What's New in Taxes This Year? Part 2
If you sold your main home in 1998 and all four of the following apply, you do not have to report the sale on your tax return.
- No part of the home was used for business or rental purposes.
- You (or your spouse if filing a joint return) owned and lived in the home as your main home for at least 2 years within the 5-year period ending on the date of sale.
- You (and your spouse if filing a joint return) have not sold or exchanged another main home after May 6, 1997.
- The selling price of the home is not over $250,000 ($500,000 if married and filing a joint return).
If all four of the conditions do not apply, or for further details, see Publication 523 on the IRS homepage.
Self-Employed Health Insurance Deduction
If you are self-employed, you may be able to deduct up to 45% of your health insurance.
Standard Mileage Rates
The rate for business use of a vehicle has increased to 32.5 cents a mile. Starting this year, you can use the business mileage rate even if you lease your vehicle. For charitable contributions, the rate has increased to 14 cents a mile.
Earned Income Credit (EIC)
You may be able to take this credit if you earned less than $30,095 (less than $10,030 if you do not have any qualifying children).