Taxes

Colorado homeowners, no longer protected by the Gallagher Amendment, face unprecedented and unsettling increases in their property taxes next year as the run-up in home prices during the pandemic works its way into the state’s tax base. “We know we will have this issue, but it is like a train wreck about to happen where you have no brakes and you can’t do anything to stop it,” said Glen Weinberg, owner of Fairview Commercial Lending in Evergreen and Steamboat Springs, who has blogged about the slow-motion crisis. County…

Tax-free crypto countries have prospects for exposure to the new world of digital currencies with an improved economy Several countries all over the world are levying high-income taxes on cryptocurrency investors and their associated businesses, which could potentially hamper their earnings as the value of cryptocurrencies soars. These levies may be applied as either an income tax or a crypto tax on capital gains. Fortunately, there are still a few nations that allow investors to be tax-free or have a minimal amount of…

Facebook parent company Meta faces a potential tax bill of around 870 million euros ($925 million) in Italy after prosecutors launched an investigation into the company, two sources with direct knowledge of the matter said on Wednesday. The investigation was opened by Milan magistrates at the request of the European Public Prosecutor's Office (EPPO), which asked the Guardia di Finanza police and the Italian Revenue Agency to checks if there is a case for user registrations to be subject to tax. "We strongly disagree with…

Despite the cooling market, many homeowners made money selling their property in 2022 — and part of that windfall may be taxable.Home sellers made a $112,000 profit on the typical sale in 2022, a 21% increase from 2021, and a 78% jump from two years ago, according to ATTOM, a nationwide property database. While most sellers fall under the thresholds for capital gains taxes, high-dollar home sales or long-term ownership can trigger an unexpected bill, experts say.More from Smart Tax Planning:Here's a look at more…

Senate Finance Committee Chairman Ron Wyden, D-Ore., questions IRS Commissioner Charles Rettig at a Senate Finance Committee hearing.Tom Williams | Pool | ReutersPresident Joe Biden's nominee to lead the IRS answered questions during a Senate Finance Committee hearing this week, highlighting key issues from lawmakers on both sides of the aisle.Daniel Werfel, a former budget official and private sector leader, fielded questions Wednesday about the agency's funding, enforcement, transparency and other priorities.  "I think…

vitapix | E+ | Getty ImagesPlanning to sell some investments this year? It's less likely to affect your 2023 tax bill, experts say.Here's why: The IRS made dozens of inflation adjustments for 2023, including the long-term capital gains brackets, applying to investments held for more than one year.This means you can have more taxable income before reaching the 15% or 20% brackets for investment earnings.More from Smart Tax Planning:Here's a look at more tax-planning news."It's going to be pretty significant," said Tommy…

Bill Oxford | E+ | Getty ImagesThe tax season is underway, and the IRS has issued nearly 8 million refunds worth about $15.7 billion as of Feb. 3, the agency reported.The average refund amount was $1,963, down from last year's payment of $2,201 at the same point in the filing season. Of course, the average may change as the IRS processes millions more returns before the April 18 deadline.While the agency warned refunds may be "somewhat lower" this season, experts say it's still too early to know for sure.More from Smart…

dmphoto | E+ | Getty ImagesTax season is underway, and there's been increased scrutiny of the IRS as it starts deploying part of the nearly $80 billion in funding approved for the agency by Congress in August. While Treasury Secretary Janet Yellen has said goals include boosting customer service and improving technology, critics have warned the new funding will spark an uptick in IRS audits. "People are scared to death of the IRS," said Karla Dennis, an enrolled agent and founder of Karla Dennis and Associates. "They…

Jeffrey Coolidge | Photodisc | Getty ImagesBlack Americans are roughly three to five times more likely to face an IRS audit than other taxpayers, according to a new study.While there isn't evidence of explicit discrimination from the IRS or its revenue agents, the findings show the disparity stems from a faulty software algorithm used by the agency to pick who gets audited.Based on microdata on roughly 148 million tax returns and 780,000 audits, the study was conducted by economists at Stanford University, the University…

The Union Budget 2023 is here and FM Nirmala Sitharaman announced some changes that will impact the technology sector. Notably, mobile phones could become cheaper. Union Budget 2023: FM Nirmala Sitharaman presented the Budget today in Parliament where she also announced changes that will impact the technology sector. In recent years, technology has played a crucial role in India's economic growth. While the Make in India initiative and cybersecurity have been getting all the attention, the Finance Minister Nirmala…