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If you and your spouse file a joint return for the year of the sale, you can exclude the gain if either of you qualify for the exclusion. To exclude gain, a taxpayer must both own and use the home as a principal residence for two of the five years before the sale. The two years may consist of 24 full months or days. Short absences, such as for a summer vacation, count as periods of use. Longer breaks, such as a one-year sabbatical, do not. If you do not meet the ownership and use tests, you may be allowed to exclude a reduced maximum amount of the gain realized on the sale of your home if you sold your home due to health, a change in place of employment, or certain unforeseen circumstances.

Unforeseen circumstances include, for example, divorce or legal separation, natural or man-made disaster resulting in a casualty to your home, or an involuntary conversion of your home. Send us a message for more! This applies whether a person lives inside or outside the United States. The foreign income rule also applies regardless of whether or not the person receives a Form W-2, Wage and Tax Statement, or a Form information return. Foreign source income includes earned income, such as wages and tips, and unearned income, such as interest, dividends, capital gains, pensions, rents and royalties. An important point to remember is that citizens living outside the U. However, the exclusion does not apply to payments made by the U.

Please contact us if you feel you may have earned foreign income to learn more! With more and more United States citizens earning money from foreign sources, the IRS reminds people that they must report all such income on their tax return, unless it is exempt under federal law. Deductions decrease the amount of income subject to taxation. There are four types of deductible non-business taxes: State and local income taxes, or general sales taxes; Real estate taxes; Personal property taxes; and Foreign income taxes. You can deduct estimated taxes paid to state or local governments and prior year's state or local income tax as long as they were paid during the tax year.

If deducting sales taxes instead, you may deduct actual expenses or use optional tables provided by the IRS to determine your deduction amount, relieving you of the need to save receipts. Sales taxes paid on motor vehicles and boats may be added to the table amount, but only up to the amount paid at the general sales tax rate. Taxpayers will check a box on Schedule A, Itemized Deductions, to indicate whether their deduction is for income or sales tax. Deductible real estate taxes are usually any state, local, or foreign taxes on real property. If a portion of your monthly mortgage payment goes into an escrow account and your lender periodically pays your real estate taxes to local governments out of this account, you can deduct only the amount actually paid during the year to the taxing authorities.

Your lender will normally send you a FormMortgage Interest Statement, at the end of the tax year with this information. Call us or contact us today to find out how we can save you money! To claim a deduction for personal property tax you paid, the tax must be based on value alone and imposed on a yearly basis. For example, the annual fee for the registration of your car would be a deductible tax, but only the portion of the fee that was based on the car's value. Did you know that you may be able to deduct certain taxes on your federal income tax return?

You may even have to pay tax on the gift. The person who received your gift does not have to report the gift to the IRS or pay either gift or income tax on its value. You make a gift when you give property, including money, or the use of or income from property, without expecting to receive something of equal value in return. If you sell something at less than its value or make an interest-free or reduced-interest loan, you may be making a gift. There are some exceptions to the tax rules on gifts. The following gifts do not count against the annual limit: Tuition or medical expenses that you pay directly to an educational or medical institution for someone's benefit Gifts to your spouse Gifts to a political organization for its use Gifts to charities If you are married, both you and your spouse can give separate gifts of up to the annual limit to the same person without making a taxable gift.

For newlyweds, the tax scenario can begin when the bride says "I do" and takes her husband's surname, but doesn't tell the SSA about the name change. If the couple files a joint tax return with her new name, the IRS computers will not be able to match the new name with the SSN. Similarly, after a divorce, a woman who had taken her husband's name and had made that change known to the SSA should contact the SSA if she reassumes a previous name. It usually takes two weeks to have the change verified. The form is available on the agency's Web site, www. The SSA Web site provides the addresses of local offices.

Alternatively, please contact us as we can be of even greater assistance with your spousal situation. Newlyweds and the recently divorced should make sure that names on their tax returns match those registered with the Social Security Administration SSA.

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A mismatch between a name on the tax return and a Social Security number SSN could unexpectedly increase a tax bill or reduce the size of any refund. If gllenham, your spouse and dependents had health insurance coverage dafing year, fating will indicate this by simply checking a box on your tax return. Throughout summer you will notice glenhqm sections of Hopewell Rec. Park will be cordoned off occasionally to accommodate some of our summer programs and camps. Park is located at Route near the Library and Wells Fargo. We are asking that town residents please take notice of these designated areas, which may change weekly, and avoid those sections of the park during program hours.

Your cooperation is very much appreciated and we invite you to take this opportunity to visit the many other parks that we have throughout East Fishkill such as: Offering a playground, walking path, ball fields, basketball courts, tennis courts, and ball fields. Offering a playground and open field. Route 52 Complex Soccer Fields at Route 52 Offering a playground, walking path, pavilion, and open fields. Offering a playground, ball field, and basketball court. Offering lake swimming, playground, refreshments, and pavilion.


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