Tax Advocate Center

5 Things You Can Still Do Now To Minimize Your 2025 Tax Bill One of the worst ways to start the new year is with holiday debt and a looming tax bill.?However, whether it’s adjusting contributions or planning?deductions, small, year-end actions can lead to bigger rewards later. https://lnkd.in/gREsN9-n

I'm Selling My House and Netting $435,000. Do I Have to Worry About Capital Gains Taxes? Profits from a home sale are subject to capital gains taxes. This sale will count toward your total capital gains for the year, and will be taxed at the normal rates of either 0%, 15% or 20%. That said, when it comes to home sales, the IRS allows you to exempt a portion of the profits from your taxes. Specifically, if you sell your primary residence you can exempt up to $250,000/$500,000 (single/married) from your taxes over your lifetime. https://lnkd.in/gNuuGmBQ

Boost Your Giving: IRS Raises Limits on Tax-Free Charitable Donations from IRAs WASHINGTON, D.C.?— The?Internal Revenue Service?(IRS) has issued a significant reminder to owners of individual retirement arrangements (IRAs) aged 70? and older, highlighting an increase in the limit for tax-free charitable contributions via qualified charitable distributions (QCDs) for the year 2024. The new limit allows eligible individuals to make donations of up to $105,000, a significant rise from the previous cap of $100,000. https://lnkd.in/gdSPSFQP

How to avoid fake charities, holiday donation scams that promise local aid DENVER (KDVR) — The city of Denver is continuing to work toward getting those in need off the streets. A spokesperson told FOX31 that the “All In Mile High Initiative” has moved a total of 2,064 people indoors since July 2023. Approximately 83% of the people served are still utilizing housing and more than 300 square blocks have been permanently closed to tent encampments. https://lnkd.in/gFb9XWB9

Over 800 IRS employees owe millions in back taxes after audits pushed by Ernst EXCLUSIVE —?Over 800?Internal Revenue Service?employees still owe millions in back taxes despite heavy criticism from Sen.?Joni Ernst?(R-IA), who is hoping the level of tax waste will be squashed by billionaire?Elon Musk, the newly tapped co-leader of the?Department of Government Efficiency. In a letter to the Iowa senator sent on Nov. 8 and shared exclusively with the Washington Examiner, the IRS noted that of the 2,044 employees who reported having balances totaling more than $12 million, 860 employees still have not paid overdue taxes. Only 20 of the 70 employees who “willfully evaded” paying their taxes were removed. https://lnkd.in/gdjPMrbu

This Overlooked Strategy Saves Taxes and Lets You Be Charitable at End of Year As you gear up at the end of year to prepare for?your taxes, it’s good to look for ways to limit any potential tax liability, especially if you make income outside of a standard W-2 employment job. For people who also like to engage in charitable giving, there’s an overlooked strategy that could achieve both aims. Gifting some of your stocks is a way to cut your tax bill but also support a nonprofit organization or charitable cause. https://lnkd.in/g_jR4Hvp

Man is 'not dead anymore' after long battle with IRS, which mistakenly labeled him deceased A Colorado man spent nearly a year trying to rectify a life-altering mistake: the Internal Revenue Service had declared him dead, despite him being very much alive. Phil Anderson detailed his situation with?television station KMGH-TV in August, claiming his state tax accounts were locked after the IRS had declared him dead. https://lnkd.in/gsqn6da3

The Top 10 Most Popular Strategies for Reducing Taxes in Retirement The taxman cometh, even for those in retirement. And if you?don't have a plan?to reduce what you owe in your Golden Years, then the IRS may end up taking more than it is entitled to. Money in your pocket is always better than in the government's. However, according to a recent?Northwestern Mutual?study,?one out of every three Americans?is failing to plan on how to reduce their retirement tax burden. The old saying, failing to plan is planning to fail, holds true. https://lnkd.in/gVJyUc-d

Is Vehicle Sales Tax Deductible? What You Need To Know Buying a car is undeniably expensive. After finalizing your deal, you’ll need to include the costs of tax, title and registration fees. Naturally, you may wonder, is vehicle sales tax deductible? In some cases, the answer is yes. Learn about vehicle sales tax and what you have to do to claim your deduction. https://lnkd.in/g7f3-TdD

RMDs Are Due December 31. What Happens If I Don't Take a Distribution? In almost all cases the IRS enforces its rules through fines and penalties. This is the case of Required Minimum Distributions (RMDs).? As always, your RMDs are due by the end of the year. In this year, if you don't take out the minimum distributions by December 31, 2024, the?IRS will penalize you?with a special excise tax. This tax is worth 25% of the amount not withdrawn, reduced to 10% if you correct the error within two years. This penalty can also be waived on appeal if you can demonstrate that your shortfall was based on good-faith error and that you are taking steps to correct it. And if it’s your first RMD, you may have some wiggle room until April. https://lnkd.in/g2b_82EA