Medical & Dental Expenses

After spending the weekend playing in the dirt at Quartsite Arizona, along with thousands of other motorhomers, I am back at my desk today, and loe and behold a tax tip from the IRS just came to my computer.  I always wonder if the IRS highlights certain areas that they know they will be looking at closely on these tax tips or ????  Anyway I thought I would list their six points aboue medical and dental and you can make up your own mind.
1. In 2010 you can only deduct the amount by which your total medical expenses for the year exceed 7.5% of your adjusted gross income.  This calculation is on Schedule A of Form 1040.
2. The medical expenses you can include are the qualified medical expenses you pay for yourself, your spouse and your dependents.  If you share custody of a child you can deduct only the amount that you pay out of pocket for the childs medical expenses.
3. To deduct a medical expense for the tax year 2010, it needed to be paid in that year.  If you have an expense and are reimbursed for some of it you cannot include the reimbursed part of the expense.
4. Medical expenses include payments for the diagnosis, cure, mitigation, treatment or prevention of disease, or treatment affecting any structure or function of the body. If you have prescription drugs the cost of them can be deducted, plus any insulin paid for which does not require a prescription.
5. You can deduct mileage or other transportation costs which are primarily for and essential to medical care that qualify as medical expenses The actual fare for a taxi, bus, train, or ambulance may be deducted. If you use your car you can deduct the actual out of pocket expense or you can deduct the standard medical rate for medical expenses.
6. Distributions from Health Savings Accounts, and withdrawals from Flexible Spending Arrangements may be tax free if you pay qualified medical expenses.

If you want more information on deductible medical expenses please visit the IRS website at www.irs.gov and look for publications 502 and 969.

Traders Accounting Seminars Are Moving To The Web

Traders Accounting, the largest online resource for day trading and advice on tax planning, announced they are going to put their popular accounting seminars online. The first will be discussing the biggest mistakes investors made in 2007 and show individuals and company's how to correct them for next year.

For more information on the June webinar, visit the accounting seminar's page or contact Ryan Gibson at 1-800-938-9513.

Tax Advice For Day Traders

Traders Accounting has changed the free 45 page Tax Action Plan developed by top tax deduction consultants to help individual day traders and business owners. Each Tax Action Plan is customized based on people tax situations and helps prepare for the upcoming tax season.

The free Tax Action Plan offers advice for day traders saving time and money by using this in depth plan. Each report is customized and targeted to the individual’s objectives and accounting needs. To get started, please visit www. http://tradersaccounting.com/tax-plan.php.

Here's an excerpt from an article on taxes on day trading from Smart Money magazine:

DO YOU TRADE STOCKS more often than most people change their socks? Then you need to understand how Uncle Sam views your habit. Otherwise, come April 15, you'll be suddenly confronted with a mountain of paperwork. And those profits? Well, they'll seem a lot smaller once the Internal Revenue Service has taken its share.

There are, however, some strategies that active investors can use to reduce their tax bills — and make life much more pleasant come tax season. Here's what you need to know about them.

Trader vs. Investor

In the world of taxes, "trader" and "investor" each has a special meaning that carries with it some pluses and minuses. Most individuals — even those who trade a few times a week — are, by the IRS's definition, investors. But if you spend your days buying and selling stocks like a hedge fund manager, then you are probably a trader, a title that can save you big bucks at tax time. How? By allowing you to fully deduct all your investing expenses, such as newsletter subscriptions, your home office and your computer equipment.

So what are you, you ask, a trader or an investor? This is one of the fuzziest areas of our fuzzy tax code. "The question is clear; the answer is not," says an IRS spokesman. The only way to define your status is to go by the guidelines laid out in several court cases that have addressed the question.

The courts say you are a trader if:

· You spend lots of time trading. Preferably, you don't have a regular full-time job. (My reading is, you can also be a part-time trader, but you had better be buying and selling a handful of stocks just about every day.)
· You have established a regular and continuous pattern of making lots of trades (several almost every day the markets are open).
· Your goal is to profit from short-term market swings rather than from long-term gains or dividend income.

If you think you qualify and want to know the nitty-gritty of the rules, see More Tax Tips for Day Traders. If you're not so sure, here's how I think these court cases apply to the real world. Say you spend 10 hours a week trading and total about 200 sales a year, all within a few days of your purchase. In my book, you're an investor, not a trader. You are not spending enough time or trading often enough to satisfy the IRS. How about 20 hours a week and 1,000 short-term trades? I think that amount of time and trading gets you there. If you spend 30 hours a week, make 5,000 short-term trades a year and don't have a full-time job, even the IRS should agree without a fight. If you choose, you can actually be both a trader and an investor. You must segregate your long-term holdings by identifying them as such in your records on the day you buy in. Then they won't "taint" your trader status.

For advice that pertains to your particular situation, and many more services exclusively for day traders, trust the day trading tax experts at tradersaccounting.com.

CEO, Jim Crimmins Offering Tax Planning Advice in Irvine, CA

Jim Crimmins, CEO of Traders Accounting will be offering timely advice on tax planning to attendees of their upcoming day trading training seminar on January 24^th in Irvine, California at the Online Trading Academy. These seminars are great for individuals who are experts in day trading or thought looking to starting up a day trading business. For a future schedule of day trading training seminars visit Traders Accounting.

Supreme Court Limits Trusts' Tax Deductions

The Supreme Court upheld limits Wednesday on income tax deductions for trusts and estates, ruling against the family that created Pepperidge Farm.

The court said trusts ordinarily may not deduct the full cost of investment advice on their income tax returns. Those expenses are deductible only when they exceed 2 percent of adjusted gross income, the same limits faced by individual filers, Chief Justice John Roberts said for a unanimous court.

The case arose over a relatively small tax dispute, $4,448, involving the income tax return filed by the trust established by the will of Henry A. Rudkin, former chairman and founder of the Pepperidge Farm company.

The trust was funded with the proceeds of the sale of Pepperidge Farm to the Campbell Soup Co. The trust had $2.9 million in assets and $625,000 in income in 2000, the year of the disputed return.

The trust reported that it spent $22,241 on investment advice and deducted all of it on its tax return. The Internal Revenue Service said the expenses could be deducted only to the extent they exceeded the 2 percent floor. The discrepancy was $4,448.

The trust sued in U.S. Tax Court, which ruled for the government. The 2nd U.S. Circuit Court of Appeals affirmed the ruling.

The case is Knight v. Commissioner of Internal Revenue, 06-1286.

Trends and Successful Tips for Day Traders

Traders have very different styles as to how and when they make their trades. However, there are trends and patterns that day traders can find helping them become successful at day trading. According to 123 Sensex, they list 20 rules for day traders and explain what day traders should be on the look out for.

At Traders Accounting, we always want to help offer the best advice on tax planning, and with day trading. We will keep you up to date and informed on the best ways day traders can experience the maximum gains on their investments.

Day Trading Advice From The Experts

Traders Accounting introduced their new Tax Action Plan, to help day traders with advice on tax planning from professional tax deduction consultants. Each customized tax action plan outlines strategic planning for all those seeking expert day trading advice. To get started, please visit TradersAccounting.com.

“The best day trading advice we offer is to traders who have implemented a plan prior to tax time of the upcoming year, something so simple can save people time and money,” said Jim Crimmins, President of Traders Accounting. “Our clients look to our tax deduction consultants for the best strategy in tax preparation throughout the year, asking questions and helping with decisions.”

Seek Expert for Advice on Tax Planning

With the U.S. Department of Treasury changing laws so frequently, experts are needed to ensure the proper tax deductions are taken. Tax preparation for day traders and investors are different than many and investors could be missing several opportunities causing them to overpay Uncle Sam.

Traders Accounting, the largest online resource for day trading advice and day trader tax preparation, is offering a free tax action plan for this upcoming tax season. The in-depth report is reviewed by tax deduction consultants and offers day traders advice on tax planning.

Stock Market Seminar Helps Educate Traders

Traders Accounting will be hosting a three day stock market seminar on November 27-29, helping to educate traders will all their financial needs including advice on tax planning. Each attendee will have access to personal book keepers, professional tax departments and business consultants.

Registration has already begun as seats are filling up fast.