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Renting Out a Second Home

Renting Out a Second Home

by | Mar 11, 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. Minimal Rental Use However, There is one provision that is not complicated; homeowners who rent out their property for 14 or fewer days a year can pocket the rental income tax-free. In other words, if you live close to a vacation destination such as the beach or mountains, you may be...

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Avoiding an IRS Tax Audit

Avoiding an IRS Tax Audit

by | Mar 4, 2021 |

Just 0.45 percent of taxpayers were audited in fiscal year 2019. Still, with taxes becoming more complicated every year, there is an even greater possibility of confusion turning into a tax mistake and an IRS audit. Avoiding "red flags" like the ones listed below could help. Red Flags That Trigger IRS Audits Claiming Business Losses Year After Year When you operate a business and file Schedule C, the IRS assumes you operate that business to make a profit. Claiming losses year after year without any profit raises a red flag with the IRS. Failing to Report Form 1099 Income Resist the temptation to underreport your income if you are self-employed or have a second job. The IRS receives the same 1099 forms that you do, and even if you didn’t receive a Form 1099 when you think you should have,...

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Tax Tips for February 2021

Tax Tips for February 2021

by | Feb 26, 2021 | ,

Click on the links below to jump to each section in this article: Do You Need To File a 2020 Tax Return? Relief for Taxpayers Struggling With Tax Debts Five Tax Tips for Older Americans New Year, New Withholding? Who Qualifies for the Earned Income Credit   Do You Need To File a 2020 Tax Return? Most people file a tax return because they have to, but even if you don't, there are times when you should - because you might be eligible for a tax refund and not know it. The tax tips below should help you determine whether you're one of them. General Filing Rules Whether you need to file a tax return this year depends on several factors. In most cases, the amount of your income, your filing status, and your age determine whether you must file a tax return. For example, if you're single...

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Integra International Audit & Accounting Alert – February 2021 (Issue 2)

by | Feb 25, 2021 |

AT-A-GLANCE For the past quarter century, every two years the Association of Certified Fraud Examiners (ACFE) has issued a comprehensive analysis of the impact of financial fraud. However, with the rise of the coronavirus pandemic this past year, the ACFE has supplemented the biennial report with quarterly updates assessing specifically the impact of COVID-19 on fraud within organizations. This issue of the Audit & Accounting Alert summarizes the latest findings. Our Worldwide Update is again split into two sections. The first covers COVID-19 news from organizations across the globe, while the second covers other news. Gerald Herter - Editor   Challenges to Financial Reporting and Audit Oversight Insights from a PCAOB insider and recent SEC and FEI reports The United States...

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Taxable vs. Nontaxable Income

Taxable vs. Nontaxable Income

by | Feb 23, 2021 |

Are you wondering if there's a hard and fast rule about what income is taxable and what income is not taxable? The quick answer is that all income is taxable unless the law specifically excludes it. But as you might have guessed, there's more to it than that. Taxable income includes any money you receive, such as wages, tips, and unemployment compensation. It can also include noncash income from property or services. For example, both parties in a barter exchange must include the fair market value of goods or services received as income on their tax return. Nontaxable Income Here are some types of income that are usually not taxable: Gifts and inheritances Child support payments Welfare benefits Damage awards for physical injury or sickness Cash rebates from a dealer or manufacturer for...

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Social Security Benefits and Taxes: The Facts

Social Security Benefits and Taxes: The Facts

by | Feb 19, 2021 |

What to Know About Social Security Benefits and Taxes Social Security benefits include monthly retirement, survivor, and disability benefits; they do not include Supplemental Security Income (SSI) payments, which are not taxable. Generally, you pay federal income taxes on your Social Security benefits only if you have other substantial income in addition to your benefits. Examples include wages, self-employment, interest, dividends, and other taxable income that must be reported on your tax return. Your income and filing status affect whether you must pay taxes on your Social Security. An easy method of determining whether any of your benefits might be taxable is to add one-half of your Social Security benefits to all of your other income, including any tax-exempt interest. If you...

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Employer Tax Credit Extended for Payroll Workers

Employer Tax Credit Extended for Payroll Workers

by | Feb 17, 2021 | ,

The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, made several changes to employee retention tax credits. These tax credits were previously made available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The most notable change was the modification of the Employee Retention Credit (ERC). Several of the changes apply only to 2021, while others apply to both 2020 and 2021. As such, employers can take advantage of the newly-extended employee retention credit, designed to make it easier for businesses that choose to keep their employees on the payroll - despite challenges posed by COVID-19. Claiming the Refundable Tax Credit Eligible employers can now claim a refundable tax credit against the employer share of Social Security tax...

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What’s New for 2020 Tax Returns

What’s New for 2020 Tax Returns

by | Feb 12, 2021 |

What to be Aware of for your Tax Returns As always, taxpayers should be aware of several key items involving credits, deductions, and refunds when filing their tax returns. Let's take a look: 1. Recovery Rebate Credit/Economic Impact Payment. In January, the Treasury Department and the IRS began sending the second round of Economic Impact Payments (EIP2) to millions of Americans as part of the implementation of the Coronavirus Response and Relief Supplemental Appropriations Act. As with the first round of Economic Impact Payments (EIP1), taxpayers don't need to take any action to receive these payments. Taxpayers who didn't receive an advance payment should review the eligibility criteria when they file their 2020 taxes because many people, including recent college graduates, may be...

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Tax Filing Season Starts February 12

Tax Filing Season Starts February 12

by | Feb 3, 2021 |

Although tax season usually starts in late January, this year, the tax filing season is delayed until February 12, 2021. The delayed start date for individual tax return filers allowed the IRS time to do additional programming and testing of IRS systems following the December 27, 2020, tax law changes that provided a second round of Economic Impact Payments and other benefits to many taxpayers. This programming work is critical to ensuring IRS systems run smoothly to minimize refund delays and ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return. File Electronically for Faster Refunds Last year's average tax refund was more than $2,500. Once again, the IRS anticipates that nine out of 10 taxpayers will...

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Integra International Audit & Accounting Alert – January 2021 (Issue 1)

by | Jan 30, 2021 | , ,

AT-A-GLANCE For the past quarter century, every two years the Association of Certified Fraud Examiners (ACFE) has issued a comprehensive analysis of the impact of financial fraud. However, with the rise of the coronavirus pandemic this past year, the ACFE has supplemented the biennial report with quarterly updates assessing specifically the impact of COVID-19 on fraud within organizations. This issue of the Audit & Accounting Alert summarizes the latest findings. Our Worldwide Update is again split into two sections. The first covers COVID-19 news from organizations across the globe, while the second covers other news. Gerald Herter - Editor   Fraud in the Wake of COVID-19 Latest report tracks the trending increase in fraud levels In April 2020, the Association of Certified...

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