{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Real Estate Is Taxing","title":"#11: 10 Common Tax Myths Debunked ","html":"","width":"100%","height":180,"duration":1390,"description":"Join me as we debunk some of the most common myths & misconceptions around taxes.1. Myth: Tax Return and Tax Refund are InterchangeableThese two terms are often confused, but they are not the same thing. A tax return is the form you fill out and submit each year, like the 1040 form for most people. A tax refund is money you get back if you overpaid your taxes. Many people mistakenly say they're waiting on their tax return when they mean their refund. 2. Myth: You Need a License to Prepare Tax ReturnsYou don't actually need a license to prepare tax returns. While there are professional credentials like the Enrolled Agent (EA) or Certified Public Accountant (CPA), they are not required. All you need is a Preparer Tax Identification Number (PTIN) from the IRS to file tax returns electronically. Check your tax professional's credentials, as many practitioners are uncredentialed. 3. Myth: Living in a Home for Two Years Makes It’s Sale Tax-FreeMany believe that simply living in a home for two out of the last five years allows you to sell it tax-free. However, the IRS has rules regarding \"non-qualified uses\" for periods when the property was not your primary residence. Even if you lived in it for two years, gains related to earlier non-qualified use periods will be taxable. 4. Myth: LLCs Provide Tax SavingsAn LLC is a legal entity and does not provide tax benefits by itself. If you set up an LLC and are the sole owner, it is disregarded for federal tax purposes. The taxes you pay and deductions you claim remain the same whether or not you have an LLC. Its primary purpose is legal protection, not tax savings. 5. Myth: You Don’t Need To Issue W-2 When Employing Your KidsIf you employ your children in your business, you still need to file W-2s and comply with all employer filing requirements. Just because their income may be non-taxable doesn't absolve you of this responsibility. Issuing W-2s also allows them to qualify for benefits like funding a Roth IRA. 6. Myth: Gifts...","thumbnail_url":"https://img.transistorcdn.com/7p4vFIM7-jHizm--e7xacjLelS5_7Kw6wB_KCTCk4nw/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS85NGRk/Y2QzMzEwMTczM2Mz/MTFiNzJkOTdmODA2/NmE3MC5wbmc.webp","thumbnail_width":300,"thumbnail_height":300}