Ordinarily, when you sell something for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Both can affect your taxes. But if you immediately buy a similar property to replac
An IRS tax settlement, called an offer in compromise, allows a taxpayer to pay a reduced amount of tax in either a lump sum (all at once) or short-term installments. To qualify for this agreement, taxpayers must prove to the IRS that they truly cannot afford their originally owed amount ...
Interest:In addition to penalties, interest will also accrue on the unpaid tax debt. The interest rate is determined quarterly and is based on the federal short-term rate plus 3%. The interest compounds daily, which means it continues to accumulate on the initial tax debt amount, as well as...
One of the main purposes of IRS Form 4797 is to report the sale or exchange of property used in a trade or business. This section of the form, Part I, requires taxpayers to provide detailed information about the transaction and accurately calculate the gain or loss associated with it. Here...
Inform the IRS of your late filing, gain an extension, and take care of your taxes by the new due date. The IRS may be strict, but as long as you keep them informed and file the proper forms, they're usually willing to work with you. ...
IMPACT. Listening to critics, the IRS ex- panded the definition of materials and supplies that may be expensed to include property with an acquisition or produc- tion cost of up to $200, increased from an original $100 limit set under the tempo- rary regs. The IRS reasoned that this ...