Closing costs are unavoidable expenses associated with purchasing a home. While these costs can be substantial, there are limited opportunities to deduct them on your tax return. This guide will provide a detailed overview of which closing costs are tax deductible and how to claim these deductions. Tax Deductible Closing Costs The only closing costs … Read more

Tax evasion is a serious crime that can result in severe penalties, including fines, imprisonment, and asset forfeiture. It is important to be aware of the red flags of tax evasion so that you can report any suspicious activity to the appropriate authorities. What is Tax Evasion? Tax evasion is the illegal act of intentionally … Read more

Underpayment penalties can be a frustrating and unexpected surprise during tax season. Even if you ultimately receive a refund, the IRS may still assess penalties if you failed to withhold or pay enough taxes throughout the year. This guide will delve into the causes of underpayment penalties, provide step-by-step instructions on how to address them … Read more

Understanding IRS Seizure Powers The Internal Revenue Service (IRS) possesses the authority to seize and sell property to satisfy unpaid tax debts. This power extends to jointly owned property, even if only one owner is responsible for the tax liability. IRS Seizure of Jointly Owned Property When the IRS seizes jointly owned property, the non-debtor … Read more

Purchasing a vehicle for business purposes can be a significant investment. Fortunately, the Internal Revenue Service (IRS) offers tax deductions and write-offs to help businesses offset the cost of vehicle ownership and operation. This article will provide a comprehensive guide to writing off a vehicle purchase for your business, covering both the standard mileage rate … Read more

The Internal Revenue Service (IRS) has several ways to track gifts you make to your grandchildren or other family members: 1. Filing Form 709: The primary method the IRS uses to discover gifts is through Form 709. This form is required for gifts exceeding $15,000. 2. Audits: During an audit, the IRS may uncover gifts … Read more

Understanding the IRS Audit Process for Child-Related Tax Credits The Internal Revenue Service (IRS) conducts audits to ensure that taxpayers are accurately reporting their income and deductions. This includes verifying the eligibility of claimed dependents, such as children, for tax credits like the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Reasons for … Read more

Navigating the complexities of the Canadian tax system can be a daunting task, especially when trying to estimate the amount of tax you owe. This guide will provide a detailed analysis of the taxes applicable to an individual earning $95,000 annually in Canada, empowering you with the knowledge to accurately calculate your tax liability. Tax … Read more

Gifting money to loved ones is a common practice, but it’s crucial to be aware of the tax implications to avoid any legal complications. The Internal Revenue Service (IRS) imposes a gift tax on individuals who exceed a certain amount of gifts given in a single year. Understanding the annual gift tax exclusion is essential … Read more

Navigating the complexities of the tax code can be a daunting task, but understanding the strategies available to reduce your tax liability can save you a significant amount of money. This guide will provide you with a comprehensive overview of the most effective methods for minimizing your tax burden, empowering you to make informed decisions … Read more