Are you familiar with how the IRS treats the income and expenses for when you rent rooms in your home? Due to the shortage of affordable housing these days, many homeowners are renting out rooms in their homes, providing themselves with some additional cash. Some questions that often come up in regard to room rentals include: Is the income taxable? If so, how do I report the income from a room rental? What deductions can I take on my tax form? Can I claim a loss on rent? Answers to these questions are as follows: Continue reading →
Yes, tax reform is confusing. In part 2 we hope to shed light on other areas of tax reform changes. As mentioned last week, we decided to put together a side-by side comparison of the old and new law. At the end of Part 1’s blog post, is an infographic to help you maneuver all the details behind Tax Reform. Below we will break down Part 2 of this very long infographic for an easier understanding. Let’s go! Continue reading →
Well, the Tax Cuts and Jobs Act (H.R. 1) has passed, mainly starting in 2018. Are you confused by tax reform and your taxes, and how this new law will impact you? You’re not alone. As has become the norm for Congress, it played brinksmanship and waited to almost the end of the year, in the midst of the holidays, to pass this very extensive tax bill, providing little time for anyone to plan for 2018.
So that you have an idea about how these changes might affect individual taxpayers like yourself, we have put together some of the key points of the new law. As a suggestion, pull out your 2016 federal return and follow along to get a better understanding of these changes. Continue reading →
Wouldn’t you like to know about early year-end tax planning to take advantage of possible tax reform?
So, why do we think early tax planning is appropriate this year? Actually, with the prospect of major tax reform on the horizon, some strategies can be put into place before the end of the year that can substantially reduce your 2017 tax bill. That would be nice.
Are you are up against the April 18, 2017 deadline and still need some information to complete your tax return, here are some last minute tax tips. Keep in mind these tips will help you also address last minute tax payments. Continue reading →
As an Uber or Lyft driver, you are an independent contractor and treated differently under the IRS code. With this comes new rules when it comes to your taxes. Understanding the tax code can help you minimize your tax liability. Watch the video below for more details or call our office for help. Continue reading →
Are you thinking about selling real estate property? Are you liberal minded about selling your real-estate or more conservative? There are a number of issues that could impact the taxes that you might owe. Here are steps you can take to minimize the gain, defer the gain, or spread the gain over a number of years. Whichever you chose, you can win from the sale of your real estate, IF you handle it correctly. Continue reading →
When looking over your tax return, do you notice an amount on line 45? That amount is because you are subject to the alternative minimum tax. The Alternative Minimum Tax or AMT is an income tax that does not allow some of the tax preferences and deductions that regular tax computation allows. Basically, a punitive tax. When an AMT computation results in a higher tax, the higher tax applies. The additional tax from the Alternative Minimum Tax is added on line 45 of your return. Continue reading →
Have you been following the Olympic Games? It is amazing the skill these athletes have. And, kudos to Michael Phelps for breaking a 2000 year old plus record! If you haven’t heard, the record that Michael Phelps broke is 2,168 years old to be exact. Think of him as breaking records from all the way back to 152BC. Continue reading →
So you won an employment lawsuit. What does that mean for your tax return come April? How do the tax laws relate to the tax on money settlements and damage awards? Employment legal actions are complex and can sometimes seem unfair. The following factors help to determine the actual taxation of the award: Continue reading →
Disclaimer: This publication/blog, which may be considered advertising under the ethical rules of certain jurisdictions, is provided with the understanding that it does not constitute the rendering of legal advice or other professional advice by Joseph J. Cahill / Worthtax or any of its subsidiaries or its attorneys, employees or associates representing Joseph J. Cahill / Worthtax. Additionally, the foregoing discussion does not constitute tax advice. Any discussion of tax matters contained in this publication/blog is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing or recommending to another party any transaction or matter.
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