3 Percent Itemized Deduction Phaseout Rule

Taxpayers with adjusted gross income (AGI) above a certain amount may lose part of their deduction for personal exemptions and itemized deductions. The provision began in the early 1990’s and is set to be repealed in 2010. The itemized deduction reduction originally called for reducing your deductions by 3% of the amount that your AGI exceeds the threshold amount.

Beginning in 2006, the overall limit on certain deductions was gradually eliminated. Under this phaseout rule, the limit was reduced by one-third in 2006 and will be reduced by one-third in 2007 so that the 3% phaseout is reduced to 2%. In 2008 and 2009, the 3% phaseout will be reduced to 1%. The reduction will be eliminated in 2010.

For 2007, the amount you can claim as a deduction for exemptions is reduced once your AGI goes above a certain level for your filing status. The threshold is indexed annually for inflation.

These levels are as follows:

Married filing separately – $117,300.

Single – $156,400.

Head of household -$195,500.

Married filing jointly – $234,600.

Qualifying widow(er) – $234,600

You must reduce the dollar amount of your exemptions by 2% for each $2,500, or part of $2,500 ($1,250 if you are married filing separately), that your AGI exceeds the amount shown above your filing status. However, you can lose no more than 2/3 of the dollar amount of your exceptions. In other words, each exemption cannot be reduced to less than $1,133.

You may ask, “Am I subject to this limit?” The IRS deems you subject to the limit on certain itemized deductions if your AGI is more than $156,400 ($78,200 if you are married filing separately). Your AGI is the amount on Form 1040, line 38.

The following deductions are subject to the overall limit on itemized deductions:

1) Taxes

2) Interest paid

3) Gifts to charity

4) Job expenses and certain miscellaneous deductions

5) Other miscellaneous deductions (excluding gambling and casualty or theft losses)

The following deductions are NOT subject to the overall limit:

1) Medical and dental expenses

2) Investment interest expense

3) Casualty and theft losses from personal use property

4) Casualty and theft losses from income-producing property

5) Gambling losses

You can use the Itemized Deduction Worksheet in the instructions for Schedule A (Form 1040) to figure your limit. You will enter the result on Schedule A (Form 1040).

You should compare the amount of your standard deduction to the amount of your itemized deductions after applying the limit. Use the greater amount when completing Form 1040, line 40.

To determine how to figure your limit and see examples visit www.real-estate-owner.com/itemized-deduction-reduction.html.

Also, to see an example of a worksheet used to determine what you can deduct, visit www.real-estate-owner.com/itemized-deduction-reduction-worksheet.html.

Free Gambling Strategies – Professional Guide

Free gambling strategies are finally here! Most of the gambling strategies on the internet today come at a price, and usually don’t get your money’s worth, and end up wishing you had not bought it!…But This Site has helped change this, because they’ve gathered all of their knowledge from the “masters” and combined it all into one amazing free source. There have also added their personal experience, and have added their tips and comments – that they have successfully used on the casinos reviewed for years! They also state that:”The online gambling strategies featured on this site are our top recommendations, which are based on our gambling experiences with them and various online reports by respected online gambling authorities. We ONLY feature reputable online gambling casinos, as we want our visitors to have good online gambling experiences.”They State that the Site’s Goal Is:”…To provide the most unique and profitable strategies to help anyone dramatically improve their online gambling success rate (what ever standard you are at) by implementing these strategies over and over again.”They also Review all the top Online Casino’s about today, by describing their software, games available (e.g. Poker, blackjack, slots etc), bonuses (When signup to casino – example being $400 signup bonus), and give ratings out of 10 for the whole overall performance and experience.The Gambling strategies covered are: Poker Strategies, Blackjack Strategies, Slot Machine Strategies, Keno Strategies, Craps Strategies, Roulette Strategies, Baccarat Strategies, Caribbean Stud Poker Strategies & Video Poker Strategies. These each have individual pages, each Strategy page is easy to follow and contains examples of strategies and ways to keep track and maximise earnings plus rules, odds of the game, and links to the top Online Casinos and Free casinos.

The Anatomy of a No Deposit Bonus

An enticing part of playing at online casinos is the abundance of no deposit bonuses offered that allow you to play for real money and give you the chance to win real money, without risking any of your hard-earned dollars.Of course one thing you’ll need to understand is the different types of no deposit bonuses offered by online casinos. Each bonus has its own charm and each one allows you the possibility of winning real money without requiring a deposit. That is why it is essential to know the difference between different types of bonuses; what we call the anatomy of a no deposit bonus.THE BASIC NO DEPOSIT BONUSThe basic no deposit bonus is the most popular type of free cash available at online gambling sites. Typically on offer when signing up, these bonuses are absolutely free cash that the site uses to entice players to sign up at their site. Essentially, it’s a marketing tool. But it is a marketing tool that gives you the chance to put some money in your bank account with no risk at all.Every basic no deposit bonus will have a set of terms associated with it that must be fulfilled before cashing out your winnings is permitted. Wagering requirements are standard and work like this: If a casino gives you $20 free, you may be required to wager that bonus 50 times before you can cash out any of your winnings.In addition, a very standard set of rules for these bonuses is to have a minimum and maximum cash out amount. For example, with your $20 No Deposit bonus, you may be allowed to cash out between 5x the bonus up to 10x the bonus. This means that once you’ve completed the wagering requirements, you can cash out your winnings if you have between $100 (5 x $20) and $200 (10 x $20).THE FREE PLAY BONUSThe free play bonus plays out a little differently than a basic no deposit bonus in that they have an additional set of rules and criteria that must be met before a cash out is granted.You’ll typically find that these bonuses give a larger amount of free money but have a time limit restriction. For example, you may get $1,500 Free for 60 minutes. Now, the key to this bonus is that within 60 minutes of activating your free play bonus, you must complete the wagering requirements and meet the minimum/maximum cash out requirements, if any. These bonuses are a lot of fun but more challenging than basic no deposit bonuses because of the time limit.Sometimes the free play bonus is set up in a multi-stage sequence where after meeting the requirements of the first stage, your bonus winnings will be carried to a second stage. In the second stage, you are normally required to make a nominal deposit to claim your winnings and this second stage might have additional requirements.WHAT’S THE SECRET?There must be a secret to getting free cash right? Well, no! The only requirement to getting your bonus at an online casino site is to find your no deposit code and then sign up with the casino offering that bonus. After that, the bonus you saw advertised will be awarded to you. Of course there are different ways to claim your bonuses.For instance, as soon as you sign up with a Rival Gaming casino, your bonus will be automatically granted to your account. This software provider doesn’t use bonus codes so it’s extremely easy to get your free cash.RTG casinos (Real Time Gaming) are different in that you have to redeem your bonus with a coupon code in the casino cashier. If you have the code, it’s really easy to copy and paste into the bonus claim area.And really, that’s all there is to it! With both the basic no deposit bonus and free play no deposit bonuses you increase your chances of winning real money without risking any of your hard-earned dollars. Not only does signing up with casinos get you free cash, but most casinos will keep rewarding you with additional free money and deposit bonus offers. It’s a win-win!

The Choices in Online Casino Gambling

The development of the internet has transformed the web into a virtual casino. Players can play different games and make some money from it.One of the conveniences that online gambling has given to players is that there is no need to travel anymore. The person can play this for hours just sitting at home.Since there are many sites to choose from and not all play by the same rules, it is best to check these out first before deciding to play. Some sites work in favor of the player so a lot of incentives and bonuses can be acquired by just shelling out a little cash. This is something the land based casinos don’t do often which has made more people decide to play online.Another benefit of online casinos is that the player is allowed to play for free for a few rounds. This will give the person time to get the feel of the game before deciding to sign in. Land based casinos also don’t provide that opportunity. The only thing that a player can do is watch other people play before deciding to join in the action.There are a lot of online casino games that the player can choose to play. How the game is played is the same but the odds and percentages of wins will really depend on the site.Here are some of the favorites and how the rules differ from land-based casinos;A good example is online poker. In this game, the traditional rules of the game are enforced. The game normally starts with blind bets before the cards are dealt.The difference between land-based poker and online is that here, the player does not know the value of the cards that have been issued. The game begins at this point with the objective of making the most money.The cards are given to the players which lasts several rounds. In the course of the game, more cards are dealt. The money goes to the last player standing should the rest fold somewhere along the game or just like the regular game, who has the highest hand, wins.One of the basic games that anyone can play is blackjack. How to win is still the same which is getting highest hand without going over 21. The rules enforced by online casinos is also different. The bonuses that are given may or may not be cashable. Some of these sites also allow the person to qualify for receiving bonuses while some don’t.The betting requirements for this game are also different. This determines how many times that a person has to bet before being allowed to convert those winnings to cash.A simple game that does not require the player to shell out a lot of cash is online slots. This game requires the player to put in a quarter before being allowed to pull on the lever. Slots online has changed the lever with a click of the mouse. Money has to be deposited first before the person can play.Before playing, it is best to read the rules. Some give incentives even at the start of the game. The choice of which game to play is up to the player. After all, gambling is all about chance.