Are property taxes deductible?
By cpa | January 16, 2008
Property taxes on all real estate, including those levied by state and local governments and school districts, are fully deductible against current income taxes.
Topics: Property Taxes | No Comments »
How do property taxes work?
By cpa | January 16, 2008
Property taxes are what most homeowners in the United States pay for the privilege of owning a piece of real estate, on average 1.5 percent of the property’s current market value. These annual local assessments by county or local authorities help pay for public services and are calculated using a variety of formulas.
Topics: Property Taxes | No Comments »
What is the difference between market value and appraised value?
By cpa | January 16, 2008
The appraised value of a house is a certified appraiser’s opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 to $300.Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker. Either an appraisal or a comparative market analysis is the most accurate way to determine what your home is worth.
Topics: Investing in Real Estate | No Comments »
What is the best time to sell your house?
By cpa | January 16, 2008
There is no “best” time to sell per se. Selling a house depends on supply, demand and other economic factors. But the time of year in which you choose to sell can make a difference both in the amount of time it takes to sell your home and in the ultimate selling price.Weather conditions are less of a consideration in more temperate climates, but most of the time, the real estate market picks up as early as February, with the strongest selling season usually lasting through May and June.
With the onset of summer, the market slows. July is often the slowest month for real estate sales due to a strong spring market putting possible upward pressure on interest rates. Also, many prospective home buyers and their agents take vacations during mid-summer.
Following the summer slowdown, real estate sales activity tends to pick up for a second, although less vigorous, fall market, which usually lasts into November when the market slows again as buyers and sellers turn their attention to the holidays.
If this makes you wonder if you should take your home off the market for the holidays, consider the advice of veteran agents: You are always more likely to sell your house if it is available to show to prospective buyers continuously.
Topics: Selling Your Home | No Comments »
Why Pay Taxes? — The Truth about Frivolous Tax Arguments
By cpa | January 14, 2008
The Truth About Frivolous Tax Arguments (PDF 405K) addresses some of the more common false “legal” arguments made by individuals and groups who oppose compliance with the federal tax laws. These arguments are grouped under six general categories, with variations within each category. Each contention is briefly explained, followed by a discussion of the legal authority that rejects the contention. The second section deals with frivolous arguments encountered in collection due process cases. The final section illustrates penalties imposed on those pursuing frivolous cases.
Topics: TAX | 2 Comments »
Self-Employed
By cpa | January 14, 2008
If you are in business for yourself, or carry on a trade or business as a sole proprietor or an independent contractor, you generally would consider yourself a self-employed individual. You are an independent contractor if the person for whom you perform services has only the right to control or direct the result of your work, not what will be done or how it will be done.
You are self-employed if any of the following apply to you:
- You carry on a trade or business as a sole proprietor;
- You are a member of a partnership or limited liability company that files a Form 1065, U.S. Return of Partnership, that carries on a trade or business; or
- You are otherwise in business for yourself.
You are also self-employed if you have a part-time business, in addition to your regular job.
Topics: Individuals | 1 Comment »
Industry Issue Focus
By cpa | January 14, 2008
The Large and Mid-Size Business Division (LMSB) of the IRS is implementing an Industry Issue Focus (IIF) approach to compliance as part of its overall issue management strategy. The goals of this approach are:
- Consistency in resolution across industry lines
- Improved currency
- Increased coverage of non-compliant taxpayers by maximizing limited resources
- Greater oversight on and accountability for important issues
Under this approach, compliance issues are identified by the field through examinations, Schedule M-3 reviews, and other sources. These issues are prioritized or tiered based on how prevalent they are across industry lines and the level of compliance risk they present.
Topics: Businesses | No Comments »
Alternative Minimum Tax
By cpa | January 14, 2008
The upcoming tax season is expected to start on time for everyone except for certain taxpayers potentially affected by late enactment of the Alternative Minimum Tax “patch.” Following extensive work in recent weeks, the IRS expects to be able to begin processing returns for the vast majority of taxpayers in mid-January. However, as many as 13.5 million taxpayers using five forms related to the Alternative Minimum Tax (AMT) legislation will have to wait to file tax returns until the IRS completes the reprogramming of its systems for the new law.
IRS has targeted Feb. 11, as the potential starting date for taxpayers to begin submitting the five-related returns affected by the legislation. The February date allows the IRS enough time to update and test its systems to accommodate the changes without major disruptions to other operations related to the tax season.
Topics: Individuals | No Comments »
What is the AMT?
By cpa | January 14, 2008
The AMT came into being with the Tax Reform Act of 1969. Its purpose was to target a small number of high-income taxpayers who could claim so many deductions they owed little or no income tax. A growing number of middle-income taxpayers are discovering they are subject to the AMT.
Topics: Individuals | No Comments »
Do I have to consider contingencies?
By cpa | January 14, 2008
If you are a seller in a seller’s market, in which there is more demand than supply, you probably won’t have to entertain too many contingencies. But if you are selling in a buyer’s market, when buyers are few, prepare to be very flexible. Granting contingencies also depends upon what kind of price you want to get and on the condition of your property, most experts agree. Remember, contingencies are written into the contract and are negotiable during the negotiation phase only.
Topics: Negotiating | No Comments »
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