CPA ACCOUNTING AND TAX SOLUTIONS NAPLES FL (CPA)
FREQUENTLY ASKED FEDERAL INCOME TAX QUESTIONS (FAQ 1)
DATA AS OF CURRENT FEDERAL TAX LAW, WE WILL MONITOR AND REPORT NEW TAX LAW LEGISLATION
While we wish Federal Taxation was simple and straightforward, unfortunately it is not. We thought we would begin posting questions to frequently asked questions. Few questions relating to Federal income Taxes can be answered with “YES or NO”, or in a few words. We at CPA Accounting and Tax Solutions will try to convey the basic information in as few words as possible. The federal Tax rules have become so complex, highly inter-related, that very frequently the answer to your question starts with “IT DEPENDS”.
A few simple examples:
- Is my interest taxable? It depends on whether it is tax exempt interest or non tax exempt.
- Is my inheritance taxable? Most likely NO, but it depends.
It is always wise to check with your Tax and/or Accountant service if anything unusual has occurred in your life, or if you have new sources of income. If you typically do your own Federal Tax preparation, and you have had a Life change or a Tax change, it is really important to minimally have a consultation with a professional company providing Tax Preparation services. We at CPA Accounting and Tax Solutions, Naples FL, stand ready to assist you with your tax issues. Please don’t hesitate to call or email us. We are happy to help you, often at no charge, if you retain us for your Tax Preparation.
REAL ESTATE TAX ISSUES:
- If I sell my principal residence, will I need to pay Federal Taxes if I have a gain on the sale? Again it depends on whether in fact you have a gain, and if so, how large is the gain. Gains on the sale of your principal residence are tax free up to $500,000 for married people filing a joint return, and $250,000 for all other tax filers. In 2013, gains on the sale of your principal residence do come into play in the new 3% Investment Income tax calculations. We have covered that high earner tax in one of our Blog Articles on our Web Site, www.CPAAccTax.com.
- If the sale of my principal residence results in a loss, may I deduct the loss? NO