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Inheritance Tax

Something which is called an inheritance tax or in other terms an estate tax is a levy paid by a person who inherits money or property or a mostly a tax on the estate including money and property of a person who has died or passed away. In the international tax law, there is a distinction between an estate tax and an inheritance tax. Basically, an estate tax is assessed on the assets of the deceased, while an inheritance tax is assessed on the legacies which is then received by the beneficiaries of the estate. However, this distinction may not always be respected in the language of tax laws. For example, the so called “inheritance tax” in the United Kingdom is a tax on the assets of the deceased, and will then therefore be , strictly speaking, a type of estate tax. For historical reasons, the term death duty is still actually used colloquially but not legally in the United Kingdom and some Commonwealth countries to refer to the estate tax as well.

No inheritance tax has actually been recorded for the Roman Republic, despite abundant evidence for testamentary law. The vicesima hereditatium or the twentieth of inheritance was levied by Rome’s first emperor, Augustus, and this was done in the last decade of his reign. The 5 percent tax which is applied only to inheritances received through a will, and those close relatives were exempt from paying it, this was including the deceased’s grandparents, parents, children, grandchildren, and siblings. The question asked then of whether a spouse was exempt is complicated. Usually from the late Republic on, husbands and wives kept their own property mostly separate, since a Roman woman had remained part of her birth family and not under the legal control of her husband. Roman social values which are regarding marital devotion probably exempted a spouse as well. Estates which are below a certain value were also exempt from the tax, according to one source, but other evidence would then indicate that this was true only in the early years of Trajan’s reign. The revenues from the tax had went into a fund to pay military retirement benefits or the aerarium militare, along with those from a new sales tax or the centesima rerum venalium, a 1 percent tax on goods sold at auction. The inheritance tax is then extensively documented in sources pertaining to Roman law, inscriptions, and papyri as well. It was part of one of three major indirect taxes levied on Roman citizens in the provinces of the Empire.

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Weird tax deductions

It has been said here that some tax deductions may or may not make yours look dull. It may seem as if these tax deductions are weird and a little bit different from the rest, but i assure you they are at least funny. I guess in some cases it may be okay for dull to be good like on your tax returns, but if your facts end up to then be right and you feel like going out of the box, these are some additional weird deductions taxpayers managed to spread the word about.

Free Beer is something which is in a promotional scheme that probably would not be attempted today, the owner of a gas station had actually decided that patrons would rather have beer than trading stamps. He then deducted the beer as a business expense. The IRS had after denied the deductions and he went to Tax Court where the court ruled the deductions were then considered as acceptable and proper.

Home Design Costs are included here as well. Home office deductions are notoriously scrutinized and looked down upon so it might then surprise you to find that someone deducted the costs of your home design and decorating. See your bathroom if it needs some fixing up. But then if you are able to meet the special hurdles to claiming home office expenses, you can as well. In Langer v. Commissioner, a sole proprietor regularly met clients in his home office.

He then kept up the place in part to make it suitable for that use. It was beautifully created and it was decorated to the nines. It was not at all deductible, but when the IRS had then denied his deductions he was able to prevail in the ever so famous Tax Court. The court had then said that he could deduct part of the costs of landscaping and the property coinciding with the part of the home he used for business as well. The court even allowed a deduction for a portion of the costs of lawn care and driveway repairs as an inclusion.

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Tax deductions 101

What is tax deduction exactly? So tax deduction is actually a reduction of the income which is subject to tax, for various items, especially things that include expenses incurred to produce income.

It is often pointed out that the deductions are subject to some limitations or conditions as well. A deduction which is from gross income that arises due to the various types of expenses which is incurred by a taxpayer. You must know that these tax deductions are removed from taxable income and then adjusted gross income, and thus lower the overall tax expense liability. Usually, different regions would have different tax codes which would allow a variety of expenses to be deducted from this taxable income. The tax deductions we talk about are often used to entice taxpayers to be able to participate in programs which have a societal benefit. An example of this would be, charitable donations and the expenses which are incurred to make one’s home more environmentally friendly can sometimes be deducted from the taxable income.

There are actually a lot of systems which reduce taxable income for personal allowances or even provide a range of income which is subject to zero tax. To add to that, some systems allow deductions from the tax base for items and the tax levying government would desire to encourage. Some systems would even distinguish these things among types of deductions for example something like a business versus a non-business.

For some of these non business sectors, many of the systems would allow a deduction for loss which is done on sale, on exchange, or on the abandonment of both business and non business income, which are what is producing those assets. This deduction though, may be limited to gains which are from the same class of assets. In the U.S. For example, a loss on non business assets would be considered a capital loss already, and deduction of the loss would then be limited to capital gains. Also another example is, in the United States, a loss which would happen on the sale of the taxpayer’s principal residence or some other personal assets would not be allowed as a deduction except to the extent due to things like casualty or theft.

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