When a taxpayer sells their home, they may not have to pay taxes on the money they gain. If the gain on the sale of a home is not taxable, it may not need to be reported to the IRS. There are several factors to consider to determine eligibility for an exclusion. One factor is the length of time someone has lived in their home. If someone has lived in their home and used it as their main residence for 2 of the previous 5 years, they may be able to exclude some or all of the gain from the
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IRS Tax Tip 2025-33, May 27, 2025 The IRS sends notices and letters when it needs to ask a question about a taxpayer’s federal tax return, let them know about a change to their account or request a payment. Don’t panic if mail comes from the IRS – they’re here to help. When a taxpayer receives mail from the IRS, they should: Read the letter carefully. Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes any steps the taxpayer needs to take. A notice may reference changes to
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Correctly classify your business. Decide on the appropriate business entity (sole proprietorship, partnership, corporation, S corporation or LLC) to determine tax filing requirements and legal considerations. Get your employer identification number (EIN). An EIN, also known as a federal tax identification number, is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may apply online. This is a free service offered by the Internal Revenue Service, and you can get your EIN immediately. You must check with your state to make sure you need a state
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Convert recurring invoices into recurring payments In a nutshell: You can now convert recurring invoices into recurring payments from customers through QuickBooks Payments. Promote predictable cash flow and stop chasing down payments. Setting up recurring payments is simple, and you won’t need to maintain and store customers’ credit card records. First, create a recurring payment from a recurring invoice in the Customers section of the Sales tab. The recurring payment is then sent to your customer as a request. After they agree to the recurring payments, they’ll securely enter their payment information through an online portal. That means less hassle and headache for
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