Tax Tips for Selling Your Home

Generally you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale. If you have

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Posted in Capital Gain, Capital Loss, Home Sale, Rental Real Estate, Tax Guidance & Preparation

Claim IRS Tax Credit for Hiring Veterans

The VOW to Hire Heroes Act of 2011, provides an expanded Work Opportunity Tax Credit (WOTC) to businesses that hire eligible unemployed veterans and for the first time also makes the credit available to certain tax-exempt organizations. IRS Notice 2012-13, posted

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Posted in Employment Tax, Tax Credit, Veteran

IRS Form 1040 Schedule C: Profit or Loss from Business

The sole proprietorship or Limited Liability Corporation (LLC) is in my opinion the easiest type of business entity to set up and begin operating from an income tax reporting perspective. It is not separate from its owner with the income and

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Posted in Accounting Method, Business Expense, Business Income, Car expense, Depreciation, Disallowed Expenses, Employee Business Expense, Entity Classification, FICA, Health Insurance, Hobby, Home Office, Husband/Wife, IRS Form 1040 Schedule C, Medicare, Net Operating Loss, NOL, Passive Activity, Self Employ, Small Business, Social Security, Social Security Tax, Sole Proprietor, Start up costs, Sub-chapter S, Tax Guidance & Preparation, Tax Problems & Requests

IRS Failure to File Penalty Abatement for Partnerships

IF your partnership failed to timely file its IRS Form 1065 and you get penalized by the IRS you seek relief from or abatement of this penalty under IRS Revenue Procedure 84-35 if your partnership meets the following criteria 1.

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Posted in IRS Penalties, IRS Penalty and Interest Abatement, Partnership

Lessons From Mitt Romney’s Tax Return

Check out Mitt Romney's 2010 tax return and learn how he does it. The most important lesson I learned in perusing his return (besides the significance of sheltering your $$ outside of the USA) is the immediate impact of targeted charitable contributions.

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Posted in Abusive Tax Shelter, Accounting Method, Alternative Minimum Tax (AMT), Asset Classification, Audit Technique Guide, Basis, Business Expense, Business Income, Charitable Contribution, Cost Basis, Mitt Romney Taxes

Qualified Medical Expense Tax Deductions for Long Term Care Services

Medical expenses include amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease under IRC 213, as well as amounts paid for qualified long-term care services under IRC 7702B. You may deduct certain medical expenses that are paid during the year

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Posted in Health Care Tax Credit, Health Insurance, Medical Expenses

IRS Levy Release Overview

The IRS it seems is issuing liens and levies with substantial gusto lately. I've grown reasonably skilled at getting these burdens timely released and felt compelled this evening to share some of my experiences in this blog post. A levy

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Posted in IRS Levy

Income Tax Based Financial Statements

Enrolled Agents generally tend to avoid preparing financial statements for their business clients due to the regulation of the CPA profession where preparation of these statements has been associated with services enrolled agents were not permitted to perform. However I believe it is not

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Posted in Income

Net Operating Loss Carry Over and Carry Back – IRS Publication 536 – IRC 172 + 6511

Generally speaking a net operating loss (NOL) for any tax year may be carried back two years and forward 20 years under Internal Revenue Code Sec. 172(b)(1)(A). A three-year carry back period applies to NOLs arising from property losses of individuals due to

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Posted in Net Operating Loss, NOL

Cancellation of Debt on Short Sale of Real Estate

When a rental home secured by a recourse loan is sold short you incur a loss on the disposition of the rental properties requiring the report of a sale as well as any income from the cancellation of debt. The cancellation of debt income is excluded from

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Posted in Cancelled Debt, Rental Real Estate
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