Automatic Filing Extension for Some Taxpayers

The tax-filing deadline for most people in 2017 is April 18. Although anyone can file for an extension, the Internal Revenue Service grants certain taxpayers in special situations an automatic extension without the taxpayer having to request it.

This article provides an overview of those who receive an automatic extension for filing there federal income tax return.

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Avoiding Common Tax-Filing Mistakes

Every year, millions of people wait until the last few days ahead of the tax-filing deadline (which is April 18 this year) to file their tax return. Although they can file for an extension to get more time, many often rush to complete their returns.

People who rush to complete their tax returns are prone to make more errors. From simple failures to complete all required information to oversights that result in an overpayment of taxes, following are common tax-filing mistakes you should make sure to avoid.

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Tax Exclusions under Wrongful Incarceration Exclusion, Part 2

When a person is wrongfully incarcerated, it is common for them to receive financial compensation in the form of civil damages, restitution, or other monetary awards. As a result of the Protecting Americans from Tax Hikes Act of 2015, the money a person in compensation for being wrongfully incarcerated is not included in their income for tax purposes.

The following article is part 2 in a series of frequently asked questions about the Wrongful Incarceration Exclusion. Answers to other frequently asked questions can be found at Tax Exclusions under Wrongful Incarceration Exclusion, Part 1.

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Tax Exclusions under Wrongful Incarceration Exclusion, Part 1

When a person is wrongfully incarcerated, it is common for them to receive financial compensation in the form of civil damages, restitution, or other monetary awards. As a result of the Protecting Americans from Tax Hikes Act of 2015, the money a person in compensation for being wrongfully incarcerated is not included in their income for tax purposes.

The following article answers frequently asked questions about the Wrongful Incarceration Exclusion.

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Tax Guide for Farmers – Depletion

The Tax Code provides a special section applicable to farmers or those conducting a farming business. One part of that section pertains to the use of depletion.

Following is an overview of depletion.

What is Depletion?

Depletion is the use of natural resources through the activities of cutting, drilling, mining, or quarrying. Through the use of depletion, the owner of the natural resource can determine the amount of the resource’s value that has been used and the amount that remains.

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Tax Guide for Farmers – Section 179 Expense Deduction, Part 2

In the year the property is placed into service, farmers can choose to recover some or all the cost of certain property up to a defined limit. This election is known as a section 179 expense deduction. The section 179 expense deduction is taken instead of depreciating the asset over its useful life.

Following is an overview of how much you can deduct for property under section 179 expense. Section 179 Expense Deduction, Part 1 covered what property qualifies for this expense deduction.

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Tax Guide for Farmers – Section 179 Expense Deduction, Part 1

For certain property, farmers can choose to recover some or all the cost of the asset up to a certain limit in the year the property is placed into service. This election is known as a section 179 expense deduction. The section 179 expense deduction is taken instead of depreciating the asset over its useful life.

Following is an overview of the property that does and does not qualify for section 179 expense deduction.

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