Income Taxes and Selling a Home

The IRS posted Tax Tip 2018-83 with the following information about selling a home: Taxpayers who sell a home may qualify to exclude from their income all or part of any gain from the sale. Below are some things taxpayers should keep in mind when selling a home: Ownership and use. To claim the exclusion, the homeowner must meet the ownership and use tests. During a five-year period ending on the date of the sale, the homeowner must have: Owned the home for at least two years. Lived in the home as their main home for at least two years. Gain. Taxpayers
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2018 2nd Quarter Estimated Tax Payments

2018 2nd Quarter Estimated Tax Payments are due on June 15, 2018.  Instructions and a payment voucher can be found here.  Checks should be written to the United States Treasury with Form 1040-ES listed on the memo line along with the taxpayer’s social security numbers.
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BBB in Middle Tennessee

We were honored to host the BBB Middle TN Advisory Board meeting at our office today. Today’s meeting included leaders from BBB Middle TN, Total Trans4mation Heating and Air Conditioning, Redstone Federal Credit Union (South Rutherford), and Beaman Dodge Chrysler Jeep Ram Fiat. If you’re not a BBB member, contact Terrie Page at tpage@gobbb.org to find out what you are missing!
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Non-Profit 990 Due Dates

Form 990 for non-profit organizations with a December 31 year end are due May 15.  An extension can be filed to give the non-profit more time to file.  Generally, Form 990’s are due 5 months and 15 days after a non-profit organization’s year end.  A complete list of non-profit year ends and due dates can be found here.  If you aren’t sure which 990 your organization needs to file, a list and information for all Form 990s can be found here.
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Home Office Deduction

IRS Tax Tip 2018-112 gives advice for claiming the home office deduction: Regular method This method requires computing the business use of the home by dividing the expenses of operating the home between personal and business use. Direct business expenses are fully deductible and the percentage of the home floor space used for business is assignable to indirect total expenses. Simplified method The simplified method has a prescribed rate of $5 a square foot for business use of the home. There is a maximum allowable deduction available based on up to 300 square feet. Choosing this option requires taxpayers to
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Amending a Tax Return

The IRS has published Tax Tip 2018-63 with tips for amending a tax return: Tips for Taxpayers Who Have to Amend a Tax Return Taxpayers who discover they made mistakes or omissions on their tax return can correct them by filing an amended tax return. Those who need to amend should remember these tips: File using paper form. Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct the tax return. Taxpayers can’t file amended returns electronically. They can obtain the form on IRS.gov/forms. Mail the Form 1040X to the address listed in the form’s instructions. Amend to correct errors. File an
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New Rules for Depreciation and Expensing

The Tax Cuts and Jobs Act, signed Dec. 22, 2017, changed some laws regarding depreciation deductions. TCJA increases the maximum deduction for a section 179 property deduction from $500,000 to $1 million. It also increases the phase-out threshold from $2 million to $2.5 million. You can read the IRS Depreciation and Expensing Fact Sheet for more information.
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Estimated Tax Payments

If you are self-employed or have income from sources besides a W2 job, estimated tax payments throughout the year can help you avoid a big tax liability on tax day. The IRS has updated their information for calculating estimated tax payments.  Please click here to access this information.
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Where’s My Refund?

You can check the status of your tax refund here. You will need to enter your social security number, your filing status, and the exact whole dollar amount of your refund. You can check the status of your refund 24 hours after your tax return has been efiled or 4 weeks after your return has been paper filed.  The website is updated every 24 hours.  Most refunds are processed in 21 days.
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