Real Estate Agents and Taxes : How to File an Extension
April 15th is next Monday and it's coming sooner than we all know it. If you are like a lot of real estate agents out there, there is a good chance that you may have to file an extension to get all of your books in order. 2012 and 2013 are looking better for agents and home sales, but not like things were 8 years ago. If you need the extra time to get your paperwork and deductions in gear, Brendon Pack
of 1800Accountant has put together some great tips on filing an extension.
The Internal Revenue Service allows individual and corporate taxpayers to file an extension, to accommodate a host of situations ranging from incomplete tax documentation and organization changes to litigation, fiscal year change and unexpected operating events. If you own a small business and want to file an extension, seek the guidance of a professional, such as an enrolled agent, fiscal lawyer or certified public accountant. You also may personally handle the extension paperwork if you are familiar with the subtleties of tax filing and fiscal regulations.
Rules and Deadlines
Rules and deadlines for extension filing depend on the type of business you own. If you possess a sole proprietor or single-member limited liability company, and your tax return is usually due on April 15, the IRS will grant you a 6-month extension length. You must file your personal return with the extension, and use Form 4868
. If your business is a partnership or a multiple-member limited liability company, and the company's filing deadline is April 15, the IRS will grant you a five-month extension length. You are not required to file your personal return with the extension paperwork, but you must use Form 7004
. You use the same form to file an extension if your company is a C corporation or an S Corporation, in which case the IRS will grant a 6-month extension length, regardless of the filing deadline.
Estimate Your Taxes
Before filing an extension, determine whether your business will be getting a refund or should brace for a potential tax liability. If the company owes taxes, it must pay them by the filing deadline, say, April 15. Talk to your company's tax preparer for more information. A Small Business Accountant In Chester
can help with your company's tax. If the tax bill is substantial and your company cannot afford to pay at once, contact the IRS to determine available payment options. You can estimate your company's fiscal bill either by talking to a tax preparer, using a free tax app, or using free tax preparation software, such as TurboTax or TaxAct.
Complete the Extension Application
Use Form 4868 to complete an extension application for a sole proprietorship or single-member LLC. If your business is a partnership, C corporation, S corporation or multiple-member LLC. You must determine what tax filing form is applicable to your corporation type. The IRS instructs that partnership taxes be reported on Form 1065, S corporation taxes be reported on Form 1120-S, and C corporation fiscal information be reported on Form 1120. For complex corporate structures and tax matters, talk to a fiscal expert, such as a tax preparer. The expert will explain to you the nuances of Form 7004.
Check for Errors
Check and double-check your company's tax form before filing an extension. Potential mistakes include math errors (both subtraction and addition), estimated tax remittances indicated on the wrong line, missing or inaccurate employer ID numbers or social security numbers, and incorrect tax indicated based on filing status and taxable income. Also, don't forget to sign the form before filing, because a missing signature may delay the receipt and processing of your tax form. The IRS may reject your extension application if it has an error or a modification in corporate information that the agency didn't know of.
File Online or by Mail
You can file your company's extension application online or by regular mail. If you choose the second option, contact the IRS to see the list of mailing addresses. That information is also available in Form 7004 Instructions, which you can access on the IRS website. If electronic filing is your preferred option, you can use programs as diverse as TurboTax Easy Extension, TaxACT Free Online Extension, and FileLater Online Tax Extension. More about this from the Washington Post
Hope this helps get through next week and beyond with Uncle Sam.
Phil Butler is a former engineer, contractor, and telecommunications professional who is editor of several influential online media outlets including part owner of Pamil Visions with wife Mihaela. Phil began his digital ramblings via several of the world’s most noted tech blogs, at the advent of blogging as a form of journalistic license. Phil is currently top interviewer, and journalist at Realty Biz News.
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THANKS FOR THESE TIPS. I'VE READ A FEW TIPS FROM BRENDON PACK AND THEY ALL SEEM TO BE ABOVE BOARD AND HONEST. TIME IS TICKING FOR THIS YEAR!