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.
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.
When you're an employer you're supposed to pay an unemployment tax for your employees to the state where you live. The state of Illinois changed the unemployment tax rate and some employers had not kept current with their taxes. Those employers now owe back taxes for unemployment taxes.
When you use your car for work you may be able to deduct your automobile expenses on your taxes. Eligible automobile expenses for a tax deduction include mileage and depreciation. But if you don't itemize your deductions on your taxes you cannot claim your automobile expenses as one of these deductions. Contact a tax preparer for more information.
Most lenders will run a lien check from the IRS. Lenders require the lien to be paid off prior to lending you any money. The IRS has first dibs, even before a mortgage lender, to any proceeds available when you sell your home.
When you own two homes, and one is a renovation that you planned to flip, where should you live? It depends in part on the tax consequences of selling the homes. It may make sense to move from your current home into the renovated home so you will pay lower capital gains taxes on the home sale. You can live in the renovated home for a few years and then sell it as well for more profit and a better capital gains tax amount.
Anyone who can't file their return by midnight on April 15 can get an automatic four month extension. That gives you time to complete your return, but you still have to pay any taxes that would be due today or owe interest and penalties on top of the tax owed.
The latest trend in identity theft is to steal social security numbers and file a false tax return. Avoid identity theft and tax fraud by protecting your social security number and personal information.
Two weeks to go until your federal and state income taxes are due. Although tax brackets went down this year, many Chicagoans still feel their taxes are too high. If you haven't filed, there are some ways you might be able to lower your tax bill.
Get organized for tax time. For the basic stuff you need to create an easy filing system for your house files, check out office supply stores or warehouse stores like Sam's and Costco. To help make sense of your tax return, try online programs like Turbotax, and use programs like It's Deductible to determine the true value of your donations
