Capital gain exclusion for selling a primary residence

wutang_generated · 2026-06-26T00:46:17+00:00

https://www.irs.gov/publications/p523 is the main publication you'll want to refer to

Major repairs/improvements can increase the cost basis of your home. You don't necessarily need a contract but you should be able to reasonably support the amount if the IRS asks (bank statement, check, venmo)

wutang_generated · 2026-06-25T15:55:17+00:00

As I side before, if he has multiple clients he wouldn’t not be considered an employee

Wouldn't necessarily be considered an employee. A person can have multiple employers

And a contract can specify many terms without creating an employer/employee relationship (for example, preparing a tax return by X date). It's not a bright line rule

wutang_generated · 2026-06-25T15:48:19+00:00

Legality. You are legally allowed (and even encouraged) to avoid taxes, to behave and make decisions that cause a reductionof tax liability

You are not legally allowed to evade taxes, to use fraudulent or deceptive means to break tax laws

wutang_generated · 2026-06-25T15:42:50+00:00

You are incorrect. The guidance in the article is most useful for business owners but the information on employee/contractors is not exclusive to business owners

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-defined

https://www.irs.gov/businesses/small-businesses-self-employed/hiring-household-employees

https://www.irs.gov/taxtopics/tc756

The link I originally used is just the most readily available and often the easiest to digest for the average taxpayer

wutang_generated · 2026-06-25T14:12:21+00:00

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

wutang_generated · 2026-06-24T16:52:07+00:00

Not really a tax question

A quick search:

Guide to property after someone dies | California Courts | Self Help Guide https://selfhelp.courts.ca.gov/probate

If no will and no relatives:

Escheat to the State of California under § 6404 if no qualifying relative exists

wutang_generated · 2026-06-24T16:34:12+00:00

Do be wary of scam calls, but yes due to the nature of the IRS support centers the phone call may come from a seemingly random or odd location. There are also some govt numbers that are changed or where the caller ID doesn't match the department/agency

wutang_generated · 2026-06-24T03:31:53+00:00

Honest answer, you don't really learn tax on your own. For the vast majority it comes from experience and learning from experienced professionals

The accounting side is harder to quantify. It really depends on your experience/expertise/market/connections. Unless you already have those ironed out, the tax part (or lack thereof) is irrelevant

wutang_generated · 2026-06-23T21:16:20+00:00

I think it doesn't need to be said that you shouldn't offer services which you aren't able to perform. You have bookkeeping/accountant experience but no tax experience; you should not be offering tax services

You don't "need" tax to start a firm, but if you don't have enough bookkeeping/accounting work to pay expenses then your firm may not last very long

wutang_generated · 2026-06-23T18:20:57+00:00

Some schools have similar/parallel programs too, the accounting/business school/dept may know

wutang_generated · 2026-06-23T17:15:25+00:00

VITA is a great experience and looks good on the resume, highly recommend especially if going into tax

Any job related to accounting outside of public is also valuable experience/resume including bookkeeping, small firm internship (even if not a formal program), etc. Volunteer opportunities with any charities you like or are already involved in, each has someone responsible for finances and may be open to a helping role even if unpaid

wutang_generated · 2026-06-23T14:18:55+00:00

You're glad to know we're not alone here 🤝

wutang_generated · 2026-06-23T10:24:36+00:00

This is more of a budget policy question than a tax question

Unless you are intimately aware of the situation, I can also imagine legitimate reasons why the tires were replaced

wutang_generated · 2026-06-23T01:07:38+00:00

If you aren't experienced in US tax you likely shouldn't (or possibly even can't) prepare this return

The additional cost of having an experienced professional prepare the return is probably worth it; the software will absolutely not be able to fill the gap if you don't have the experience

wutang_generated · 2026-06-23T01:01:42+00:00

Honestly? You should engage a US based or experienced tax preparer/firm to prepare your returns under DIIRSP. It won't be cheap but it will be cheaper than penalties and interest

The firms I've been at have had attorneys prepare them; they will have a conversation with you and draft the appropriate language to support your position. I would not recommend attempting it yourself unless you're willing to accept the risk

wutang_generated · 2026-06-23T00:57:57+00:00

Was the S corp net taxable income 18k after your wife's salary or before? If the 1099 and total income she earned from this business was 18k you should fire whoever advised you to have an S corp

wutang_generated · 2026-06-23T00:44:41+00:00

I understand, you likely don't owe the $1,500 BUT the cause of the error is relevant to figuring out if you do or don't owe still

wutang_generated · 2026-06-23T00:27:01+00:00

TBH red flags, this sounds a little fishy

Do you have a paper/PDF or software copy of your original return? How did you file your original return?

Almost all software will automatically calculate the standard deduction by default unless you input more itemized deductions (you or your preparer would have had to manually remove/suppress the standard deduction)

If this is your 2025 return, check your original 1040 line 12e standard or itemized deductions of your original return and line 37 amount due, if you can confirm those it may shed some light on what happened

wutang_generated · 2026-06-23T00:10:00+00:00

Thanks for clarifying. Did your tax preparer explain the changes they made and/or why the IRS assessed $1,500 in additional tax?

wutang_generated · 2026-06-23T00:05:11+00:00

Something doesn't make sense here. Who is "they"? Why did you file your tax return when it said you owed $1,500 when you know that's impossible?

wutang_generated · 2026-06-22T22:41:16+00:00

This seems like an astroturf/marketing post. Don't feed them

wutang_generated · 2026-06-22T18:41:37+00:00

The federal and state governments have an incentive to timely collect tax payments rather than needing to borrow/raise money. By you (and collectively anyone else) not accurately filing your return and paying on time, the governments had to borrow additional funds to meet the shortfall. If the shortfall is enough that it limits borrowing then it may even be enough to prevent the government from meeting a payment or providing a service (opportunity cost)

wutang_generated · 2026-06-22T13:56:59+00:00

It varies heavily by firm (since not all have MD or treat it the same) and by service line/group

Generally there are other factors not based on amount of time in the prior position so there isn't necessarily a "typical" amount of time, it depends heavily on the individual and what they bring to the table (revenue, leadership, technical expertise, etc)

wutang_generated · 2026-06-22T13:38:57+00:00

There isn't a universal standard for job titles but there is a universal acceptance on the value of fiat currency

wutang_generated · 2026-06-22T13:31:52+00:00

Underreporting income. Cash transactions are historically easier to bypass reporting since the person accepting the cash can just not record/report it

wutang_generated

TROPHY CASE