Archive for April, 2008
Rental Property Tax Issues
Friday, April 25th, 2008When you purchase property and rent it out, you’re essentially running a business. You receive rental income and incur expenses from the property. You hope that, your revenue exceeds your expenses so that your real estate investment produces a profit for all the money and time you’ve invested. You also hope that the market value [...]
Tax Issues For Foreign Students – F Visa & Opt Status
Tuesday, April 15th, 2008Tax issues for foreign students are often very complicate and difficult. What do you do when the first paycheck, scholarship check or loan disbursement check is received and taxes are withheld?
First of all, is the student is a “resident alien” or “non-resident alien” for U.S. tax purposes?
Resident Alien vs. Nonresident Alien
An individual who is not [...]
Tax Tips for Small Businesses
Tuesday, April 8th, 2008Most of unincorporated business are considered “sole proprietors.” A sole proprietor is just another way of saying “self-employed,” “independent contractor,” or “freelancer.” Income and expenses related to your self-employment is reported on your 1040, Schedule C.
Being self-employed is quite possibly one of the best tax strategies available today. You are in full control of [...]
How do you get audited?
Tuesday, April 1st, 2008The IRS uses a system called DIF (Discriminate Income Function) to identity tax returns to examine. The scoring system is set up to identify specific returns that, if audited, will generate additional income tax. Sometimes, the IRS computer selects returns for audit on a random basis. Your income, deductions or where you live could be [...]