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.
Can you avoid capital gains tax by gifting? A reader wants to know if they can reduce a potential capital gains tax bill by gifting a portion of the home to his daughter. Q: My daughter, my wife and I are co-owners of the home. Our daughter lived with us until 2021. We bought the [...]
Tax return 2020: how to spend your refund. This is how you should spend your income tax refund to prepare for a recession. The IRS officially opened the 2020 income tax season last Monday, January 27th, when it began accepting individual tax returns. The majority of Americans are expecting an income tax refund, but just [...]
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.
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.
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?
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.
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.
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.
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.
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.