For decades, the U.S. tax code has contained key provisions to encourage home ownership. One, of course, is the home mortgage interest deduction. Another is the one-time exclusion from income of gain from the sale of a principal residence. The amount of that exclusion can be up to $500,000 for […]
So what are the odds, overall, of the IRS targeting your return for a tax audit? The answer varies, of course, depending on certain factors. It’s important to minimize your risks of an audit by taking common sense steps to protect yourself. As we discussed in our January 29 post, […]
It’s been 20 years now since two successive nominees for the prestigious position of U.S. attorney general had to withdraw due to “nanny tax” problems. Two decades is of course a considerable chunk of time. And yet the complexities of tax law for household employers continue to remain a challenge. […]
The IRS has now begun processing tax returns for early filers. But whether you have filed your taxes or not, it remains important to keep informed about tax issues. This year, one of those issues is the status of professional tax preparers. Another is the possibility that the IRS, along […]
As tax season gets underway, concerns about possible delays in tax refunds remain. One reasons for this is the late date of the fiscal-cliff deal, which caused the IRS to delay until last week the date when it will begin processing tax returns. But the concerns about refund delays go […]
An IRS audit: To taxpayers, the words are usually about as welcome as the words “root canal” are to dental patients. They are not to be sought out, and so serve as a caution against an overly aggressive tax strategy. Keep in mind, however, that failing to take all of […]
It’s been over three weeks now since Congress and President Obama reached a deal to avert the fiscal cliff. Reaching the deal was a relief to many. But the complexity of the various provisions involved could cause considerable confusion as the new tax return season gets underway. The IRS has […]
Many people work out of their homes. Nationally, the number is quite high. The number of taxpayers who took the home-office deduction was over 3 million in 2010, according to the Internal Revenue Service. The IRS is aware, however, that in the past the calculations required to claim the deduction […]
Many people work out of their homes. Nationally, the number is quite high. The number of taxpayers who took the home-office deduction was over 3 million in 2010, according to the Internal Revenue Service. The IRS is aware, however, that in the past the calculations required to claim the deduction […]
The U.S. tax code is filled with detailed provisions whose origins are deep in the past. But the current application of such provisions is often alive and well – and the subject of tax litigation. To take just one example, consider the tax break for asset exchanges. When this provision […]