Tax News from John T. Vetscher, CPA & Thomas R. Vetscher, CPA

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October 2007

Issue: 4

Extended Individual Income Tax Returns Due October 15th

That's right, if you still haven't filed your 2006 Individual Income Tax Return, then you must have your return filed by October 15th. If you still need to file, then please contact us immediately so we can make arrangements to get your return filed by the deadline and avoid penalties and interest.

Enjoy this months newsletter!

How Declining Home Prices Can Have Tax Implications

The bubble has burst in many residential real estate markets. You might have borrowed heavily to buy in at the top of the market. Or perhaps you took out a home equity loan while prices were increasing. In either case, you could wind up with mortgage debt in excess of the current value of your home. That's bad enough. But if you have to sell, you could face income taxes too.

Tax Scams - The Last Thing You Need

Life is complex enough without con artists trying to separate you from your hard earned dollars. It can be very costly if you become a victim of a scam that trades on the image or the mission of the IRS. Everyone should be vigilant in protecting personal, financial and tax information.

The IRS has these tips to avoid falling prey to con artists.

Deducting Travel Expenses

The brochure for the industry trade show looks awfully appealing. It's being held in a sun-drenched resort in the middle of winter. Sure, it's expensive, but you decide to attend because it's tax deductible.

Caution: Follow all the rules and keep proper records. IRS Auditors are suspicious of business conventions that look like vacations. Here are some answers to help you secure valuable deductions and stay out of trouble with the IRS.

In This Issue

How Declining Home Prices Can Have Tax Implications

Tax Scams - The Last Thing You Need

Deducting Travel Expenses

Selling Your Home

Upcoming Tax Deadlines

Selling Your Home

During summer months many people sell their home and move to a new location. Many of those individuals will make a profit on the sale and still will not have to pay a single dime of additional income tax to the IRS.

Generally, you have made a profit if the selling price of your home is greater than the price you paid to purchase the home. That profit, considered a capital gain, is subject to income tax. However, under certain circumstances the law allows you to exclude all or part of that gain from your income - that is, you may not have to pay tax on the profit.

Upcoming Tax Deadlines

October 15th - Extended individual income tax returns are due

October 15th - September payroll deposits are due for monthly depositors

October 31st - Quarterly payroll returns are due.

Full 2007 Tax Calendar

Please let us know if there is anything we can do for you!!

Thomas R. Vetscher, CPA
John T. Vetscher, CPA

651-690-2250