What do I do if I receive a notice
from the IRS about my taxes?
Don’t panic! the first thing to do is carefully read the notice—to determine why it was sent, what the IRS is requesting, and what they want you to do. It may be nothing of importance; it may even be a notice in your favor. After reading it you should bring it to our attention.
What is the difference between a C and an S corporation?
A C Corporation and an S Corporation are exactly the same in respect to liability protection. The difference is in how you are taxed. A C Corporation has what is referred to as a double taxation. First the corporation is taxed, and secondly the dividends are taxed on the shareholders’ tax returns. An S Corporation is not taxed at the corporate level, only at the shareholder level. Most small businesses are eligible to file as S corporations. But the appropriate election must be made.
How do I find out about my refund?
The best way is to use the Check Your Refund link from the
Resources pages of our website! To look up the status of your
federal or state refund, you will need your social security
number, filing status, and exact amount you’re
How long do I keep my records and tax
You should keep your records and tax returns for at least 3 years from the date the return was filed or the date the return was required to be filed, whichever is later. It is recommended that you keep these records longer if possible.
If I donate my vehicle to charity, how much can I deduct on my tax return?
In the past there were a lot of charities asking you to donate your car, and there were a lot overinflated appraisals of the fair market value for these vehicles. But recently the IRS has gotten stricter on the way you determine the value of your car. Now you must claim the actual amount the charity received at an auction to sell the car, and the charity should give you timely acknowledgment to claim the deduction. If the vehicle is actually used by the charity instead of sold at auction, then you may claim the vehicle's fair market value.
What are the tax consequences of selling a home?
If you sell your personal residence you can totally exclude from income up to $250,000 of gain if you are single, or $500,000 if married, regardless of your age at the time of the sale—if during the 5 years before the sale you owned the home and lived in it for a total of any 24 months. The exclusion is not a one-time election; instead it is available once every 2 years. Recent tax law has adversely changed the handling of gains on the sale of a home if you rented the property before you made it your personal residence. Please contact our office if you believe this situation will affect you.
If I buy a new home, can I deduct my moving expenses?
If you move to a new home because of a new principal workplace, you may be able to deduct your moving expenses. To do so, you must meet the conditions for both the distance and the time tests.
The time test states that you must work full-time in
the general area of your new workplace for at least 39
weeks during the 12 months right after you
The time test states that you must work full-time in the general area of your new workplace for at least 39 weeks during the 12 months right after you move.
You can claim this deduction even if you expect to work but haven’t started working at the time you file your return.
Expenses you can deduct are transportation and storage of household goods and personal items and travel including lodging from your old home to your new home. Expenses of trips for house hunting are not deductible.
If your employer reimburses you for these expenses, your deduction may be limited. If you spent less than the reimbursement you will have to report a portion for income. Please do not hesitate to call us if you have any questions about these rules.