If you have filed for exemption with the IRS for a nonprofit you are starting and your status is pending while they review, I understand that you can still solicit donations and generally when your exemption is granted your exempt status applies retroactively to your date of incorporation. But how are the donor's charitable contributions treated? Can they deduct the tax year they donate or do they have to wait until the tax year in which exemption is granted (if the pending period lasts until a new tax year)? Or is it also retroactive and they would have to amend their previous tax return once the nonprofit gains exempt status?
posted on Jul 21, 2008 - 8 answers

Can Canadians give tax-deductible donations to American non-profit organizations? [more inside]
posted on Dec 18, 2007 - 2 answers

It's time to submit my out-of-pocket medical expenses to my employer for reimbursement under the pre-tax medical account program. All my receipts are for psychotherapy, psychotropic medication, and other indicia of mental illness. Is it professionally "safe" for my employer to have this stuff? [more inside]
posted on Jun 26, 2007 - 15 answers

I recently found out that when filing my tax returns I can deduct interest paid on my student loans. My question is if I have to file my request for a deduction the same year I pay the interest, or can I wait a couple years to actually take the deduction? Here's the twister: I'm a dependent. Can I make interest payments now and deduct them from my taxes a few years down the road when I'm an independent. Does being a dependent bar me from currently taking a deduction? Thank you...I really appreciate any help.
posted on Oct 1, 2006 - 11 answers

I'm trying to make my new web project legal in California. After reading through the Nolo press book(s), we thought that perhaps the LLC was the best corporate structure (we are going to issue stock and give the primary developer a portion in lieu of payment). While the Federal government taxes LLCs like sole proprietorships - you aren't taxed unless you make profit, and I don't see our profit outpacing our costs for a year - the State of California charges an LLC "tax" (really a fee) of $800, due almost immediately after your incorporation paperwork goes through, so... [more inside]
posted on Sep 8, 2006 - 9 answers

If I use my sister's college-student discount to by computer products at a reduced price, but claim them as expenses for my home business, will anyone care? [more inside]
posted on Mar 29, 2006 - 18 answers

What's wrong with this logical deduction? [more inside]
posted on Feb 18, 2006 - 16 answers

Can my mother, a corporate travel agent, deduct the cost of her digital camera (as a unreimbursed work expense) since she is no longer deducting film & processing costs? [more inside]
posted on Mar 7, 2005 - 2 answers

TaxFilter: A co-worker and I both recently relocated and received a relocation allowance. Anything above the cost of the move (excess reimbursement) we were allowed to keep. I know that the excess is taxable income. My co-worker feels that the relocation allowance is like our Meals and Incidental Expenses per diem, we didn't spend all of the allowance, so we get to keep the balance treating it as non-taxable income.

How can I simply explain the difference between a per diem and an excess reimbusrment to him? I've showed him relevant IRS documentation such as Publications 17 and 521 to no avail.
posted on Feb 5, 2005 - 5 answers