IRS Gives Relief for Late Elections to Combine Real Estate Activities.
The Internal Revenue Service recently announced that it will adjust its use of tax liens to collect back taxes. A federal tax lien gives the IRS a claim on a delinquent taxpayer’s property for unpaid taxes. This change means the IRS won’t use a tax lien unless at least $10,000 in back taxes is owed; […]
Tax Freedom Day fell on April 12 this year, three days later than in 2010. According to the Tax Foundation, all the money earned by taxpayers in the first 102 days of 2011 will go to pay their federal, state, and local taxes. Another “fun fact” from the Tax Foundation: If the government were to […]
Planning to rent out your vacation getaway? When it comes to taking advantage of the tax benefits, timing is an important factor. Here are two points to remember: 1. The 14-day-or-10-percent test. The IRS applies this test to determine if you use your vacation home as a personal residence. If you stay in the home […]
Suppose you’re selling your business, and it’s worth $400,000. You’re offered $210,000 down and lump sums of $100,000 at the end of year 1 and year 2. Should you take the offer? Most people know that $1,000 now is worth more than $1,000 a year from now. Here’s why: 1. Inflation: In a year, a […]
On April 14, 2011, President Obama signed legislation (Comprehensive 1099 Taxpayer Protection and Replacement of Exchange Subsidy Overpayments Act of 2011) repealing the previously expanded reporting rules for businesses and landlords that had been created by laws passed in 2010. Business reporting. The Form 1099 reporting rules were changed by the 2010 health care legislation. […]
Monday, April 18, is a red letter day in the world of taxes. It is the deadline for filing certain returns and taking certain tax-related actions. Here are the major deadlines. Filing 2010 income tax returns for individuals. If you cannot file your return by this deadline, be sure to file an extension request by […]
A relationship with an accountant is important for every stage of your life, most especially if you are in business for yourself. Entrepreneurs face some of the same financial challenges as larger companies. Taxes, for one. Payroll and income tax too. Large companies have accountants on staff working for them, but smaller companies may not […]