Tax Tips For Those Selling Their Homes

If you sell your house there are certain benefits that you may get from the Internal Revenue Service (IRS). Here are a few tax tips for consultants and you on how to benefit.

If you have used the home for two out of the last five years, you can exclude 250,000 dollars from your income, the capital gain is tax free. But you may not exclude the gain if you already did so on another house in the last 5 years.

You must report all gains that cannot be excluded under the $250,000 limit. And if there is a loss on the sale of the home, you cannot deduct it. Sorry.

There are worksheets that help you determine whether you made a gain or loss on the sale. These can be found in IRS publication 523, on the IRS.gov website.

Having more than one house limits you to excluding gains from the sale of your main house only. This is the house that you usually spend most of your time in. Vacation homes cannot excluded from capital gains tax.

First time home-buyers are required to repay the credit if they do not use the property as their primary residence for more than 36 months after getting a home-buyer credit. The details should be filed with your tax returns using form 5405 the year you stopped using the house as your primary residence.

Be sure to let the IRS and the United States Postal Service know about any changes in address so that you do not lose correspondence and refunds from them.

The IRS publication for selling your home, 523, can be found on their website www.IRS.gov or call 800-TAX-FORM (800-829-3676) to receive a copy.

Tax Cautions Delivered By The Internal Revenue Service Concerning Fraudulent Tax Returns

The Internal Revenue Service (IRS) Advises: Scammers might attempt to lure you in the church seat.

“A few con artists are within churches and additional areas, globally, attempting to lure individuals into sending them details by sending out fake tax return 2011 forms that say people have cash coming to them,” the IRS cautions.

“Folks are made to believe that they ought to file 2011 tax returns with the Internal Revenue Service to receive monies from tax credits, rebates and/or federal tax refunds, funds the recipients of these fake forms are not eligible to receive, stated the spokesperson for the Internal Revenue Service,” Mr. Michael Dobzinksi.

“This fraud continues to occur although the deadlines to file a tax return ended in April, months ago,” stated Michael Dobzinksi. “The IRS has placed fliers on church bulletin boards,” says Mr. Dobzinksi.

“In a few instances, individuals are asked to pay a fee – with the scammers disappearing with the payment,” Michael Dobzinksi continued. At times, the con artists attempt to deceive the government, also referred to as “uncle Sam” by requesting funds back from the fake tax returns that were filed: The late-filed 2011 tax return account funds held back really were not withheld,” Mr. Dobzinksi stated.

“It is happening globally, which includes areas such as FL (Florida), with several instances developing in the middle section of the state,” the IRS representative alleged.

Michael Dobzinksi delivered the long-standing caution: “If it seems too good to be real, perhaps it is.”

“A deal that appears too good to be real includes proposals for free cash ‘devoid of needing to provide adequate papers,’” Mr. Dobzinksi stated.

Michael Dobzinksi continues, saying, “These frauds have been showing up in municipal churches nationwide.” “Scammers are steering towards church worshippers, manipulating their good purposes and trustworthiness. These frauds are frequently delivered by way of “word of mouth” amid innocent and goodhearted individuals; tell their acquaintances and family members.

Mr. Dobzinksi stated that he did not know of any church names the scammers are targeting at this time.

If anybody has questions concerning these tax credits for 2011 tax, they ought to go to the Internal Revenue’s actual web site, located at https://www.irs.gov/, or they need to contact the IRS by telephone, at their 1-800 #, toll-free, 1-800-829-1040. People can go to their local Internal Revenue office as well and speak with a taxpayer assistant if taxpayers have any questions regarding tax return 2011 and the fake returns saying they are eligible for refunds, rebates or cash back.