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Thinking of Selling Your Home?

Thinking of Selling Your Home? Understanding the Home Gain Exclusion. Often a tax surprise occurs when selling your home. The possibility of capital gains tax should be understood before selling your residence. Here is a summary of the rules. One of the largest tax breaks available to most individuals is the ability to exclude up to $250,000 ($500,000 married) in capital gains on the sale of your personal residence. Making the assumption that this gain

Section 529 College Savings Plan

Is a Section 529 plan the right college savings plan for you? 529 college plans. There are many ways to save for college, but one thing is certain: it is never too early to start. One way to save for college is with a “Section 529” plan. These plans offer a way to pay for college expenses with some nice tax advantages. What are they? Section 529 plans allow you to set up a tax-advantaged

Check your credit report – it’s free

Check your credit report – it’s free You can check your credit rating from all three of the major credit reporting agencies for free. To insure the accuracy of your report simply click here. Alternatively, you can receive your free report if you call 1-877-322-8228. You are able to receive one free report from each agency annually. Why bother to get a credit report? Identity theft is a multi-billion dollar industry. Checking your credit rating

IRS mails out 1 million pieces of mail

  Did you know the IRS mails out 1 million pieces of mail per week? During the shut down due to COVID-19, this trickeld down to no automaic notices for the last two months or so. According to the National Taxpayer Advocate, the IRS never stopped PRINTING, but they stopped MAILING. The Internal Revenue Service is about to begin mailing TWENTY MILLION back notices. Many of the notices will have expired – for exmaple ‘we

If you have a household employee

The Household Employee Problem. Nanny Tax. This often overlooked bookkeeping and payroll tax requirement can cause a tangle of tax problems if not handled correctly. It ended a run for Congress by Caroline Kennedy (JFK’s daughter) and killed a U.S. Attorney General nominee’s chances for appointment. Could you be impacted? This is what you need to know. Nanny Tax Explained In an effort to capture income from household employees, the tax code requires you to

Adjusted Gross Income and Gross Income

Question: How does “adjusted gross income” differ from “gross income”? Answer: For income tax purposes, there are three levels of income: gross income, adjusted gross income, and taxable income. Adjusted Gross Income.  Firstly, to arrive at adjusted gross income (AGI), you are allowed a long list of deductions from gross income. For example, business expenses, certain losses, and retirement account contributions. These deductions, also called above-the-line deductions, are allowed even if you don’t itemize your personal deductions

Estate Tax: What EVERYONE Should Know

Estate Tax. What EVERYONE Should Know. Most taxpayers ignore the federal estate tax, thinking they will never be touched by it. Unfortunately, you do this at your own peril. Why? Because states often have this tax AND politicians have a habit of frequently changing the rules. The best approach for all taxpayers is to understand the basics of the estate tax. Here is a quick summary of common questions you should be able to answer.

There’s still time to apply for the PPP loan

There’s still time to apply for the PPP loan. Responding to the needs of small businesses, the president signed legislation titled The Paycheck Protection Program Flexibility Act (PPPFA), also known as H.R.7010, on June 5, 2020.  The Paycheck Protection Program Flexibility Act revises the Paycheck Protection Program (PPP) in response to critiques, making it more flexible and offering small business owners increased access to loans. Since the PPP launched on April 3, over 4.4 million loans have

Keep track of business vehicle expenses

Are you asking yourself, How do I keep track of business vehicle expenses?  Well you are in luck! We have listed 2 methods. You can use either of two methods to account for your deductible business use of a vehicle.  1. Actual expenses. The first and most cumbersome is to keep track of all your expenses, such as gas and oil, license, insurance, and repair bills. You total all your expenses and take a percentage of

From small tasks to major projects in 2020

From small tasks to major projects, Evernote is where you’ll achieve your best work, day in and day out for all your small tasks and major projects. As one workspace that lives across your phone, tablet, and computer, Evernote is the most productive office for modern teams. Write free from distraction, collect information, find what you need, and present your ideas to the world—all more efficiently than you ever imagined, giving you more time to