Selling property in 2025 can trigger several different federal tax issues depending on what kind of property you sell, how you used it, how long you held it, whether depreciation was claimed, and whether any exclusion or deferral rule applies. The tax treatment is very different for a principal residence, rental property, farmland, business...
If you have high income, large deductions, incentive stock option income, or other tax preference items, the AMT may still affect your 2025 return. The AMT is designed to limit the benefit of certain exclusions, deductions, and timing advantages by recalculating taxable income on a broader base. What the AMT is Under IRC, AMT is...
Parents often help children financially by paying tuition, covering medical bills, making cash gifts, or transferring property. For federal gift tax purposes, many of these transfers are either excluded or sheltered, but the rules depend on how the transfer is structured. In 2025, the annual gift tax exclusion is $19,000 per recipient, and special rules...
IRS penalties in 2025 are not one-size-fits-all. Different penalties apply to different failures, the dollar amounts vary by return type and timing, and relief often depends on whether the taxpayer can show reasonable cause or qualifies for administrative waiver. For 2025 returns filed in 2026, the core late-filing and late-payment rules remain grounded in...
For many taxpayers, retirement accounts are supposed to be long-term savings for basic living expenses later in life. But under federal tax collection law, retirement accounts are not automatically protected from IRS levy. The IRS’s levy power under Internal Revenue Code is broad and generally reaches all property and rights to property unless a specific...
Tax credits are often more valuable than deductions because a credit reduces tax dollar for dollar, while a deduction only reduces taxable income. IRS guidance explains this distinction directly and notes that some credits can even increase a refund if they are refundable. For 2025 returns filed in 2026, several credits are especially easy...
If you filed your individual return and later realized something was wrong, the IRS’s standard fix is Form 1040-X, Amended U.S. Individual Income Tax Return. For 2025 and into 2026, there are several important updates to the amended return process, including expanded electronic filing, new attachment rules for paper filings, and special timing rules...
Getting an IRS audit notice can feel intimidating, but an audit is not the same thing as an accusation of wrongdoing. The IRS states that selection for audit does not necessarily mean there is a problem with the return. Returns may be selected through statistical screening, related examinations, or mismatches with third-party information returns....
For closely held business owners, one of the more useful planning rules is the so-called “Augusta Rule.” In general terms, it allows a homeowner to rent out a residence for a short period during the year without including the rental income in gross income. When structured properly, that can let a business deduct the...
Being self-employed offers flexibility, but it also brings added tax scrutiny. The IRS expects sole proprietors and independent contractors to report all business income, claim only allowable deductions, and properly calculate self-employment tax. Many audit issues arise not from fraud, but from misunderstanding the rules. Under, gross income includes all income from whatever source...
Copyright by Accu-Tax, Inc. All Rights Reserved.
Copyright by Accu-Tax, Inc. All Rights Reserved.
