Tax Tips To Consider As Filing Day Approaches

People who sell their home may be able to exclude the gain from their income. Here are seven things every homeowner should know if they sold, or plan to sell their house, plus tips on what you should do if you can't pay your tax bill, are expecting a refund, if you bought a house in 2008, or planning to buy one in 2009.

1. Amount of exclusion.  When you have gain from the sale of your home, you may be able to exclude up to $250,000 of the gain from your income. For most taxpayers filing a joint return, the exclusion amount is $500,000.

2. Ownership test.  To claim the exclusion you must have owned the home for at least two years during the five year period ending on the date of the sale.

3. Use test.  You also must have lived in the house and used it as your main home for at least two years during the five year period ending on the date of the sale.

4. When not to report.  If you are able to exclude all of the gain from the sale of your home, you do not need to report the sale on your federal income tax return.

5. Reporting taxable gain.  If you have gain which cannot be excluded, it is taxable and must be reported on your tax return using Schedule D.

6. Deducting a loss.  You cannot deduct a loss from the sale of your home.

7. Rules for multiple homes.  If you have more than one home, you may only exclude gain from the sale of your main home and must pay tax on the gain resulting from the sale of any other home. Your main home is generally the one you live in most of the time.

For more information see IRS Publication 523, Selling Your Home, available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Can’t pay full tax bill now?

The IRS realizes many people are in financial distress and there may be a lot of people who can’t pay their full tax bill by April 15. There are options, such as payment plans. The worst thing to do is to not file a tax return because you can’t pay your tax bill. That’ll just compound your problems. The penalty fee is far worse for late filing than for late payment. If you can’t make full payment by April 15, you need to contact the IRS and they can work out extensions or payment plans.

Expecting a refund?

It's actually better not to get one! Money Editor Stacy Johnson explains…

Bought a new home?

If you bought a house in 2008, you can take credit of $7,500, but you’re required to repay that credit over 15 years. It’s like an interest-free loan. Under the stimulus package, buyers who purchase a home in 2009 have the option of taking a credit for up to $8,000 on their 2008 or 2009 return. That is an actual credit, you don’t have to pay it back. The good news is you can get some money for the home.

Three Reasons to Try Temporary Work

If you’re the kind of person who enjoys a flexible schedule and a varied work environment, temping may be the path for you. Temp work allows you to hone the skills you have — and learn new ones — while earning a wage that’s often comparable or higher to what you’d make as a full-time employee. And if permanent work is what you’re after, there’s always the possibility of landing a full-time job through a temporary assignment.

However, flexibility does have its price. Most temp workers don’t get the perks that come with full-time employment, like health insurance, paid vacations and a pension plan.

 Temping, or finding only temporary work, is a viable option for both professionals and non-professionals. Employers like it too since they only have to pay workers when they need them.

Spring Lawn Care Tips

As the grass greens up, many homeowners are anxious to get out and start working on their lawns. A little patience and care at this point will reward the gardener with a fine lawn later.

For instance, the sight of new grass growing often inspires the homeowner to run out and spread fertilizer to help the young blades along. This is actually the opposite of recommended practices for fescue and bluegrass lawns. The proper time to feed grass is in the fall, when the roots that will sustain the plants through the following summer are actively growing. Even if the fall feeding was missed, any spring feeding should be limited to a light feeding (1/2 pound of actual nitrogen, i.e., 5 pounds of 10-10-10, per 1000 sq. ft.) after the initial flush of growth has subsided, probably sometime in May or early June.

Lime, on the other hand, should be applied in early spring, if soil tests show that it is necessary. Most lawn grasses grow best at soil pH's of 6.0 to 7.0, so have your soil's pH analyzed every two to three years to be sure you are staying in that range. The soil test results will include recommendations on how much lime to apply.

When your lawn requires its first cutting, be sure not to cut too short. Mow to about two inches during the spring, then raise the cutting height another half inch when summer arrives. Mow frequently so that no more than one third of the grass blade is removed at one time.

Apply preemergent herbicides between the middle of March and the middle of April to control crabgrass. Crabgrass generally emerges about the time of dogwood bloom, and the preemergent herbicides used to control it will not affect crabgrass that is already up and growing.

Spraying for dandelions is most effective in fall, but spring spraying of a broadleaf weed killer will control many of them. Be sure to spray when the weeds are actively growing rather than during drought conditions. When spraying any herbicide, use a different sprayer from the one which you use to apply insecticides or fungicides. Mark it "HERBICIDE" so it will not inadvertently be used for other purposes, which may result in herbicide residues damaging valuable plants.

After taking care of these few necessary lawn chores for early spring, you can relax and save your energy for summer mowing.