by Leif Jensen | Aug 17, 2021 | Taxes |
With a red hot housing market in 2021, tons of people have been selling their homes. A reminder on calculating gain or loss from the sale of your primary home. You start with the amount of gross proceeds reported in box 2 of Form 1099-Sand subtract selling expenses...
by Leif Jensen | Aug 16, 2021 | Tax Court |
The general rule of thumb, is that the IRS can only go back three years. But, there are times when IRS can go back more than three years to seek taxes. If over 25% of gross income is omitted from a return, then IRS has six years to assess the tax, unless the filer...
by Leif Jensen | Aug 10, 2021 | Taxes |
The IRS sends out millions of letters every year, typically looking for more money. Many taxpayers try to assert a reasonable-cause defense to avoid a penalty and interest from those letters. In doing so, they have to prove their position was based on reasonable cause...
by Leif Jensen | Aug 9, 2021 | Investing, Taxes |
Long-term capital gains have favorable rates, over ordinary income. Profits from the sale or exchange of capital assets held over a year are generally taxed at 0%, 15% or 20%. There’s also the 3.8% surtax on net investment income of single filers with modified...
by Leif Jensen | Aug 4, 2021 | Taxes |
The fine for willfully failing to report foreign accounts are not capped, according to an appeals court decision. Under the statute, the penalty for willful failures is the greater of $100,000 or 50% of the highest balance in the overseas account. The IRS regulations...
