I frequently receive email similar to this:

REREAD YOUR INFO. DAMN IT! WAS HELPFUL.KEPT ME FROM MAKING YET ANOTHER DUMB MISTAKE. WHEN MY AZ CORP MAKES ME RICH, I’M GONNA OFFER YOU

A FREE  FISHING TRIP.

I usually reply with the following warning, which I hope everyone will heed.

I’m glad that you found the info useful.

However, I hope you realize that it is dangerous to use any such info, from my website or any other source, without the additional counsel of a tax pro in order to ensure that you come up with a strategy that works best for your particular circumstances.

Good luck.

Kerry Kerstetter

 

Q:

Subject: capital gains on personal residence

just finished reading your post, and wanted to ask this:  How does the IRS define the purchase of the one’s personal residence – is that the day that the title is transferred?  What if you leased with the option to buy for some time before exercising the option, does that time count?

Thank you for your informative blog!

A:

To qualify as owning it, your name must be on the title for the property.  Leasing it does not qualify, whether you have a purchase option or not.

Kerry Kerstetter

Arkansas Corporate Franchise taxes due earlier this year – May 2 instead of June1, as it had been for several years.  The minimum tax has been tripled, from $50 to $150, as our rulers in Little Rock squeeze every dollar they can out of small businesses in this state.