Income tax is a personal tax levied on all income and wages. Different amounts and types of income are subject to difference kinds of regulations from the IRS. Learn more here about different situations involving income tax from the articles, blog posts, radio shows and videos.
Accountant Steals Refund Checks
A tax filer has an accountant "friend" who filed tax returns but had the money deposited into his account. The accountant is likely guilty of fraud for stealing the tax returns. The filer should contact the IRS immediately and learn to file their own taxes for the future.
Tax Deductions: Who Should Own Primary Residence
Does it make sense to have the title to a primary residence held by a limited liability company (LLC)? If your LLC owns a primary residence you may lose various tax deductions. It may also be more difficult to obtain favorable mortgage financing because a property owned by an LLC may be considered an investment property.
Using Tax Software To File Your Return
If you think you might like to use tax software to prepare your taxes this year, ask yourself a few questions. Do you like to use technology for other tasks, like selling possessions on eBay? Are you comfortable relying on tax software to correctly file your taxes? Do you have complicated income sources or deductions that you would enter into tax software?
IRS: What To Do In Case Of An Audit
The U.S. Internal Revenue Service audits taxpayers to see if they've filed their taxes correctly. While the word audit may seem scary, it doesn't have to be if you're prepared for an audit from the IRS. The IRS isn't trying to catch you, just keep track of your receipts, deductions and expenses, and you should be fine. Learn about what you should do to be ready for an audit and what an audit means from CPA Michelle Swenson.
Income Tax Filing Without Stress
Filing your income taxes doesn't have to be a stressful experience. Keep your income tax files organized throughout the year, and dealing with April 15 will be a snap. Make sure your employer has sent you all the forms you need by the end of January, because ultimately, filing your income taxes is your responsibility.
Taxes On Inherited Home Sale
If you inherit a home, you would pay tax on the difference between the value of the home at the time the owner died and the sales price of the home when you sold it. You know the sales price for the home, but you may or may not know the value of the home at the time the owner died. Generally, if the property is sold within a year of the time of death, that sales price is a good indication of the value of the home.
IRS Home Sale Exemption
If you lost a spouse, do you still qualify for the $500,000 home sale exemption when selling your primary residence? A new law permits widowed spouses to take the married exemption if the house is sold within two years. The exemption allows sellers to keep $250,000 in profits tax-free or $500,000 if married.
Income Tax On Inherited Property
Selling inherited property will have its tax implications. To determine what taxes you would pay on selling inherited property, you'll have to get an estimate for the value of the property when it was inherited. You may also own capital gains taxes and state income taxes for the inherited property.
Taxes On Inherited Home
Inheritance tax is usually paid by the estate. If the value of the estate is more than $2 million dollars, the estate will pay inheritance tax on the overage.
Understanding LLCs For Rental Properties
An LLC is a distinct type of entity that is neither a partnership nor a corporation. Instead, and LLC is a company structure that allows owners to have limited liability in case the company has difficulties. Unlike a corporation, an LLC does not have shareholders, but rather it has members.