If you’re an Airbnb host, you should know that taxes for home-sharing businesses are similar to real estate rentals, but there are some differences. Airbnb hosts are typically considered rental property owners rather than small business owners for tax purposes.

The way Airbnb hosts deduct expenses differs depending on whether they rent out their entire home or just a portion of it. Some deductions must be calculated based on the number of rental days and the portion of the rented home.

Even if they owe nothing, every American who earned money in a given year must file a tax return.; they may be due a refund for taxes already paid throughout the year or may be required to pay additional taxes.

If you do not file your taxes or do not pay the taxes you owe, you may face several serious consequences. The IRS may assess monthly late payment penalties and interest on the amount owed. The maximum amount could be up to 47.5% of what you owe, including 22.5% for late filing and 25% for late payment.

The OASDI, also known as Old Age, Survivors, and Disability Insurance tax, is a federal income tax levied in the United States to fund the Social Security program. The tax, like the Medicare program, is part of the Federal Insurance Contributions Act and is automatically deducted from your paycheck.

State and local property taxes are typically deductible from the property owner’s federal income taxes. Any state, local, or foreign taxes levied for the general public welfare are deductible real estate taxes. They do not include taxes levied on home improvements or services such as trash collection.

Asset location is a tax-saving strategy that takes advantage of various investments receiving different tax treatments. To maximize after-tax returns, an investor uses this strategy to determine which securities must be held in tax-deferred accounts and which in other taxable accounts.

Tax diversification is a strategy considering various tax treatments across the investment accounts you will eventually use for retirement income. Because different types of accounts and investments provide different tax benefits, you can gain more control over your taxes by diversifying your investments.

Why does the Internal Revenue Service audit some small businesses while ignoring others? What actions can business owners take that may result in a small business tax audit? Sometimes it’s by chance, but certain financial practices can lead to an IRS audit for a small business.

You may only want to keep some of your paperwork after filing your tax return, including your W-2, 1099s, and other receipts. It’s safe to say you don’t want to think about taxes at all. But don’t toss them out as soon as you mail your tax return or submit your electronic forms.

The Internal Revenue Service recommends that taxpayers should keep their documents for three years after the date of filing

This year, use our handy tax preparation checklist for 2022 to make tax preparation easier. We will let you know what tax documents you need to know to organize. Tax season can be stressful, but we are here to assist you.

New changes in tax regulations are now in effect, potentially increasing paychecks and lowering income tax for many Americans who are still reeling from sky-high prices as the new year begins.

Even though tax season is just around the corner, it’s always early enough to begin making financial preparations for the upcoming changes to tax laws in 2023

Why Having a Tax Planning Strategy is Important You've probably heard of a tax strategy, but you need help figuring out where to begin. Even thinking about taxes can make you nervous. The overarching goal of tax strategies is to increase your wealth. It is critical to...

Depreciation it is a expense claimed by a taxpayer on a tax return to make up for the decline in value of tangible assets used in income-generating activities is known as tax depreciation. Tax depreciation distributes costs over several periods, much like accounting depreciation does. As a result, depreciable assets’ tax values gradually decrease throughout their useful lives.

Taxes are just a part of the deal for real estate investors. However, 1031 exchanges, named after IRS Section 1031 of the IRS tax code, allow you to avoid capital gains. If you are the owner of an investment property and are considering selling it and purchasing another, you should be aware of the 1031 tax-deferred exchange.

While it’s generally recommended to file your taxes as quickly as possible, is that always the best course of action? Depending on your circumstances, it might be better to hold off filing the most accurate return. The following information will help you decide when to file your taxes.

A higher income may result in increased federal and state tax obligations. You might believe your tax burden will increase because you earn more money, but that isn’t always the case.You might be one of the high earners with a target on your back. The IRS has a plan in place to target  high-income earners. The surprising thing about this is how much lower than most people would expect they draw the demarcation line.