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Claiming a Simplified Home Office Deduction During COVID-19

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When it comes to taking a home office deduction on your annual taxes, there are two ways to do it—a  simplified home office deduction or a regular deduction. 

  • With the simplified option, you use the square footage of your home office space (up to 300 square feet) and multiply it by $5 per square foot for a deduction of up to $1,500.
  • With regular method, you use precise calculations that allow you to deduct expenses such as mortgage interest, insurance, utilities, taxes, repairs and more.

So, the question becomes, do you qualify to take a home office deduction? If so, which one should you use? Let’s dive in. [Read more…] about Claiming a Simplified Home Office Deduction During COVID-19

IRS Home Office Rules: What Counts During the Coronavirus Pandemic

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With employees across the country now unexpectedly working from home, life is suddenly much different and it raises many questions. From how to stay productive in a house full of distractions, to the best way to set up a makeshift home office. You may be learning on the fly how to navigate these uncharted waters.

One topic that has come up is whether new remote workers will have any basis for taking a home office deduction on their tax returns. The answer is… it depends. [Read more…] about IRS Home Office Rules: What Counts During the Coronavirus Pandemic

Tax Strategies: How to Play the “Tax Game” Like the Wealthy

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Looking for tax strategies to owe less to the IRS this April? Or better yet, going after a larger refund? The tax laws are always changing, so it makes sense to maximize your return.

In the United States, we have a progressive tax system. Meaning, people who earn more should pay a higher tax rate than those who pay less. This approach is based on fairness and an “ability to pay”.

What is interesting, however, is that the American tax system is only progressive up to a point. It is progressive for lower and middle class Americans, but it is not for wealthy individuals. [Read more…] about Tax Strategies: How to Play the “Tax Game” Like the Wealthy

How To Sell Your Primary Residence And Not Pay Taxes On The Profit

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Real estate is a great investment, and selling your home will usually net you a large profit. However, that large profit also can mean a huge tax bill at the same time, which can dampen your plans to move to a new location or reduce the amount that you “score” from the sale of your residence.

Fortunately, there are critical moves you can do to reduce the taxes you owe when you sell your primary residence.
[Read more…] about How To Sell Your Primary Residence And Not Pay Taxes On The Profit

What is Wrong With the American Tax System for the Middle Class?

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The American tax system is complex. It’s also ineffective: our tax rates are high, yet our budget deficit is even higher. Add to that the failing state of many school systems, infrastructure, and health care accessibility in our country, and the whole question becomes even messier.

Also, how and why has the American tax code grown to 74,608-pages long? Even Certified Public Accountants can’t stay up-to-date with the ever-growing code requirements.

So what gives? What is wrong with the American tax system and how does it disproportionately tax the middle class? [Read more…] about What is Wrong With the American Tax System for the Middle Class?