Protect Your Business with Section 530
It can cost you a bundle if you misclassify a worker as an independent contractor instead of an employee for federal employment tax purposes. Read further about that in our article about Worker Classifications & Why It Matters. The IRS can make you pay back payroll taxes plus penalties. In some cases, these can equal […]
Tax-Free Home Sale: Home Sale Exclusion, When and Why to Report it to the IRS
You’re probably aware that when you sell your home, you may exclude up to $250,000 of your gain from tax if you’re unmarried (or married, filing separately) and $500,000 if you are married and file jointly. To claim the whole exclusion, you must have owned and lived in your home as your principal residence for an […]
Real Estate Professional Status & Passive Losses
Deducting your rental property tax losses against your other income is tricky, as you likely know. You have to get the tax law to treat you—say, a computer engineer—as a tax-code–defined real estate professional (IRS publication 925 discusses passive activity and At-Risk Rules and page 8 further explains Real Estate Professional Status). Let’s say you […]
IRS Penalties & Strategies for Relief
If you’ve recently been billed by the IRS with the claim that you owe a penalty for late filing, late payment, or missed employment tax deposits, we urge you to pause before making any payment. You may not have to pay that penalty at all. The IRS often imposes steep penalties for filing tax returns […]