Exclusion of gain on your home

If only you could sell, you would be able to exclude from your income up to $250,000 if you are single or $500,000 if you are married of the capital gains on the sale of your home. You must use the home as your principal residence for at least 2 of the 5 years before…

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Phase out of itemized deductions + personal exemptions

If you bump up against certain income thresholds, your itemized deductions and personal exemptions start disappearing. The reduction does not apply to deductions for medical expenses, investment interest, nonbusiness casualty and theft losses, and gambling losses. Luckily, these thresholds are increased each year for inflation. For 2009, the applicable amount is $166,800 for married couples.…

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Mortgage forgiveness not taxable

Congress has extended the tax exclusion for forgiven mortgage debt through 2012. There is a $2 million limit ($1 million for married individuals filing separately) on this tax exclusion, and the loan must have been used to buy or improve your principal residence. Under previous law, forgiven debt would be considered taxable income by the…

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Undocumented Aliens must obtain a Tax Payer Identification # and pay taxes

IF you are an undocumented alien in the United States and you have not registered with the IRS for a tax payer identification number and filed personal income taxes you are in violation of the law and risk deportation. You need to know that the IRS can not share your personal information with the the…

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Unlawful internet gambling enforcement act – final rule

The Act prohibits any person engaged in the business of betting or wagering (as defined in the Act) from knowingly accepting payments in connection with the participation of another person in unlawful Internet gambling. Such transactions are termed “restricted transactions.” The Act generally defines “unlawful Internet gambling” as placing, receiving, or otherwise knowingly transmitting a bet or…

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Are you a first time home buyer … or not

A first-time homebuyer is an individual who has not had an ownership interest in a principal residence for three years prior to the purchase of the principal residence to which the $7,500.00 2008 tax credit would apply. Should first time home buyers be married and filing a joint return – if one spouse had an…

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The Amero

The Amero is not (as of yet anyhow) a valid currency to pay your US tax obligations with. IT is at this point a “currency” that is believed by many to one day replace the greenback – US Dollar – when the value of the US Dollar declines to insignificance. It is not (again as…

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Disregarded Entities Required to Pay Own Employment Taxes

Beginning with wages paid in 2009, final regulations require “disregarded entities” to pay their own employment taxes and file their own tax reports. A new employer identification number (EIN) will be needed if the disregarded entity does not have one. Under the disregarded entity rules, certain single-owner eligible entities and QSubs are disregarded as entities…

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IRS Conducts Backgroud checks when POA filed

IRS to Begin Background Checks When POA is FiledThe Office of Professional Responsibility (OPR) has announced that tax practitioners who file Form 2848, Power of Attorney, will automatically undergo a background check. The background check is to ensure that they have timely filed and paid their own personal taxes. This type of background check has…

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Identity Theft – impact on personal taxes

The IRS has created a special unit if you or your clients believe you are the victim of identity theft. The hotline provides assistance for individuals who believe they may be a victim of identity theft with no known tax administration impact and those who have a current identity theft related tax issue which has…

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