Freedom Tax Services

Hey, are you thinking of selling your house in the US? If so, you might want to know how taxes work on that. Basically, if you sell your house for more than what you paid for it, you might have to pay a capital gains tax on the profit. But don't worry, there's a way to avoid that. If you lived in the house for at least two years out of the last five years, you can exclude up to $250,000 of the gain from your income (or $500,000 if you're married and file jointly). That means you don't have to pay any tax on that amount. Pretty cool, huh? Of course, there are some exceptions and rules to follow, so you should check out the IRS website or talk to a us for more details.

If you own a rental property, you need to pay tax on the income you earn from it. The amount of tax you pay depends on your total income, your expenses, and your tax rate. Here are some tips to help you manage your tax for rental property:

- Keep track of your income and expenses. You can deduct expenses like mortgage interest, repairs, maintenance, insurance, and property taxes from your rental income.
- Report your rental income and expenses on Schedule E of Form 1040. You may also need to file other forms depending on your situation, such as Form 4562 for depreciation or Form 8582 for passive activity losses.
- Pay estimated taxes quarterly if you expect to owe more than $1,000 in tax for the year. You can use Form 1040-ES to calculate and pay your estimated taxes.
- Consult us if you have questions or need help with your tax for rental property.

You could have missed these deductions!

Due date for filing individual income taxes depends on whether you are a calendar year filer (which is most common) or a fiscal year filer:

Calendar Year Filers:
File your taxes by April 15, 2024

Fiscal Year Filers:
File your taxes on the fourth month after your fiscal year ends, specifically on day 15 of that month.
If day 15 falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day1.

Remember, if you need more time to file, you can request an automatic 6-month extension by submitting Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return by the original due date. However, keep in mind that an extension of time to file is not an extension of time to pay, so it’s essential to pay any owed taxes by your original due date to avoid penalties.