Those who rent and use vacation property likely purchased the real estate with tax savings in mind. Although these tax savings may still be available, the passage of the Tax Cuts and Jobs Act (TCJA) has changed how taxes are applied to second properties.
The Internal Revenue Service (IRS) may not take your claim of a charitable donation at your word. In some cases, the agency may require additional information to substantiate the claim. Just how the agency goes about substantiating the claim can vary, but three specific things the IRS tends to expect in these situations include:
President Donald Trump and his administration have made many promises in light of recent tax reform. In addition to reducing most taxpayer's overall tax obligations, the administration also promised to unveil a "postcard-sized income tax return" to simply tax filings for the 2018 tax year.
Think the IRS is about to conduct an audit of your tax returns? The following basic questions and answers can help you get through the process with minimal stress.
The Internal Revenue Service (IRS) audited approximately 934,000 tax returns in 2017. The IRS conducted 70.8 percent of these audits via a mailed correspondence and 29.2 through a full field investigation.
The Internal Revenue Service (IRS) recently published clarification on how the new tax law impacts deductions for interest paid on home equity loans. The agency notes that there are restrictions, but many homeowners can still qualify for these deductions.
The Internal Revenue Service (IRS) is keeping a close eye on what is referred to as the “gig” economy. This term refers to a new job market that involves the shift from typical nine to five jobs to short-term, flexible positions. These positions are often self-managed, allowing a great deal of autonomy for those who pursue this type of work.
Even if you do everything right, there's no guarantee your tax return won't be audited. After all, the IRS does choose some returns at random for auditing.
Some people enjoy the flexibility of freelance work. Others take it on because well-paying traditional jobs can be hard to find.
A tax audit is hardly a deal breaker for moving forward with life. After all, an audit doesn't necessarily mean you owe more tax or did anything wrong.