IRS Remove Penalties

How to Reduce or Remove Three Common IRS Tax Penalties

IRS, Small Business Tips, Taxes

The first way to avoid a penalty here, of course, is to ask for permission rather than forgiveness—if you know you are going to need extra time to file for your returns, file for an extension before tax day using Form 4858 if you’re filing as a sole proprietor or Form 7004 if you’re operating as a corporation. While you’ll still need to pay what you expect your tax to be by tax day, this grants you extra time to get your affairs in order to file.

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What Happens to Your Taxes When You Sell A House Containing a Home Office?

What Happens to Your Taxes When You Sell a House Containing a Home Office?

Small Business Tips

Taxes on the sale of a home containing a home office depend on whether your office is located inside or outside of your home, and how you filed your deductions. If your office is within the walls of your home and you used the simplified deduction, there are no additional taxes on the sale of your home because of your home office. If your office was located outside of your home (like in a backyard shed), you will have to pay taxes on the portion of the sale tied to your home office. If you took deductions for depreciation of your home office, you will need to pay a tax on those deductions when you sell your home.

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