by Fresh Start Tax | Aug 26, 2012 | Income Tax Preparation, Representation
Fresh Start Tax L.L.C. of South Florida is a local tax specialty firm dealing with income tax, business and corporate tax preparation and planning. We also are IRS and State Tax Representation Experts. 954-492-0088
You can have your tax return ( income or business tax preparation ) prepared and filed through former IRS agents and managers who worked out of the local South Florida IRS offices. 954-492-0088. Free Consults for income tax preparation.
Tax Tips for our clients and potential clients in regard selling your home.
Taxpayers are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale. Make sure you can prove all sell dates.
If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ,$500,000 on a joint return in most cases. Check with us to make sure.
You will not eligible for the full exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.
If you can exclude all of the gain, you do not need to report the sale of your home on your tax return.
If you have a gain that cannot be excluded, it is taxable.
You must report it on Form 1040, Schedule D, Capital Gains and Losses.
You cannot deduct a loss from the sale of your main home.
Special Note : If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home.
If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.
Call us to find out more, 954-492-0088.
Income Tax Preparation, Former IRS Agents, Fresh Start Tax LLC , South Florida , Broward & Dade County, Tax Tips, Selling your Home
by Fresh Start Tax | Jul 22, 2012 | Back Taxes, Tax Returns
If you are Amending your Tax Return(s) and need tax help call us today. Since 1982 we have successfully amended thousands of tax returns.
Let us take the fear and worry out of this process.Call for a no cost consult and speak directly to a tax professional. 1-866-700-1040.
Since we were Former IRS agents and managers we can make this a seemly and easy process.
You will never talk to the IRS and we can work out a tax settlement called an offer in compromise.
Tax Tips on how to fix errors made on a IRS Tax Return.
If you discover an error after you file your tax return, you can correct it by amending your return.
1. When you amend a tax return you should file an amended return if your filing status, number of dependents, total income, tax deductions or tax credits were reported incorrectly or omitted.
2. When you SHOULD NOT AMEND!
If the IRS corrects math errors or requests missing forms such as Forms W-2 or schedules or when processing an original return.
3. Form to use.
Use a tax form 1040X, Amended U.S. Individual Income Tax Return, to amend a previously filed Form 1040, 1040A, 1040EZ, 1040NR or 1040NR-EZ.
Make sure you check the box for the year of the return you are amending on the Form 1040X.
An amended tax return cannot be filed electronically.
4. Multiple amended returns.
If you are amending more than one year’s tax return, prepare a separate 1040X for each return and mail them in separate envelopes to the appropriate IRS processing center. check for the correct Service Center.
5. Form 1040X The Form 1040X has three columns.
a.Column A shows original figures from the original return.
b.Column B shown the changes you are making.
c. Column C shows the corrected figures. There is an area on the back of the form to explain the specific changes and the reasons for the changes.
6. Other forms or schedules.
If the changes involve other schedules or forms, attach them to the Form 1040X. Failure to do this will cause a delay in processing.
7. Additional refund.
If you are amending your return to get an additional refund, wait until you have received your original refund before filing Form 1040X.
You are allowed to cash that check while waiting for any additional refund.
8. Additional tax.
Should you owe additional IRS tax, you should file Form 1040X and pay the tax as soon as possible to limit interest and penalty charges. If not call us to get a payment plan. 1-866-700-1040. Free Consult.
9. When to file- BEWARE NOT TO LOSE A TAX REFUND
To claim a refund, you must file Form 1040X within three years from the date you filed your original tax return or within two years from the date you paid the tax, whichever is later.
10.Normal processing time for an amended tax return is 8 to 12 weeks.
Call us for any tax help you need in this amended tax process.
Amending Tax Returns, Tax Tips from Former IRS Agents and Managers, Expert Tax Help
by Fresh Start Tax | Jul 21, 2012 | Tax News
Job searches can bring you may tax deductions you may be completely unaware of.
Knowing the Tax Law can save you valuable tax dollars.
Job search expenses can be tax deductible if you know them.
What you should know about deducting costs related to your job search:
1. To qualify for a job search deduction, your expenses must be spent on a job search in your current occupationn. Highlight this if not, this could be a potential IRS audit issue. You may not deduct expenses you incur while looking for a job in a new occupation.
2. You can deduct employment and outplacement agency fees you pay while looking for a job in your present occupation. Keep all receipts.
If your employer pays you back in a later year for employment agency fees, you must include the amount you received in your gross income, up to the amount of your tax benefit in the earlier year.
3. You can deduct amounts you spend for preparing and mailing copies of your resume to prospective employers as long as you are looking for a new job in your present occupation.
4. If you travel to look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area to which you traveled.Keep a travel log.
You may only deduct the travel expenses if the trip is primarily to look for a new job. The amount of time you spend on personal activity unrelated to your job search compared to the amount of time you spend looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job.
5. You cannot deduct your job search expenses if there was a substantial break between the end of your last job and the time you begin looking for a new one. Another key hot point with the IRS. What is substantial break?, up to the IRS
6. You cannot deduct job search expenses if you are looking for a job for the first time.
7. The amount of job search expenses that you can claim is limited.
To determine your deduction, use Schedule A, Itemized Deductions.
Job search expenses are claimed as a miscellaneous itemized deduction and the total of all miscellaneous deductions must be more than two percent of your adjusted gross income.
by Fresh Start Tax | Jul 16, 2012 | Tax News
There are certain requirements for Residents and Non-Residents Aliens when it comes to travel.
The Document you need.
You will need a tax clearance document, commonly called a “Departure Permit” or “Sailing Permit” from the Internal Revenue Service.
The following IRS Tax Rules apply for both residents and non-residents.
Tax Clearances – Residents, Non-Residents Aliens – Traveling Abroad
If you are either a resident or a nonresident alien departing the United States, you will usually have to show that you have complied with the U.S. income tax laws before departing from the United States.
You can do this by obtaining a tax clearance document, commonly called a “Departure Permit” or “Sailing Permit” from the Internal Revenue Service.
Exemptions.
Certain foreign diplomats, employees of foreign governments, students, trainees and exchange visitors do not need a departure permit.
Non Resident Aliens.
Nonresident aliens who did not have taxable income for the past year and who do not have taxable income for the tax year up to and including the date of departure, may use Form 2063 (PDF), U.S. Departing Alien Income Tax Statement, to apply for a departure permit. Nonresident aliens who have any U.S. taxable income must complete Form 1040-C (PDF), U.S. Departing Alien Income Tax Return, and pay your U.S. tax liability as shown on the Form 1040-C in order to receive a departure permit.
In certain cases, you may furnish a bond guaranteeing payment of tax, but you must pay your tax liability when your final income tax return is due.
Any tax you pay counts as a payment on your final return that you must file after the end of your tax year.
Resident Aliens.
If you are a resident alien and you did not have taxable income for the prior year and do not have taxable income for the tax year up to and including the date of departure, or you are a resident alien who is leaving only temporarily, use Form 2063 (PDF) to apply for a departure permit.
Resident aliens who have taxable income may still use Form 2063 to apply for a departure permit if the IRS is satisfied that your departure will not hinder the collection of tax.
If you are a resident alien leaving the United States with no definite plans to return for the year, you will have to complete Form 1040-C (PDF), and pay your tax liability as shown on the Form 1040-C in order to get a departure permit. In certain cases, you may furnish a bond guaranteeing payment of tax, but you must pay your tax liability when your final income tax return is due.
Any tax you pay counts as a payment on your final return that you must file after the end of your tax year.
IMPORTANT APPLICATION PROCESS – When and How to Apply for a Departure Permit
You must obtain your departure permit before you leave the United States.
You should apply for the departure permit no earlier than 30 days before you plan to leave, but at least two weeks in advance of your departure.
Where to get the permit.
To get your departure permit, visit your nearest Taxpayer Assistance Center (walk-in IRS office). If you are married to an alien who is leaving the country with you, both of you must go to the IRS office.
For information on the location of the Taxpayer Assistance Center (walk-in IRS office) nearest to you, call 800-829-1040, or visit www.irs.gov. or call our offices.
You must bring with you all the following records and information for the current year that apply to you:
1.A valid passport and your alien registration card or visa,
2.Copies of the last two years’ U.S. income tax returns with proof of payment of any balances due,
3.Proof of any payments of estimated tax for the past year and this year,
4.Substantiation of deductions for business expenses and itemized deductions claimed,
5.Documentation for dependents claimed.
6. A statement from each employer showing the wages paid and tax withheld from January 1st to the date of departure (For this statement you can use a payroll deduction slip for your last paycheck if it shows this information),
7.If you are self-employed, you must bring a profit and loss statement for the current year up to the date of departure,
8.Documents showing any gain or loss from the sale of personal and/or real property, including capital assets and merchandise,
9.Documents concerning scholarships or fellowship grants,
10.Documents indicating that you qualify for any special tax treaty benefits,
11.Document verifying your date of departure from the United States, such as an airline ticket, and
12.Document verifying your U.S. taxpayer identification number, such as a social security card or an IRS issued CP 565 showing your individual taxpayer identification (ITIN) number.
by steve | Mar 2, 2012 | IRS Tax Advice, IRS Tax Problem
If you are a Adoptive Parent you may find these IRS tax tips very helpful.
We are former IRS agents that can help and assist you in IRS tax filing and tax representation.
These tax tips are for our clients of Fresh Start Tax LLC.
Tax Tips for Adoptive Parents
If you have paid expenses to adopt an eligible child in 2011, you may be eligible to claim a tax credit of up to $13,360. Not a bad tax credit.
The expanded adoption credit.
The Affordable Care Act increased the amount of the credit and made it refundable, which means you can get the credit as a tax refund even after your tax liability has been reduced to zero. This can offer you a large tax refund.
For tax year 2011, you must file a paper tax return, Form 8839, Qualified Adoption Expenses, and attach documents supporting the adoption.
Taxpayers that are claiming the tax credit will still be able to use IRS Free File or other software to prepare their returns, but the returns must be printed and mailed to the IRS, along with all required documentation.
Documents can include a final adoption decree, placement agreement from an authorized agency, court documents or the State’s determination for special needs children. The documentation is an absolute must.
The Qualified Adoption expenses are reasonable and necessary expenses directly related to the legal adoption of the child. These expenses may include but are not limited adoption fees, court costs, attorney fees and necessary travel expenses.
The eligible child must be under 18 years old, or physically or mentally incapable of caring for himself or herself. Make sure your adoption qualifies for the tax credit
If your modified adjusted gross income is more than $185,210, your credit is reduced. If your modified AGI is $225,210 or more, you cannot take the credit.
Should you have any question regarding this credit or need professional tax prep call to hear more today.
