Connor Accountancy Corporation

Connor Accountancy Corporation At Connor Accountancy Corp., we welcome businesses looking for comprehensive tax, accounting, and business advisory help from our experienced professionals

08/17/2022

Tax Matters to Consider When Selling a Home

Individuals selling their home should consider the following tax matters:
Principal residence exclusion. Taxpayers may qualify to exclude from income all or part of any gain from the sale of their home ("principal residence exclusion"). To qualify for this exclusion, the taxpayer must meet ownership and use tests.
1. Ownership test. The homeowner must have owned the home for at least two years of the five-year period ending on the date of the sale.
2. Use test. The homeowner must have used the home as their main residence for at least two years of the five-year period ending on the date of the sale.
Limits on the exclusion. The principal residence exclusion is limited to $250,000 ($500,000 for joint filers). Also, taxpayers may only claim the exclusion once during a two-year period.
Note. In certain circumstances, taxpayers who fail the two-out-of-five-year ownership and use tests may still be eligible to claim a partial primary residence exclusion if their main reason for the home sale was a change in workplace location, a health issue, or another unforeseeable event.
Homeowners who can exclude all their gain on a home sale do not need to report the sale on their tax return unless a Form 1099-S, Proceeds from Real Estate Transactions , was issued to them.
Losses from the sale of a home. Taxpayers who sell their home at a loss (they sell the home for less than its adjusted basis) can't deduct the loss.
Note. The IRS provides worksheets for taxpayers to use to figure the adjusted basis of the home they sold, the gain or loss on the sale, and the amount of gain on the sale that can be excluded from income.
Taxpayers with multiple homes. Taxpayers with multiple homes can exclude gain only from the sale of their principal residence. They can't exclude any gain from the sale of any other home.
Note. Taxpayers with multiple homes can sell their main home, move to an already owned second home, such as a vacation home, and turn that second home into their principal residence. Once they satisfy the ownership and use tests for the second home, the taxpayer can exclude gain on the sale of this second residence.
Reporting the sale. Taxpayers who don't qualify to exclude all of the taxable gain from their income must report the gain from the sale of their home when they file their tax return. Anyone who chooses not to claim the exclusion must report the taxable gain on their tax return. Taxpayers who receive a Form 1099-S must report the sale on their tax return even if they have no taxable gain.

08/17/2022

Beware of Disaster Charity Scams

When disaster strikes, many people are moved to contribute to charities that help victims. But disasters also give scammers an opportunity to solicit donations for fake charities or to dupe victims seeking disaster relief.
Protect against disaster scams. Such scams usually begin with the scammer making unsolicited contact with a victim by telephone, social media, email, or in person. Always be wary of any unsolicited contact from someone asking for money. If you want to donate to disaster relief, choose a reputable charity and then contact that organization directly.
Note. Some scammers set up websites that look like they belong to actural well-known charities. Always confirm the web address before making a donation (or send a check by mail).
In addition:

• Charitable donations should always be made by check or credit card-so that the donor has a record of the donation, and so that any loss is limited if the donor does get scammed.
• Donors should never give out personal financial information (including social security number, credit card information, bank account numbers, or passwords to online financial accounts) to anyone requesting money. Say you'll send a check.
Note. Never donate to a charity using a debit card attached to a bank account. If you get scammed, your whole account could be wiped out.
Common disaster scams. Sometimes scammers will contact potential donors using an email, web address, or social media account that looks like it belongs to a well-known charity or using a spoof of a charity's phone number.
Other scammers pose as government employees offering to help disaster victims receive aid. This type of scam also involves spoofed phone numbers, email addresses, and social media accounts when disaster victims are contacted. These scammers don't want your money, however: They want your personal information so they can commit identity theft. Be aware of how, and if, state, local, and federal agencies contact victims after a disaster and be skeptical of any unsolicited contact.
Note. The IRS won't call disaster victims to help them file casualty loss claims and get tax refunds. Disaster victims who need tax assistance can call the IRS' disaster assistance line 866-562-5227 .
Donate to a reputable organization. People making donations to disaster relief should be sure to contribute to a reputable charity. Donors can use the IRS' Tax Exempt Organization Search to find a qualified charity or to verify that their chosen organization is a qualified charity. Donations to these real charities may be tax deductible.
For more information about scams related to natural disasters, see Checkpoint Federal Tax Coordinator ¶ T-10164.8.

Address

711 Jefferson Street # 103
Fairfield, CA
94533

Opening Hours

Monday 8am - 4pm
Tuesday 8am - 4pm
Wednesday 8am - 4pm
Thursday 8am - 4pm

Telephone

+19255657819

Website

Alerts

Be the first to know and let us send you an email when Connor Accountancy Corporation posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Business

Send a message to Connor Accountancy Corporation:

Shortcuts

Share

Category