Financial Questions and Answers
Q: With job competition keen, I’m considering hiring someone I can train. Are there tax breaks for that?
A: Your business receives a tax deduction for educational assistance and training expenses given to employees. In addition, your business may receive the Work Opportunity Tax Credit if it hires someone who was long-term unemployed, receiving food stamps, is an ex-felon, a disabled veteran or other classifications of potential employees. The Work Opportunity Tax Credit is first figured on Form 5884 after requesting certification with IRS Form 8850, and then becomes a part of the general business credit claimed on Form 3800, General Business Credit. Talk to your tax professional to learn more.
Q: I am planning to sell my home and will move into a rental property. Will I owe taxes on my profit?
A: The answer depends on how much and for how long. A single person may exclude up to $250,000 of profit ($500,000 for couples filing jointly) on the sale of a primary residence. To qualify, you must have owned and lived in the home for at least two of the preceding five years. You can use this tax exclusion as many times as you want, but not within two years of each other.
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