Coverdell Education Savings Accounts

A Coverdell Education Savings Account (ESA) is an account created as an incentive to help parents and students save for education expenses. The total contributions for the beneficiary of this account cannot be more than $2,000 in any year, no

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Posted in Children, Education Expense

Deducting Vehicle Donations

If you donated a car or other vehicle to a qualified charitable organization and intend to claim a deduction you should review the special rules that apply to vehicle donations. You can deduct contributions to a charity only if you

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Posted in Charitable Contribution

Deducting Costs of Refinancing Your Home

If you refinanced your home mortgage you may be eligible to deduct some costs associated with getting the new loan. The term "points" is used to describe certain charges paid to obtain a home mortgage. Here are some things to remember when

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Posted in Mortgage

Sale of Your Home

If you have a gain from the sale or exchange of your main home, you may be able to exclude all or part of the gain from your income. Individuals may be able to exclude up to $250,000 of capital

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Posted in Passive Activity, Tax Guidance & Preparation

Home Office Deduction IRS Publication 587

If you use a portion of your home for business purposes, you may be able to take a home office deduction whether you are self-employed or an employee. Expenses that you may be able to deduct for business use of

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Posted in Employee Business Expense, Home Office

New Form for Employees Misclassified as Independent Contracts

IRS Form 8919, Uncollected Social Security and Medicare Tax on Wages, may be used if you were an employee and your employer did not withhold your share these taxes and you meet certain criteria. These taxes will then be credited to

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Posted in Back Taxes Owed, Employee Business Expense, Employment Tax, Estimated Taxes, FICA, Social Security, Social Security Tax, Tax Filing Status, Tax Guidance & Preparation

Child and Dependent Care: IRS Publication 503

If you paid someone to care for a child under age 13 or a qualifying spouse or dependent so you could work or look for work, you may be able to reduce your tax by claiming the Child and Dependent

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Posted in Adoption, Child Tax, Children, Dependent

Are you eligible for tax credits?

A tax credit is a dollar-for-dollar reduction of taxes owed. Some credits are refundable – taxes could be reduced to the point that a taxpayer would receive a refund rather than owing any taxes. Taxpayers should consider their eligibility for the

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Posted in Tax Credit

Flipping Houses – reporting requirements

If you actively in an ongoing capacity buy property to fix up and resell even if you are doing it aside from your regular voacation you are"flipping" real estate and as such not eligible to treat those properties as capital

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Posted in Rental Real Estate

The easist way for investment ‘traders’ to report transaction gains and losses to the IRS

According to the instructions for Schedule D (page 6), instead of entering the details of each transaction separately on Schedule D or D-1, you can attach a statement containing all of the same information as Schedules D and D-1 as

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Posted in Capital Gain, Capital Loss, Cash Transaction, IRS Examination, Stock Options, Tax Guidance & Preparation
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