"I sold my house, do I have to buy another house in order to avoid paying taxes on the money I made?"

With the new exception limits for gains on the sale of a main home, most people no longer have to purchase another home in order to avoid paying taxes on the gain. Any gain up to $250,000 for single persons or $500,000 for married filing joint is not included in income.

"Why must I keep records?"

You need to keep good records in order to prepare your tax return. These records must support the income, expenses, and credits you report. Generally, these are the same records you use to monitor your business, or track your personal finances. Your records must be available for inspection by the IRS. If the IRS examines any of your tax returns, you may be asked to explain the items reported.

"What if I am audited?"

If you receive a notice in the mail from the IRS, it is important to respond promptly. It is wise to consult a tax professional right away because often the IRS request can be taken care of by mail. I am available to assist with this process whether or not I prepared your tax return.