Deductions For Home Office Expenses
Considering taking a deduction for home office expenses? If so, this article on home office deductions is a must read.
Taxes For Contest Winners
When you win a contest, it's like winning the lottery. You get the goods but you have to pay tax on your winnings as personal income rather than capital gains. The difference can be pretty dramatic in terms of taxes owed. Many people choose to take a cash payment instead of the prize, because they will have the cash to pay any applicable taxes.
Paying Taxes On Inheritance
When it comes to stocks, inheritance and other assets that have appreciated over time, you inherit these assets at the value they had at the time of inheritance or acquisition. Unless one of these accounts was of a type that had designated you as a beneficiary and are taxable to you directly, you should not have to pay any tax on the amounts you received.
Filing Taxes On Your Own
Tax time again! Whether you are using a paid tax preparer or filing solo, you'll need to stay on top of the tax laws. Using software and filing online helps keep track of the myriad of changes to the tax laws each year. If you don't know what deductions you can take, the IRS's website offers hundreds of publications that explain the deductions available for each profession.
Taxes On Sale Of Rental Property and Primary Residence
A couple bought a home on a 2-acre lot. They lived in it while they built a second home, and then moved into the second home after it was completed. They now rent out the original home to another couple. If they sell the property and both homes, how will the transaction be treated at tax time?
Last Minute Tax Tips
Looking for last minute tax tips? For those of you who are still working on filing taxes, here are a few useful tax tips to keep in mind.
Options To Pay Off Back Taxes
If you owe back taxes to the IRS, you may be able to work out a payment plan with the IRS. You may also be able to borrow against any property you own to pay the IRS. However, if you're credit is too low to take out a conventional loan, you could also talk to the better B/C lenders (also known as sub-prime lenders) that specialize in helping people borrow against their home equity even with a poor credit score.
File Income Taxes Free
The state of Illinois has several places for those who qualify to file their taxes for free. If you make $35,000 a year or less, you can file your taxes for free through a variety of programs coordinated by the City of Chicago’s Tax Assistance Center and the Center for Economic Progress. Check out the locations throughout Chicago and the state where you can file your taxes for free.
Taxes On Sale Of Inherited Property
After selling an inherited property, the cash proceeds are divided up between family members. Tax would only be paid on the capital gains after the sale of the property and suggests that a little bit of planning may save everyone a lot of money when tax season comes around. How the taxes are calculated will depend on who owned the property, the value of the property, and how the proceeds were divided.
Back Taxes Owed On Foreclosed Property
After purchasing a property in foreclosure, you could receive a notice for back taxes. Make sure you get the title commitment and owner's title insurance at the time of purchase. Even though it is a foreclosure property, you need to make sure all title problems and tax issues are resolved.