Each year, taxpayers are eligible to receive tax breaks from the Internal Revenue Service for a number of reasons, ranging from home energy efficiency to charitable contributions. However, Americans should also keep the lesser-known credits in mind during tax preparation.
One overlooked tax benefit is the master's exemption, which allows homeowners who rent out their primary or vacation property for 14 or fewer days each year to collect the income tax-free, reports the Wall Street Journal.
"The property doesn't have to be a first home, but the exemption can be taken only once a year," Monmouth University CPA Douglas Stives told the newspaper.
The gift tax is another exemption that allows one individual to present another with $13,000 in cash or property on a tax-free basis each year, according to the IRS. The IRS also eases the tax burden of travelers by deeming their frequent-flier miles nontaxable, says the newspaper.
Many taxpayers should keep these tax breaks in mind during filing season and make sure to include them during preparation. Americans can view a list of exemptions and credits on the IRS Web site or consult their tax preparer regarding exemptions for which they may be eligible.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.