Hawkins Ash CPAs https://hawkinsashcpas.com Part of your business. Part of your life. Fri, 21 Feb 2020 16:46:22 +0000 en-US hourly 1 https://wordpress.org/?v=5.3.2 Randy Juedes to Lead Executive Committee at Hawkins Ash CPAs https://hawkinsashcpas.com/randy-juedes-to-lead-executive-committee-at-hawkins-ash-cpas/ Thu, 20 Feb 2020 21:47:20 +0000 https://hawkinsashcpas.com/?p=8892 Randy Juedes will serve as the Chairperson for the Executive Committee of Hawkins Ash CPAs. In this role on the firm’s governing body, his duties include coordinating and leading the activities and meetings of the executive committee, coordinating and overseeing partner meetings, and providing oversight of the firm’s managing partner. “One of my primary goals […]

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Randy JuedesRandy Juedes will serve as the Chairperson for the Executive Committee of Hawkins Ash CPAs. In this role on the firm’s governing body, his duties include coordinating and leading the activities and meetings of the executive committee, coordinating and overseeing partner meetings, and providing oversight of the firm’s managing partner.

“One of my primary goals for this upcoming year is to work with our partner group and key staff to develop our new strategic plan that will be implemented in 2021,” said Randy Juedes, CPA, Partner and Executive Committee Chairperson.

Juedes succeeds Randall Miller, CPA, as Executive Committee Chairperson. Miller served as Chairperson for 16 years. During this time he played a key role in leading the firm to more than double in size as a result of organic growth and multiple successful acquisitions, which added two new markets to the Hawkins Ash CPAs footprint in Wisconsin and Minnesota.

Miller, who has worked for Hawkins Ash CPAs for 37 years, is confident in Juedes’ ability to lead the firm forward and oversee the firm’s strategic planning initiatives. “I served as Randy’s guide as he completed the three-year Emerging Leaders Academy (ELA) program. Randy embraced the leadership and management teachings, which has made him a high-level leader in our firm,” said Miller.

Juedes joined Hawkins Ash CPAs in 2001. In addition to this new role, he serves as partner-in-charge of the Medford, Wis., office of Hawkins Ash CPAs. His experience includes audits of commercial entities and employee benefit plans as well as individual and corporate taxation. Juedes is a member of the American Institute of Certified Public Accountants and Wisconsin Institute of Certified Public Accountants. Juedes holds multiple leadership roles in the community; he serves as Chairperson for the Aspirus Medford Foundation, Director for the Memorial Members Association and Parish Council Chairperson for Our Lady of Perpetual Help Church. He is a member of the Medford Kiwanis and a graduate of UW-Eau Claire.

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Accounting for the Near and the Long Term in a Family Budget https://hawkinsashcpas.com/accounting-for-the-near-and-the-long-term-in-a-family-budget/ Tue, 18 Feb 2020 18:27:46 +0000 https://hawkinsashcpas.com/?p=8765 A wise person once said, “Simplicity is the key to a family budget.” (He or she may or may not have been an accountant.) However, it also needs to be comprehensive enough to cover all necessary items. To find the right balance, a budget should cover two distinct facets of family members’ lives: The near […]

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A wise person once said, “Simplicity is the key to a family budget.” (He or she may or may not have been an accountant.) However, it also needs to be comprehensive enough to cover all necessary items. To find the right balance, a budget should cover two distinct facets of family members’ lives: The near term and the long term.

In the near term, the budget should encompass the day-to-day items that affect every family. First, the home: This is often the most valuable possession in a personal budget. And a budget shouldn’t include only mortgage payments, but also expenses such as utilities, maintenance and supplies.

Naturally, there are other items related to daily life that need to be accounted for. These include groceries, fuel, clothing, child care, insurance and out-of-pocket medical expenses. And families need to draw clear distinctions between fixed and discretionary spending.

Along with being a practical guide to near-term family spending, the budget needs to address long-term goals. Of course, some goals are further out than others. For example, virtually everyone’s longest-term objective should be to have a comfortable retirement. So, a budget needs to incorporate plan contributions and other ways to meet this goal.

A relatively less long-term goal might be funding one or more college educations. So, again, the budget should reflect efforts to this effect. And, as a long-term but “as soon as possible” objective, the budget needs to be structured to pay off debts and maintain a strong credit rating. Our firm can help you craft a sensible budget that addresses your family’s distinctive needs. Contact us to begin the conversation.

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Own a Pass-Through Entity? Beware the Ides of March https://hawkinsashcpas.com/own-a-pass-through-entity-beware-the-ides-of-march/ Tue, 18 Feb 2020 17:56:42 +0000 https://hawkinsashcpas.com/?p=8753 “Beware the Ides of March.” Shakespeare’s words don’t apply just to Julius Caesar; they also apply to calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes. Why? The Ides of March—March 15—is the federal income tax filing deadline for these “pass-through” entities. Not-so-Ancient History Until the […]

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“Beware the Ides of March.” Shakespeare’s words don’t apply just to Julius Caesar; they also apply to calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes. Why? The Ides of March—March 15—is the federal income tax filing deadline for these “pass-through” entities.

Not-so-Ancient History

Until the 2016 tax year, the filing deadline for partnerships was the same as that for individual taxpayers: April 15 (or shortly thereafter if April 15 fell on a weekend or holiday). But the due date was changed to allow business owners to use the information contained in the pass-through entity forms to file their personal returns. For partnerships with fiscal year ends, tax returns are now due the 15th day of the third month after the close of the tax year. The same deadline applies to fiscal-year S corporations.

Avoiding a Tragedy

If you haven’t yet filed your calendar-year partnership or S corporation return, you can avoid the tragedy of a late return by filing for an extension. Under the current law, the maximum extension for calendar-year partnerships is six months (until September 15, 2020, for 2019 returns). This is up from five months under the old law. So, the extension deadline is the same — only the length of the extension has changed. The extension deadline for calendar-year S corporations also is September 15, 2020, for 2019 returns. Whether you’ll be filing a partnership or an S corporation return, you must file for the extension by March 15 if it’s a calendar-year entity.

Extending the Drama

Filing for an extension can be tax-smart if you’re missing critical documents or you face unexpected life events that prevent you from devoting enough time to your return right now.

But to avoid potential interest and penalties, you still must (with a few exceptions) pay any tax due by the unextended deadline. There probably won’t be any tax liability from the partnership or S corporation return. But, if filing for an extension for the entity return causes you to also have to file an extension for your personal return, it could cause you to owe interest and penalties in relation to your personal return.

To File or To Extend

We can help you file your tax returns on a timely basis or determine whether filing for an extension is appropriate. Contact us today.

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Tax+Business Alert: February 18, 2020 https://hawkinsashcpas.com/taxbusiness-alert-february-18-2020/ Tue, 18 Feb 2020 17:50:24 +0000 https://hawkinsashcpas.com/?p=8747 View and sign up for our latest Tax+Business Alert newsletter. Headlines in this edition include the following:   Own a Pass-Through Entity? Beware the Ides of March PODCAST: When It’s Time to Move On: Taxes and the Sale of Your Principal Residence Accounting for the Near and the Long Term in a Family Budget

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View and sign up for our latest Tax+Business Alert newsletter. Headlines in this edition include the following:

 

View Newsletter

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Client Feature and Executive Director Q&A: Opportunity Development Centers, Inc. https://hawkinsashcpas.com/client-feature-and-executive-director-qa-opportunity-development-centers-inc/ Mon, 17 Feb 2020 18:46:04 +0000 https://hawkinsashcpas.com/?p=8716 The mission of Opportunity Development Centers, Inc. (ODC), is to empower people with disabilities to achieve their work and life goals. After more than half a century, the not-for-profit agency has evolved to remain a community resource for countless individuals, employers and businesses to help make this mission a reality. When ODC was founded in […]

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ODCThe mission of Opportunity Development Centers, Inc. (ODC), is to empower people with disabilities to achieve their work and life goals. After more than half a century, the not-for-profit agency has evolved to remain a community resource for countless individuals, employers and businesses to help make this mission a reality.

When ODC was founded in 1965, employment opportunities after graduation from high school for people with disabilities were less common. At the time, ODC’s model primarily involved contacting businesses and securing contract work for participants, who were trained at ODC facilities in everything from woodworking to packaging and bulk mailing services, and even computer and electronics recycling in recent years.

While participants still engage in some contract work to this day, ODC President Pam Ross reports that the agency has transformed its services to be significantly more community-based than facility-based. In 2019 alone, ODC helped more than 900 people become employed and engaged in their local communities.

“How we do what we do has changed, but at the core we are the same.”

Pam Ross, President of ODC

Ross explains that this shift can be attributed, in part, to a number of new services offered by ODC that assist with on-the-job training and education for people with disabilities. This includes partnering with high schools and the international Project SEARCH initiative to teach soft skills in the classroom, including work and independent life readiness. Through coaching and internships at host business locations, this school-to-work transition service for young adults with disabilities helps them to prepare for and secure competitive employment. According to Ross, the goal is that when students graduate from Project SEARCH, they will be employed or ready for employment in the community. The Division of Vocational Rehabilitation of Wisconsin’s Department of Workforce Development is the funding partner that supports the Project SEARCH sites.

ODC - Milkweed Market

Milkweed Market is a home décor and custom sign business.

For Ross, witnessing participants’ growth and transformation over time—developing friendships, confidence and experience—makes ODC one of the most impactful programs she has ever seen. “How we do what we do has changed, but at the core we are the same,” said Ross.

Throughout the years, ODC has grown in both size and scope, with facility locations in Wisconsin Rapids, Marshfield and Stevens Point that serve nine counties in Central Wisconsin. Each location offers a variety of services for participants, such as employment services, employment training, day services, school transition services and mental health services.

In addition to maintaining several contract services for area businesses, ODC also recently established two of its own social enterprises: Milkweed Market, which is a home décor and custom sign business with products handcrafted by people at all levels of ability, and Ink Splash, a full-service apparel printing business. Both of these businesses operate within ODC’s Wisconsin Rapids location.

Q&A with Pam Ross

Pam Ross - ODC

Pam Ross, President of ODC

Pam Ross, president of ODC, originally joined the team in 1986 when she was hired as the first job coach for ODC’s emerging Supported Employment program. After devoting more than 33 years to the agency, read what she has to say about lessons learned throughout the years, ODC’s progress and goals for the future.

What are some things you know now that you wish you knew when you first started as a nonprofit leader?

I have always believed that having the right people on your team is essential to success as a leader and as an organization. Now that I have been in the role a long time, I would say it is absolutely the single most important thing—to have the very best people on the team, who are passionate about your organization’s mission, who work well together and are effective in getting things done.

Whether you run a “for profit” business or a not-for-profit organization, it is all about the people. I believe the quality of the organization has everything to do with the quality of leadership and people within the organization.

I would also say it is extremely important to have a great board—people with connections, diverse expertise and people who are excited about the mission of the organization. The executive director has a key role in board development and leadership to keep the board informed and engaged.

What has been your biggest source of pride as executive director?

ODCWithout a doubt, I am the most proud of the accomplishments of the people we serve. ODC’s mission is to empower people with disabilities to achieve their work and life goals, and I am always so proud of people when they experience something new, learn new skills, make progress toward a goal, make new connections in the community and get a job that interests them.

At the same time, I am so proud of our team at ODC that supports these individuals on their journeys. We have an amazing team of people who really believe in the people we are serving and put their hearts and souls into helping individuals achieve their goals.

Finally, I am proud of how well our team has done in establishing great relationships with so many people, businesses and organizations in our community. Our community supports us in so many ways, and we are ever grateful for how they help us to achieve our mission.

What are your three biggest accomplishments in your career as a not-for-profit leader?

ODC - Woodworking

Custom signs like this are handcrafted by people at all levels of ability for Milkweed Market.

It is not so much about my personal accomplishments, but the accomplishments of the organization that matter. I am proud of ODC’s progress under my leadership—I could not have accomplished anything without great people on the team. We really have incredible people working here!

I am proud of ODC’s strong reputation within the community—with the families of people we serve, our funding sources, employers, donors and the many organizations that partner with us to accomplish our mission. It is so important to have great partners!

I am also proud of the significant transformation we have made as an agency during the past several years, in creating many more opportunities for people to be involved and working in the community.

What are the dominant challenges that you see nonprofit organizations facing and what do you think would be viable solutions?

Funding is always challenging for any not-for-profit organization. For our organization, it has been important for us to diversify our funding streams and supplement the funding with donations and revenue from our social enterprises.

I also think that having an endowment fund to provide stable income on a year-to-year basis is crucial, as funding can fluctuate based on a number of factors. In order to accomplish your mission and retain good staff, money is vital, so anything an organization can do to supplement their funding is a plus.

The other challenge is governance; having an effective, engaged and strategic board requires identifying the right people, and then making sure that the board is well-trained to do its job. It is so important to provide the board governance training, and often not-for-profits may lack the time and resources to provide the training. Having free or inexpensive governance training, materials, videos, etc., would definitely be helpful to many organizations.

How do you see the organization changing in the next two years, and how do you see yourself creating that change?

ODCODC and our industry, which provides employment services for people with disabilities, has changed significantly throughout the past several years from a primarily center-based model of services to a primarily community-based model of services. We are focusing our efforts on finding opportunities for people to be connected to people and opportunities of interest to them in the community, actively engaged in the community and ultimately employed in the community. We will continue to support people wherever they are at in their personal journeys, and help them to grow and achieve their goals.

We will also continue to respond to emerging needs, and look for ways to serve additional people or ways we can provide different types of support. For example, in the past few years, ODC has added youth transition services to our offerings, to work with younger individuals (14 and older) as they prepare for life and work after high school.

In addition, we are now offering mental health services to support people in the community in reaching their goals to maintain their mental health.

There are many other opportunities to serve people in our communities, and we look forward to continuing to meet those needs.

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New Reporting Requirements for Restricted Cash https://hawkinsashcpas.com/new-reporting-requirements-for-restricted-cash/ Mon, 17 Feb 2020 18:14:31 +0000 https://hawkinsashcpas.com/?p=8712 In November 2016, the Financial Accounting Standards Board (FASB) issued Statement of Cash Flows – Restricted Cash (ASU 2016-18), to clarify how cash and cash equivalents and restricted cash and cash equivalents are presented in the statement of cash flows. Because there was no previous specific guidance there had been much diversity in how these […]

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In November 2016, the Financial Accounting Standards Board (FASB) issued Statement of Cash Flows – Restricted Cash (ASU 2016-18), to clarify how cash and cash equivalents and restricted cash and cash equivalents are presented in the statement of cash flows. Because there was no previous specific guidance there had been much diversity in how these cash items were being reported on the statement of cash flows. The standard is effective for all Organizations for fiscal years beginning after Dec. 15, 2018, which would be Dec. 31, 2019, for a calendar year Organization and fiscal year end 2020 for a fiscal year end Organization. If prior periods are presented on the statement of cash flows in the year of implementation, the prior period should be reclassified to conform to the new presentation.

The new standard will not change the current accounting for restricted cash and cash equivalents, but you will notice a change in the upcoming year in how these items are reported on the statement of cash flows and footnotes for your Organization, including:

The presentation of cash inflows and outflows related to restricted cash and cash equivalents.
Additional disclosures.

The new standard will require your Organization to include restricted cash or cash equivalents with the beginning and ending cash and cash equivalents on your statement of cash flows. The restricted cash and cash equivalents inflows and outflows will be presented separately as operating, investing or financing based on the nature of the activity whenever the total of an Organization’s cash and cash equivalents (restricted and unrestricted) is affected. The additional disclosures will require your Organization to describe the nature of the restrictions on restricted cash and cash equivalents in narrative form. Furthermore, if your Organization is reporting cash items in more than one line on the statement of financial position you will be required to include a reconciliation of each line item to the total cash and cash equivalents presented on the statement of cash flows.

There is some flexibility in reporting the above items on the face of the statement of cash flows or in the notes to the financial statements. We will work with you on determining the best approach for the reporting of cash items in order to comply with the new standard.

If you have any questions in regards to how ASU 2016-18 will impact your Organization, please contact your Hawkins Ash CPAs representative.

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Nonprofit Connection Newsletter: February 2020 https://hawkinsashcpas.com/nonprofit-connection-newsletter-february-2020/ Mon, 17 Feb 2020 16:32:48 +0000 https://hawkinsashcpas.com/?p=8703 In our February Nonprofit Connection newsletter, several of our CPAs provide updates and coverage of the following topics:   Nonprofit Tax Tidbits: Form 990 Schedule M New Reporting Requirements for Restricted Cash Lease Standard: Topic 842 Delayed Client Feature and Executive Director Q&A: Opportunity Development Centers, Inc. New W-4 for Use in 2020

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In our February Nonprofit Connection newsletter, several of our CPAs provide updates and coverage of the following topics:

 

View Newsletter

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Nonprofit Tax Tidbits: Form 990 Schedule M https://hawkinsashcpas.com/nonprofit-tax-tidbits-form-990-schedule-m/ Thu, 13 Feb 2020 09:00:40 +0000 https://hawkinsashcpas.com/?p=8480 In continuing with our series on the schedules of the IRS Form 990, this quarter we will focus on Schedule M: Noncash Contributions. The purpose of this schedule is to provide information about the contributions the Organization has received during the year that consist of property other than money. This includes stocks, bonds, works of art, […]

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In continuing with our series on the schedules of the IRS Form 990, this quarter we will focus on Schedule M: Noncash Contributions.

The purpose of this schedule is to provide information about the contributions the Organization has received during the year that consist of property other than money. This includes stocks, bonds, works of art, vehicles, real estate, etc. Noncash contributions not included are donated services or donated use of property.

Schedule M is required to be completed if the Organization has received noncash contributions, in the aggregate, greater than $25,000. Noncash items are reported on Schedule M even if they are received and sold immediately.

The schedule lists different types of categories to describe the donated property. Information as to the number of contributions of that type of property, the value of the contribution, as well as the method used to determine the property’s value, is detailed.

The bottom section of the form has a series of yes and no questions that give the reader further information about the contributions, such as:

  • If the contributions are required to be held by the Organization for at least three years.
  • Whether the Organization has a gift acceptance policy that requires a review of nonstandard contributions.
  • If the Organization hires or uses a third party to solicit or process the sale of noncash contributions.
  • If the Organization did not report a value for one of the donated items listed on the schedule.

As with most schedules that support IRS Form 990, there is a section that allows the preparer to explain any portion of the form that requires further explanation or detail.

A question on Form 990 Part IV Checklist of Required Schedules asks the preparer if they have received noncash property greater than $25,000. If the answer is yes, Schedule M is required to be completed and attached and submitted as a supporting schedule of the 990. The sum of all the property reported on Schedule M should correspond to the amount recorded on Federal Form 990 Part VIII Statement of Revenue line 1f.

If you receive noncash property during the year, take the time to keep a list of the type of property received, the date and value of the property. So you have one less thing to gather at year-end, keep a folder to hold all supporting documentation regarding the noncash contribution.

If you have any questions regarding Schedule M or any of the other schedules, please contact your Hawkins Ash CPAs representative.

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New Certified Public Accountant and Enrolled Agent at Hawkins Ash CPAs https://hawkinsashcpas.com/new-certified-public-accountant-and-enrolled-agent-at-hawkins-ash-cpas/ Mon, 10 Feb 2020 15:41:39 +0000 https://hawkinsashcpas.com/?p=8643 Hawkins Ash CPAs has a new Certified Public Accountant (CPA) and a new Enrolled Agent (EA) in the firm’s Marshfield, Wis., office. Rachel Steinke, an associate at Hawkins Ash CPAs, recently achieved her CPA designation from the State of Wisconsin Department of Regulations & Licensing. To qualify, she had to pass a rigorous, four-part written […]

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Hawkins Ash CPAs has a new Certified Public Accountant (CPA) and a new Enrolled Agent (EA) in the firm’s Marshfield, Wis., office.

Rachel Steinke, an associate at Hawkins Ash CPAs, recently achieved her CPA designation from the State of Wisconsin Department of Regulations & Licensing. To qualify, she had to pass a rigorous, four-part written exam, have a four-year college degree and demonstrate at least a year of experience in public or private accounting.

Jill Wrensch, a tax manager at Hawkins Ash CPAs, is now an EA. This status is the highest credential awarded by the Internal Revenue Service (IRS). To qualify, she had to pass a three-part comprehensive IRS test covering individual and business tax returns. Those who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.


Rachel Steinke, CPA

Rachel Steinke

Rachel Steinke, CPA

Rachel Steinke joined Hawkins Ash CPAs in 2019 as an associate. She specializes in 1095 filing and municipal audits, as well as working with partnerships and S Corporations.

Steinke also is experienced in payroll, cost accounting to assist in developing project pricing, GL account reconciliations, insurance claim submissions and addressing customer billing inquiries. In the community she is active in the Marshfield Sunrise Rotary.

“I enjoy the wide variety of tasks and industries we work with,” she said. “It creates new learning opportunities and challenges every day, which helps me to continuously grow and develop knowledge and skills.”

More About Rachel Steinke »


Jill Wrensch, EA

Jill Wrensch

Jill Wrensch, EA

Jill Wrensch has been working in public accounting since 1995, when she began her career with the Kenneth E. Noble, CPA, SC practice, which merged with Hawkins Ash CPAs in 2009.

In her role as a tax manager, Wrensch works with individual, business, and estate and trust tax returns. She also provides general accounting services and tax advisory for clients.

“I’m a lifelong learner who loves helping my clients, the firm and my community,” she said.

Wrensch is actively involved in her community as a clerk for the Town of Rock – Wood County, a member of the Wisconsin Municipal Clerks Association, and a volunteer and committee member for Cub Scout Pack 392/BSA Troop 392.

More About Jill Wrensch »

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When It’s Time to Move On: Taxes and the Sale of Your Principal Residence https://hawkinsashcpas.com/when-its-time-to-move-on-taxes-and-the-sale-of-your-principal-residence/ Thu, 06 Feb 2020 16:05:49 +0000 https://hawkinsashcpas.com/?p=8615 There comes a point in time or age or you want to move along that you have to sell your home, whether it’s because you’re downsizing, upsizing or retiring. With mortgage rates falling, more and more people are looking to purchase a new home. This is great, but unless you plan on continuing to use […]

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There comes a point in time or age or you want to move along that you have to sell your home, whether it’s because you’re downsizing, upsizing or retiring.

With mortgage rates falling, more and more people are looking to purchase a new home. This is great, but unless you plan on continuing to use your old home, it needs to be sold. Today I want to talk about how taxes work when it comes to the sale of your principal residence.

If I remember right, you can exclude some of the “gain.” Correct?

Correct. A lot of people think that the old rules are still in place. The old rules said that if you sold your home, you had to use those proceeds from the sale of that home and buy another home within two years or you’d have to pay a gain. That’s changed now. Now you actually get an exemption as long as you “check all the boxes.”

The IRS says if you’re single, you can exclude up to $250,000 worth of gain on the sale of your home, and if you’re married, $500,000—as long as you’ve owned your home for two of the last five years and occupied your home for two of the last five years.

If you do not meet those requirements, can you get a partial exclusion, like a discount?

In general, it’s all or nothing—you either qualify for it or not—but they did list some exceptions. Those exceptions are work-related items like you moved and you have to sell your house because you’re moving because of work, health-related items or unforeseen events, such as your home was destroyed by fire or tornado, you had a death in the family, divorce, having twins and now the house is too small for you or you lost your job … those kind of things fit into that exception.

Is it really that simple?

It’s really not. There are a lot of facts and circumstances that can determine whether you’re eligible to take that exclusion.

What do we need to be aware of if we’re going to sell the home—and the gains and all the tax liability?

For most people it’s going to be pretty straightforward. You’re going to have lived in it for two of the last five years and occupied it. But there are certain situations where you might not.

For example, you could have received the home as a gift from your parents and you have not been meeting those requirements of owning and living in the house for two of the last five years. There are a lot of estate planning reasons to do it, but there are also things that you should be aware of from when it’s actually sold, so you really have to be careful about that.

A second example is if you may have used your home as part of a business. There may be some reasons why the exclusion doesn’t work fully in that case, either. In that situation, there are things you can do to work around that, so you should talk to your accountant when it comes to that point.

Is there still no tax if I took depreciation in a prior year?

It’s a little bit different than that. You will still need to recapture any depreciation taken. If you take, for example, $5,000 of depreciation on your business because of your home, you have to essentially pay that back when you sell your home.

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