Renting Out a Second Home
Posted on March 3rd, 2021
In general, income from renting a vacation home for 15 days or longer must be reported on your tax return on Schedule E, Supplemental Income, and Loss. You should also keep in mind that the definition of a “vacation home” is not limited to a house. Apartments, condominiums, mobile homes, and boats are also considered vacation homes in the eyes of the IRS. Tax rules on rental income from second homes can be confusing, especially if you rent the home out for several months of the year and use the home yourself. Read More…
Tags: Other Income, Real Estate
Special Tax Rules for Children With Investment Income
Posted on March 3rd, 2021
Special tax rules may apply to some children who receive investment income. The rules may affect the amount of tax and how to report the income. Here are five important points to keep in mind if your child has investment income this year: Read More…
Tags: Other Income, Tax Tips
Tax Tips for Students With a Summer Job Income
Posted on July 6th, 2020
Whether the goal is to gain experience or earn some spending money or help pay for college, summer is the prime job season for teens and college students. This year, however, with the coronavirus pandemic, the job situation has not been as easy – not to mention that it is starting later than usual. Nonetheless, if you are a high school or college student (or the parent of one) who has been lucky enough to find summer employment, here’s what you should know about income earned during the summer months: Read More…
Tags: Other Income, Tax Tips
Tips for Taxpayers Who Make Money From a Hobby
Posted on February 5th, 2020
Many people enjoy hobbies that are also a source of income. From soap making to pottery and jewelry making to calligraphy, these activities can be sources of both fun and finances. Taxpayers who make money from a hobby must report that income on their tax return. Read More…
Tags: Other Income, Tax Return
Avoid IRS Audits: Fix the 1099 Prepaid-Rent Mismatch
Posted on November 15th, 2019
Two questions:
- Are you prepaying your 2020 rent so that you have a big 2019 tax deduction?
- How do you identify in your accounting records the monies you put on your IRS Form 1099-MISC for the business rent payments to your landlord?
Tags: Audit, Other Income, Real Estate
What to Do if You Receive an IRS CP2000 Notice
Posted on July 1st, 2019
An IRS CP2000 notice is mailed to a taxpayer when income reported from third-party sources such as an employer, bank, or mortgage company does not match the income reported on the tax return.
It is not a tax bill or a formal audit notification; it merely informs you about the information the IRS has received and how it affects your tax. It is, however, important to pay attention to what your CP2000 notice states because interest accrues on your unpaid balance until you pay it in full. Read More…
Tags: Other Income