenues leaving little room for profits and growth. Here are 3 reasons that taxes should be exempted on entrepreneurial ventures. 

Less Time Needed for Stability
Most businesses are initiated with a capital injection that comes via loans from financial institutions or debts from friends and family. The lesser amount of deductions in the form of taxes and expenses, the greater would be the chances of the venture stabilizing in a short time span. Many entrepreneurs are basically people who are passionate about a particular product or service and want to earn a living through their passion. Getting stable as quickly as possible decreases the chances of getting into a tight financial spot. 

Chances of Business Growth Increase
For a business to grow, it first needs to strive through the initial time frame of struggling and settling down. This is done by building a strong and loyal client base that ensures a consistent amount of business every season. Taxes refrain entrepreneurs from growing quickly, the amount that is deducted in the form of taxes can be invested in growth and expansion plans instead. For example, if a business plans to export its  product to a country or city where a high demand exists, it would need to invest in shipping containers, freight charges, marketing expenses etc for its successful launch. Taxes decrease the financial flexibility of investing and growing in a small period of time. Some of the expenses are controllable such as the shipping container sizes (visit http://www.usedshippingcontainerhq.com/shipping-container-sizes.php for a size list) or the cost benefits in used shipping containers that can be seen here at Used Shipping Container HQ. But most of the other costs cannot be reduced, hence, decreasing the chances of business growth. 

Increased Confidence and Flexibility
If the government releases all kinds of taxes on small and medium enterprises, the pressure of conforming and paying a huge chunk out of moderate earnings is relaxed automatically. This increases the level of confidence that an entrepreneur practices and the flexibility in managing a newly established business. There should be an upper limit to the business income after which taxes should be applied. Otherwise, high level of taxes would keep discouraging extremely talented and creative high potential entrepreneurs from laying the foundation of their personal ventures. Taxes decrease the flexibility of a business to thrive through seasons where lesser amount of sales takes place. For a thriving business, the entrepreneur should be given enough leverage to feel confident about his/her growth plans and reduce burdens on them such as different kinds of taxes. 

Major Expenses in Putting Up a Business

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Putting up a business venture requires a lot of money. Apart from the major requirements to make a business legitimate, there are the business taxes to think of. Taxes have always been the number one problem of most people, especially those who are not in favor of it. For a lot of people, collecting taxes on almost everything is not acceptable. However, the government will continue to impose tax, no matter how much people demand for its removal.

The primary expenses in putting up a business include the location, equipment and the staff. Regardless of what type of business it is, these three are always on the list. To give a better explanation, let us use a cosmetic surgery clinic as an example.

  • Location – this is where the business will operate. It has to be in a prime location that is very accessible to clients. It has to have enough rooms to accommodate an examination room, laboratory, lounge, physician’s office, operating room, and recovery room. The interior design of a surgical clinic is very important to keep the patients calm and stress-free. Independent surgical clinics normally start with a very small capital but still have to invest in a good location.
  • Equipment – medical equipment is known to be really expensive. They require major initial investment but this can be recovered in time. Regular maintenance must be considered, though. For a business owner with a smaller capital, some second-hand equipment could be considered. For used cosmetic laser for sale, check this website.
  • Staff – hiring professionals are likely to cost a lot of money. They spent a considerable amount of time and money for their studies so it is understandable that they should receive a higher salary.

These three primary components of a cosmetic surgery clinic all require the payment of taxes. What irks most business people is the fact that they still have to pay sales tax for second-hand equipment, which in the United States is dependent on the state where the sale happened.

It may be everyone’s dream that one day, taxes would not exist anymore. But of course, the effect of removing sales taxes will definitely reflect on the economy. It seems too good to be true, but maybe one day the government will finally find an alternative to fund government institutions without giving citizens the burden of paying taxes.

Home Construction Expenses and Tax Deductions

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While building your own house is a testament to your hard work and realization of one of your dreams, it could be a source of headache because of all the things that go with it. The price of construction alone is such a burden. Taxes is another headache. Ever since a construction tax has been imposed by the government, a lot of people are opposed to the idea because for them, paying taxes while building a shelter, which is a basic necessity, is unfair.

Building Expenses

Installation fees for water, drainage, and electricity are the most common expenses when a house is built. Water and electricity are necessities that cannot be ignored. The drainage system is also important for the proper disposal of waste water and preventing water accumulation, which can cause flooding.

Purchasing high-quality construction materials seem like an impossible goal, especially if the homeowner does not earn that much money. However, there are alternative materials that are not only cheaper but sometimes, much better than costly building materials. One only need to devote some time for research.

Roofs and walls secure the entire household and this is where the bulk of construction expenses go.  Today however, there are more choices of roofing materials, in various colors, style, design and cost. For reliable and affordable roofers, visit this website and check out the other services they offer. Roofing material suppliers are always ready to discuss the various benefits of the different styles of roofing materials, whether you want a shingle roof, a tile roof or a metal roof. They should be able to give you the best material option based on your climatic location, the style or design of your house and your budget. For roofing costs ideas, check this site.

Home equipment and furniture should be on your list. Experts say that interior design and home antics are the life source of a regular house, which makes it a home. Ensuring the comfort of every one living in the house makes your decide on what items would be good investments.

Tax Deductions

Paying taxes for home construction is one of the major burdens of citizens these days, but there is a silver lining. Tax deductions are designed to help people balance the cost of their new house.

The Energy Efficiency Tax Credit is given to homeowners who are also their own contractors. The house must provide at least 50% energy-efficiency improvement, based on the criteria set by the 2004 International Energy Conservation Code. Use of insulation materials, exterior doors and windows and pigmented metal roofs designed to minimize heat are just some of the primary contributors of an energy-efficient home, which could also qualify you to energy efficiency tax credits.

Using solar energy system may also aid the homeowner in getting tax deductions. Thirty percent of the cost for solar energy installation could be reimbursed from the government if the system has been installed not later than the last day of December 2016.

While tax deductions can lessen the home construction costs, people still are not happy with the thought of paying housing taxes. Not everyone is eligible for tax deductions, though, which many people think is does not make sense.

With Lesser Taxes, Plastic Surgery Would be More Affordable

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Contrary to popular belief, people do plastic surgery not just for vanity. Many people do it for self-improvement and to boost their confidence. Others do it for health reasons. However, due to high taxes imposed on these procedures, a lot of people cannot afford them. To make it worse, the new health care bill included a provision that would require an additional 5% tax for cosmetic surgery. According to them, it will help boost the collection of the funds required by up to $5.8 billion. Given how expensive the health care system is, this would help a lot.

However, American surgeons responded to this by saying that it is actually unfair and discriminatory. The truth is that this will just impose more bias to women. A majority of plastic surgery clients are actually women, ranging from ages 19-64. This 5% additional tax will make it even more difficult for them to afford the procedure. Based on statistics, over 50% of those who wanted to go for plastic surgery are just within the $30,000-90,000 annual income bracket. Only 10% of them are above the $90,000 annual income group. Thus, it only proves that these taxes will further discriminate women who earn less as they can’t afford the procedure even more.

In Korea, the cost for plastic surgery is said to be a lot cheaper compared to the US. However, with the increase of the popularity of cosmetic procedures, the government has promised to increase taxes on those procedures. They have not spared even smaller treatments such as hair removal or hair implants. Even the procedures that are obviously done for health reasons are also included in the VAT proposal of the government. The main reason why they do it is that they believe that the said tax won’t stop Koreans from having cosmetic surgery anyway.

Everything Could Backfire

Both the American and Korean government think that these additional tax proposals would actually help them increase their revenues. However, surgeons have already expressed their sentiments that these proposals could actually backfire. Instead of creating positive results, they could even make things worse for the government. The current price for cosmetic procedures is already expensive for many people. If we add these taxes, it could even get worse.

This reality is so sad given the fact that these procedures can actually be made cheap. Take for instance the cases of Thailand. Even if people have to spend money for airfare going to Thailand, they will still take that risk since the price of cosmetic procedures in this country is way cheaper. Sadly, not all surgeons in Thailand are well-experienced and could offer quality services. Thus, more people at are risk simply because they were driven off from their own country given the high taxes imposed on these procedures.

Rest assured, if you are looking for a plastic surgeon Denver, you can still find an affordable one here. If you are in South Jersey and are looking for a plastic surgeon, then you can visit http://cornerstoneplasticsurgery.com/meet-dr-fred/.