Second Homes - Tax Benefits and Potential Tax Pitfalls

Many people are buying a second home to use for vacations or to acquire a home to be used in retirement. Some provisions of the tax law treat a second home the same way as a primary home. However, other tax provisions applicable to a second home differ from the tax rules that apply to a principal residence. This article explains the tax benefits and potential tax pitfalls in owning a second home.

Common Tax Mistakes

People make a lot of mistakes when it comes to their taxes... here's a few of them.

Taxation of the Sale of Your Home

Most home sellers are very excited on closing day. They anticipate seeing a very large check, usually the largest check they will see for any type of possession or investment they have sold. But, come the following April 15th, they should be asking their accountant whether there are any taxes that must be paid on the profit.

Top Tips For Saving Money On Your Tax Bill

Getting Ready To Submit Your Tax Return? Read these tips to save money before the tax year ends.

How To Choose A Good Tax Advisor

There is a major difference between a tax preparer and a tax advisor. Tax preparers, although many may advertise that they can save you money with your taxes or get you a better return, their actual job is really focused on the actual paperwork of filing out your taxes. A tax advisor is actually what you should look for if you are hoping to save money on your income tax.

Save Taxes Using the Section 179 Deduction

The Section 179 deduction is one of the best deductions in all of the Internal Revenue Code. A business may deduct up to $108,000 of business equipment, furniture, machinery, and off-the-shelf computer software that the business purchases and places in service in 2006. Some limitations and special rules apply. The Section 179 deduction also saves self-employment tax for self-employed individuals.

Royalty Tax Payments in Franchising Agreements

As many government agencies attempt to collect more tax revenue some have decided to tax royalty payments of franchisors who have franchise outlets within their jurisdictions.

Tax Season – Time for Scams

As tax season draws irresistibly closer, the scam artists are polishing their latest techniques. This article should help you keep an eye out for these nasty individuals.

Hybrid Rebate for 2006 Tax Credit for Hybrid Cars

New tax credit that replaces the 2005 tax deduction for Hybrid Motor Vehicles is potentially much more valuable. So if you waited to buy one of those environmentally friendly cars your procrastination has paid off.

What Happens If You Give More Than $12,000 To Someone in 2006?

In an earlier article, we discussed the annual gift tax exclusion and how it works. In summary, we said that you could give up to $12,000 in cash or property to any one person during 2006 and not have to pay a federal gift tax. In fact, you don't even have to file a gift tax return. This is not the result of a kind and benevolent federal government at work. Rather, it is simply an effort to avoid an administrative nightmare keeping track of everyone's nominal gifts for weddings, birthdays, holidays, etc. Can you image having to file a gift tax return every time you took a bottle of wine over to your neighbors' for dinner?

Get a Jump Start on Your Taxes

Preparing and filing your taxes is a less than exciting task. Much like visiting the dentist it something that must simply be done. There are ways to make it a little less painful.

Where to Deduct Tax Preparation Fees

Are tax preparation fees deductible only as a miscellaneous itemized deduction for all taxpayers? Has the IRS issued a ruling that shows where taxpayers may deduct tax preparation fees to save the most in taxes? If you own rental real estate or you are self-employed, you need to read this article.

Prepaid Tuition Costs Can Save Thousands of Dollars in Gift and Estate Taxes

With education costs soaring to all time highs, making tuition payments for grandchildren and others can save lots of money in gift and estate taxes down the road - even if the donor is not alive when the tuition money is actually used.

Capital Assets – Gains and Losses for Taxes

Capital is a unique term when it comes to taxes. If it gains value, you pay a tax. If it loses it, you can write at least some of the loss off.

Taxpayer Advocate – Customer Service at the IRS

Every business has a department that deals with complaints from customers. At the IRS, this department is known as the taxpayer advocate office.