Tehachapi's Online Community News & Entertainment Guide
Tehachapi's Online Community News & Entertainment Guide
Sorted by date Results 1 - 5 of 5
Extensions Whether you file a tax return by the April due date, or obtain an extension to file, filing an annual tax return is mandatory if your income is above a certain level, which will vary depending upon your filing status. There are many reasons to file an extension. You may be waiting for an important document such as a late 1099, or K-1 form showing income which needs to be reported on your tax return, you may be overseas and unable to file by the April deadline, or you may just be a...
With the tough economic times we are currently enduring, many people unfortunately find themselves unable to meet their financial obligations. In preparing our clients’ tax returns we are seeing an increasingly larger number of 1099-C (Cancellation of Debt) and 1099-A (Acquisition or Abandonment of Secured Property) forms. What are these forms, why are you receiving them, and what should you do if you receive one? When property is security for a loan and the lender forecloses on the loan, or p...
In our capacity as Certified Public Accountants and Enrolled Agents, our office has had the delightful opportunity to deal with the Internal Revenue Service and the California Franchise Tax Board regarding client notices from taxing authorities. When a taxpayer receives a letter that states something like, “We have determined that you owe us a bunch of money”, their tendency is to just get out the checkbook and pay the amount the taxing authorities say is due. After all, they are the gov...
The answer is maybe! Only tax law is strange enough to have three different answers to the same question. Let us wade through the murky water together and I will give you some examples of different answers to the same question. The first factor to consider is, did you own the property you sold for more than one year? Exception #1 – Tax law differentiates between property held more than a year and property held a year or less. If you held the property more than a year, it is taxed at a more f...
I have noticed confusion in the people I talk to regarding which tax credits are expiring in 2013, and which will continue into 2014 and later years, hence this article to help refresh your memory. First, let us review the difference between a tax deduction and a tax credit. A tax deduction reduces the amount of income that is subject to tax. The itemized deductions for mortgage interest, real estate taxes, contributions, etc are examples. If you earn $60,000 but have $15,000 in itemized deducti...
