Celebrating Women in History Month

March is Women’s History Month, a time to celebrate the achievements and contributions of women throughout history. At Loeffler Financial Group, we’re proud to honor the women who have shaped the field of accounting, paving the way for future generations. This year, we highlight some trailblazers whose impact continues to resonate today.

1. Maria Gaetana Agnesi (1718-1799)

Maria Gaetana Agnesi was an Italian mathematician and philosopher who wrote the first book discussing both differential and integral calculus. Her work, “Analytical Institutions for the Use of Italian Youth,” was a groundbreaking achievement and contributed significantly to the understanding of calculus. Agnesi’s dedication to education and mathematics laid a foundation for women in STEM fields.

2. Mildred Dresselhaus (1930-2017)

Known as the “Queen of Carbon Science,” Mildred Dresselhaus was an American physicist and electrical engineer. Her research focused on the electronic properties of materials, particularly carbon, and she made pioneering contributions to the field of nanotechnology. Dresselhaus was the first female Institute Professor at the Massachusetts Institute of Technology (MIT) and served as a role model for women pursuing careers in science and engineering.

3. Mary Harris Thompson (1832-1923)

Mary Harris Thompson was an American pioneer in accounting and taxation. She founded one of the first professional accounting firms in the United States and played a crucial role in shaping early accounting practices. Thompson’s advocacy for rigorous standards and professionalism in accounting laid the groundwork for the modern accounting profession.

Loeffler Financial Group: Empowering Women in Finance

While Loeffler Financial Group is owned by men, we take pride in the fact that our company is largely d

riven by strong, intelligent women. From leadership roles to client management and financial planning, women at Loeffler Financial Group are integral to our success. They bring diverse perspectives, innovative ideas, and a commitment to excellence that defines our approach to client service.

As we celebrate Women’s History Month, we recognize and celebrate the contributions of women in accounting and finance. Their resilience, intelligence and dedication continue to inspire us at Loeffler Financial Group and beyond. Join us in honoring these remarkable women and reflecting on their impact on our industry and society.

At Loeffler Financial Group, we believe in empowering women in finance and celebrating their achievements every day.

The accounting world is transforming rapidly, driven by emerging technologies and shifts in tax regulations. For businesses and accounting professionals alike, staying ahead of these trends is essential to streamline operations, ensure compliance, and remain competitive. Here are five key accounting trends to watch in 2025 that will shape the future of the industry.

1. Artificial Intelligence and Machine Learning in Accounting

Artificial intelligence (AI) and machine learning are revolutionizing the accounting sector. In 2025, AI will be even more integral, helping businesses automate time-consuming tasks such as data entry, invoice processing, and reconciliation. AI-driven tools can learn from previous accounting entries, predict patterns, and flag inconsistencies, minimizing human error and streamlining workflows.

For businesses, leveraging AI in accounting translates to faster and more accurate processing. AI tools also enable real-time analysis, helping finance teams make data-informed decisions without waiting for end-of-quarter reporting. As a result, AI can free up accountants to focus on higher-value activities, such as strategy and financial planning, rather than spending time on repetitive tasks.

2. The Rise of Digital Transformation and Cloud-Based Accounting

The shift to cloud-based accounting continues to gain momentum, as more companies seek flexible, scalable solutions. In 2025, cloud-based platforms will be the preferred choice for most businesses, as they enable real-time access to financial data from anywhere with an internet connection. This is particularly valuable for remote teams and companies that need to collaborate across locations.

Digital transformation in accounting is about more than just storing data in the cloud. It’s a complete overhaul of traditional processes, including automated workflows, integration of financial software with other business applications, and the use of data analytics to gain deeper insights into business performance. Embracing these digital solutions enhances efficiency and provides real-time access to financial data, which is vital for timely decision-making.

3. Increased Focus on Data Analytics and Real-Time Reporting

With advances in data analytics and reporting tools, accounting is evolving from a traditionally backward-looking discipline to a proactive, strategic function. In 2025, expect data analytics to play a crucial role in driving business decisions. Companies will use analytics to assess profitability, forecast revenue, identify inefficiencies, and even predict financial risks.

Real-time reporting will become more common, as stakeholders demand timely insights to respond to changing market conditions. Accounting teams will increasingly rely on data dashboards that offer instant updates, enabling management to make agile and well-informed decisions. This shift to real-time data aligns with a broader trend towards more dynamic, responsive business strategies that can adapt quickly to new challenges and opportunities.

4. Preparing for Updated Tax Laws and Compliance Standards

Tax regulations and compliance standards are in a constant state of flux, and staying up-to-date is more critical than ever. In 2025, we expect to see significant updates in tax laws related to digital transactions, international trade, and sustainability initiatives, which could have a substantial impact on businesses of all sizes. This will require accountants and tax professionals to stay informed and adaptable.

In response, businesses will likely adopt specialized tax software that incorporates real-time updates to tax codes and compliance requirements. Automated tax solutions are becoming increasingly sophisticated, making it easier to navigate changing regulations and reducing the risk of costly errors. Companies that invest in proactive tax planning and compliance management will be better positioned to handle the complexities of the evolving tax landscape.

5. Emphasis on ESG (Environmental, Social, and Governance) Reporting

As consumers and investors place more emphasis on corporate responsibility, Environmental, Social, and Governance (ESG) reporting is gaining traction across industries. Accounting departments are taking on a more significant role in ESG reporting, helping organizations track and report on sustainability efforts, social responsibility, and ethical governance practices.

In 2025, ESG reporting will become a standard practice for businesses as regulatory bodies start to mandate certain ESG disclosures. Accountants will be responsible for ensuring the accuracy of these reports, as investors and stakeholders demand transparency in corporate practices. Companies that prioritize ESG metrics in their accounting processes will not only align with evolving regulatory requirements but also improve their brand reputation and investor appeal.

Technology making waves

The accounting profession is undergoing a significant transformation, driven by advancements in technology, evolving regulatory requirements, and a growing emphasis on sustainability. By staying ahead of these trends, businesses and accountants can leverage technology to enhance efficiency, navigate complex tax landscapes, and build trust through transparent reporting.

At Loeffler Financial Group, we’re dedicated to helping our clients stay ahead of the curve. Our team leverages the latest tools and insights to provide proactive, customized solutions that meet today’s accounting and compliance needs. As we move into 2025, embracing these trends will position your business for success in an increasingly dynamic financial landscape.

As we approach the holiday season, it’s easy to let financial planning slide to the bottom of your to-do list. However, November is actually the ideal time to assess your finances and take steps that can positively impact your tax situation for the year ahead. By planning early, you can enjoy a stress-free holiday season while setting yourself up for a smooth tax filing process next year. Here are some essential tips to prepare your finances before the year ends.

1. Review Your Income and Expenses

Take a close look at your income and expenses to get a clear picture of where you stand financially. Reviewing these figures now will help you identify any necessary adjustments before the close of the year. For instance, if your income has increased significantly, you may want to consider strategies for reducing your taxable income to avoid a higher tax bill. Or, if you’re a business owner, evaluating your expenses could reveal opportunities to make year-end purchases that can be deducted in this tax year.

2. Maximize Your Tax-Advantaged Contributions

If you haven’t yet maxed out contributions to retirement accounts such as a 401(k) or IRA, now is the time to do so. Contributions to tax-advantaged accounts reduce your taxable income, offering potential savings come tax season. For 2024, you can contribute up to $22,500 to a 401(k) or $6,500 to an IRA (with an additional $1,000 catch-up contribution if you’re over 50).

Don’t forget other tax-advantaged accounts like a Health Savings Account (HSA) if you’re eligible. HSAs not only reduce taxable income but can also serve as a long-term savings vehicle for medical expenses, with unused funds carrying over year-to-year.

3. Make Charitable Contributions

The holiday season is a wonderful time to give back, and it can also reduce your tax liability. Charitable donations made before December 31 can be deducted if you itemize on your tax return. Be sure to keep documentation of all donations, as the IRS may require proof. Non-cash contributions, such as donated clothing or household items, can also qualify, but make sure to keep a detailed list and consider obtaining an appraisal for high-value items.

4. Consider Timing Business Expenses

If you’re a small business owner or self-employed, consider timing certain expenses to optimize your tax deductions. Making necessary purchases, such as new equipment or supplies, before year-end can reduce your taxable income. Additionally, prepaying some expenses (such as rent or insurance) could allow you to maximize deductions for this year, especially if you use the cash basis accounting method.

5. Assess Capital Gains and Losses

If you have investments, now is the time to review your portfolio and evaluate any unrealized capital gains or losses. By strategically selling investments, you can offset capital gains with losses, a strategy known as “tax-loss harvesting.” This can help reduce your tax liability, especially if you’ve had a successful investment year. Just be mindful of the “wash sale rule,” which disallows a deduction for a loss if you repurchase the same investment within 30 days.

6. Use Any Remaining FSA Funds

If you have a Flexible Spending Account (FSA) for healthcare expenses, remember that many FSAs have a “use it or lose it” policy, meaning unused funds do not roll over into the next year. Check your plan’s specifics to see if there’s a grace period or carryover option, but if not, plan to use up any remaining funds by scheduling medical appointments, filling prescriptions, or purchasing eligible items like eyeglasses or medical supplies.

7. Plan for Estimated Tax Payments

If you’re self-employed or have other income sources that aren’t subject to withholding, make sure you’re on track with your quarterly estimated tax payments. The fourth-quarter payment is due in January, but planning now will help ensure you avoid a big surprise tax bill — and any associated penalties — when you file your return. Calculating your total income, deductions, and expenses now will give you a good estimate of what you owe.

8. Organize Your Tax Documents

Tax season can be a lot less stressful when you have everything in order. Take a few minutes to organize your receipts, statements, and other financial records, which will make filing much easier and more efficient. Consider using digital tools or apps to securely store these documents and avoid misplacing anything important during the busy holiday season.

Take a Proactive Approach

Taking a proactive approach to tax planning before year-end is one of the best ways to minimize tax liability and maximize financial opportunities. A little planning now will help you avoid the holiday rush and enjoy peace of mind going into the new year. At Loeffler Financial Group, we’re here to support your year-end financial planning needs. Contact us today to learn more about how we can help you make the most of this tax season.

Happy Holidays — and happy planning!

At Loeffler Financial Group, we often see businesses making some common bookkeeping mistakes that can have serious long-term consequences. The good news? They’re all fixable! Here are the top errors and how you can turn them around:

1. Not Keeping Personal and Business Expenses Separate

The Mistake: Mixing personal and business expenses is one of the most common errors. It can make your records messy, leading to confusion at tax time and making it harder to track business performance.

How to Fix It:

  • Open a separate business bank account and credit card.
  • Use software or apps to track expenses and make sure they are categorized correctly.
  • Regularly review your statements to ensure expenses are clearly defined.

2. Neglecting to Reconcile Bank Accounts

The Mistake: Failing to reconcile your bank accounts regularly can lead to discrepancies between your books and actual bank balances. This makes it harder to spot fraud, errors, or overlooked transactions.

How to Fix It:

  • Reconcile your bank accounts at least monthly. Compare your statements with your records to ensure every transaction is accounted for.
  • Use accounting software that allows you to automate this process, making reconciliation faster and more accurate.

3. Forgetting to Track Receipts

The Mistake: Misplacing receipts or forgetting to track small purchases is a common issue. This not only affects tax deductions but can also lead to a messy audit trail.

How to Fix It:

  • Use digital receipt tracking apps or accounting software with receipt capture capabilities.
  • Make it a habit to scan and store receipts as soon as you make a purchase.
  • Label and categorize receipts in real-time to save yourself headaches later on.

4. Misclassifying Expenses

The Mistake: Incorrectly classifying expenses is easy to do, but it can distort your financial reports and affect your taxes. For example, mixing operating expenses with capital expenses can lead to incorrect deductions.

How to Fix It:

  • Familiarize yourself with common expense categories or work with a professional bookkeeper to set up a consistent system.
  • Use accounting software with predefined categories to minimize errors.
  • Review your expense categories regularly to ensure transactions are properly classified.

5. Delaying Bookkeeping Until Tax Time

The Mistake: Waiting until the end of the year or tax season to update your books can create a stressful and overwhelming situation. It also increases the chance of missing important deductions or details.

How to Fix It:

  • Set a regular schedule (weekly or monthly) to review and update your books.
  • Consider hiring a professional bookkeeper or using automated software to keep your financials updated in real-time.
  • Review your books regularly to identify any issues early on.

6. Failing to Track Accounts Payable and Receivable

The Mistake: If you’re not keeping track of what you owe (accounts payable) and what you’re owed (accounts receivable), you could be missing payments or neglecting to chase down outstanding invoices.

How to Fix It:

  • Set up a clear system to track both payables and receivables.
  • Use accounting software that alerts you to overdue payments and outstanding invoices.
  • Schedule regular reviews of accounts payable and receivable reports to stay on top of your cash flow.

7. Ignoring Payroll Tax Responsibilities

The Mistake: Failing to calculate and pay payroll taxes correctly can lead to penalties and compliance issues. This is especially common for small business owners managing payroll manually.

How to Fix It:

  • Use payroll software or a third-party payroll service to automate the process.
  • Stay updated on tax laws and deadlines to ensure you remain compliant.
  • If payroll becomes too complex, consider outsourcing it to a professional service like Loeffler Financial Group.

8. Not Using Financial Reports for Decision-Making

The Mistake: Many businesses fail to use the wealth of information in financial reports, such as income statements and balance sheets, to make informed business decisions.

How to Fix It:

  • Run financial reports monthly to monitor your business’s health.
  • Review key metrics like profit margins, cash flow, and expense trends to identify areas for improvement.
  • Work with a financial advisor to interpret the data and implement strategies for growth.

The Solution? Proactive Bookkeeping!

By recognizing and correcting these mistakes, you’re not only avoiding future headaches but also setting your business up for success. If you’re feeling overwhelmed or unsure about fixing these issues on your own, we’re here to help. At Loeffler Financial Group, we specialize in cleaning up books and setting up efficient systems to keep you organized and compliant year-round.

Ready to fix your bookkeeping? Contact Loeffler Financial Group today at 717-393-7366, and let’s get your books back on track!

Are you guilty of pushing your bookkeeping to the back burner with excuses like “I’ll do it next year,” “I know my money,” or “I don’t have time”? It’s time to recognize that these delays could be costing you more than you realize.

📊 Why Accurate Bookkeeping Matters

The truth is, that accurate bookkeeping forms the bedrock of your business’s financial health. Without it, you risk:

  • Missed Tax Savings: Proper records ensure you claim all deductions and credits you’re entitled to.
  • Inaccurate Cash Flow: Clear financial records help you understand your cash position and make informed decisions.
  • Potential Penalties: Incorrect filings can lead to penalties and unnecessary headaches.

But it’s not just about your business; it impacts your family’s financial future too. Imagine the peace of mind knowing that your current needs and future goals are supported by a solid financial foundation.

⏰ Take Action Now

Don’t procrastinate any longer. Taking control of your books means setting up your business—and your loved ones—for:

  • Growth: Clear financial insights pave the way for strategic decisions and sustainable growth.
  • Better Decisions: Access to accurate data empowers you to make informed choices.
  • Financial Clarity: Know where your business stands and plan confidently for the future.

Next year’s success starts with the right steps today. Let’s get your bookkeeping in order. Contact Loeffler Financial Group now to take the first crucial step towards financial stability and prosperity.

Remember, your business deserves the best financial footing possible. Let’s make it happen together.

5 Ways a Real Estate Bookkeeper Can Revolutionize Your Accounting & Boost Your Bottom Line

In the realm of business, bookkeeping stands as the cornerstone for maintaining accurate financial records. When it comes to real estate, this practice takes on a whole new significance, encompassing assets, liabilities, and overall capital management. The benefits are manifold, offering streamlined tax tracking, enhanced cash flow, performance analysis, and heightened security.

Real estate bookkeeping not only facilitates easier tax tracking but also empowers businesses to analyze their performance, track profits and losses, and ensure financial security. To delve deeper into the transformative potential of a real estate bookkeeper, let’s explore five key ways they can elevate your accounting practices and bolster your financial prosperity:

  1. Stay Informed and Ahead: With a dedicated real estate bookkeeper on board, you gain real-time insights into your financial landscape. This proactive approach allows you to identify trends, anticipate challenges, and seize growth opportunities.
  2. Safeguard Against Losses and Fraud: Vigilant monitoring of financial records is paramount in safeguarding your business against losses and fraudulent activities. A skilled bookkeeper conducts comprehensive audits, ensuring transparency and accountability in all financial dealings.
  3. Navigate Tax Season with Confidence: Real estate bookkeepers not only track financial transactions but also serve as invaluable allies during tax season. By maintaining meticulous records, they help you accurately assess tax liabilities, minimize risks of penalties, and optimize your tax strategy for maximum savings.
  4. Provide Accurate Financial Data: In the fast-paced world of real estate, access to accurate financial data is indispensable for making informed decisions. A proficient bookkeeper ensures that your financial records are up-to-date, reliable, and tailored to your specific business needs.
  5. Maximize Profitability and Efficiency: By harnessing the insights provided by a real estate bookkeeper, you can identify areas for optimization, streamline processes, and ultimately enhance your bottom line. With their expertise in real estate accounting, they offer strategic guidance to help you maximize profitability and achieve your business objectives.

In conclusion, the role of a real estate bookkeeper extends far beyond mere record-keeping. It catalyzes growth, offering invaluable support in navigating the complexities of real estate accounting. To harness the full potential of professional bookkeeping services tailored to the real estate industry, look no further than Loeffler Financial Group. Schedule your consultation today and embark on a journey towards financial empowerment and prosperity. Visit our website for more information: http://www.LoefflerFinancialGroup.com.

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Avoid These Small Business IRS Audit Mistakes

Businesses that are slowly emerging from the COVID-19 pandemic should now keep their eye on another looming obstacle: IRS audits. In late 2020, the IRS announced that it will increase tax audits of small businesses by 50 percent in 2021. Here are several mistakes to avoid if you do get audited by Uncle Sam.

  • Mistake: Missing income. A long history of investigating has led IRS auditors to focus on under-reported income. If you’re a business that handles cash, expect greater scrutiny from the IRS. The same is true if you generate miscellaneous income that’s reported to the IRS on 1099 forms. Be proactive by tracking and documenting all income from whatever source. Invoices, sales receipts, profit and loss statements, bank records—all can be used to substantiate income amounts.
  • Mistake: Higher than normal business losses. Some small businesses struggle in the early years before becoming profitable. If your company’s bottom line never improves, the IRS may view your enterprise as a hobby and subsequently disallow certain deductions. As a general rule, you must earn a profit in three of the past five years to be considered a legitimate business.
  • Mistake: Deductions lacking substantiation. Do you really use your home office exclusively for business? Does your company earn only $50,000 a year but claim charitable donations of $10,000? Do you write off auto expenses for your only car? The key to satisfying auditors is having clear and unequivocal documentation. They want source documents such as mileage logs that match the amount claimed on your tax return and clearly show a business purpose. If you can’t locate a specific record, look for alternative ways to support your tax return filings. In some cases, a vendor or landlord might have copies of pertinent records.
  • Mistake: No expense reports. If you use your credit card for business, create an expense report with account numbers and attach it to each statement. Then attach copies of the bills that support the charges. This is an easy place to blend in personal expenses with business expenses and auditors know it.
  • Mistake: No separate books, bank accounts or statements. Never run personal expenses through business accounts and vise versa. Have separate bank accounts and credit cards. A sure sign of asking for trouble is not keeping the business separate from personal accounts and activities.
  • Mistake: Treat the auditor as an enemy. Auditors have a job to do, and it’s in your best interest to make their task as painless as possible. Try to maintain an attitude of professional courtesy. If you’re called to their office, show up on time and dress professionally. If they come to your place of business, instruct staff to answer questions honestly and completely.

Please call Loeffler Financial Group if you either need help preparing for an upcoming IRS audit or would like to know how to audit-proof your financial records.

 

With millions of Americans working remotely for the first time this year, the Federal Trade Commission is warning people about work-from-home scams.

Our Loeffler Financial Group accountants have provided some common work-from-home offers to be careful of according to the FTC:

At-Home Medical Billing Businesses. Many medical billing business opportunities are worthless. Their promoters don’t tell the truth about earnings potential and fail to provide key information.

Envelope-Stuffing Schemes. Offers that promise quick and easy income from stuffing envelopes at home virtually never pay off.

Telemarketing Resale Scams. Selling brand-name merchandise from home can be a great way to work-at-home making some extra money. But fraudsters sometimes call to lure you into a resale proposition. They’re the ones who make the money – and they make it from you.

Work-at-Home Businesses. Many work-at-home opportunities are promoted by scam artists. If you pay in, it’s likely that you will spend more than you can earn.

How to Protect Yourself

  • Do your research. Talk to other people and read reviews about the work-from-home opportunity you are considering. Also consider checking out a company with your local consumer protection agency, your state’s Attorney General or the Better Business Bureau.
  • Request the FTC’s one-page disclosure document. Sellers of work-from-home opportunities are required by the FTC to give you a one-page disclosure document that offers key pieces of information about the opportunity. Click here to see what the document looks like.
  • Ask follow-up questions. In addition to reviewing the disclosure document, ask the sellers follow-up questions such as the following: What tasks will you have to perform? Will you be paid a salary or be on commission? What is the basis for the company’s claims about what you can earn? When will you get your first paycheck?

Reporting a Scam

If you have spent time and money on a work-at-home program and now believe it may not be legitimate, contact the company and ask for a refund. If you can’t resolve any disputes with the company, file a complaint with the FTC at ftc.gov/complaint or call 877-FTC-HELP.

Also file a complaint with your state’s Attorney General’s office or the state where the company is located.

And as always, feel free to reach out to Loeffler Financial Group with any questions you may have.  Our team of expert accountants and financial planners are always here to help assist with any questions or concerns you may have.

 

 

The importance of a CPA

Life is often viewed as a series of stages – childhood, graduation, parenthood, and retirement, to name a few. Like the points on a clock, time moves us from one stage to the next. No matter what “time” it is in your life cycle, you probably share a common worry: money. Managing money for today is one thing; making decisions to ensure adequate funds for the next stage is quite another.

The CPA commitment. As trusted advisors, CPAs across the country have made a commitment to increase financial literacy. How? By volunteering to educate the public about financial issues and the decisions that must be made at every stage of life. Americans are faced with significant financial concerns, but often have insufficient financial literacy. Bright and even highly educated people sometimes have trouble speaking the language of money, often to their economic detriment.

To combat this trend, the CPA profession has united around a cause to educate Americans, rich and poor, young and old, on how to better handle their finances. With the life cycle “clock” as a model, CPAs have taken a full, 360-degree view of the challenges Americans face. For each milestone, the profession has solid, practical advice to share. You might say CPAs are once again emphasizing the term “public” in their title.

Call on us. Which brings us to our firm, Loeffler Financial Group. We, too, have accepted the call to educate our community. Our team of experts would be pleased to speak to your organization about life’s financial challenges. We can also speak to students or provide classrooms with timely, interesting material on money and financial issues.

If you would like to find out more about the accounting profession’s drive to improve financial literacy, give us a call. Life’s financial clock is ticking. Let us help you before the alarm goes off. Call Loeffler Financial Group today at 717-393-7366!

Be aware that important tax consequences are often associated with some fairly common events involving your home. Here are some handy things to know.

Home purchase. When purchasing a home, you may pay a portion of the mortgage interest in advance. This loan origination fee, or “points,” is a percentage of the total amount borrowed.

If points are paid for a principal residence, you generally can deduct the full amount in the year paid, even if the points were paid by the seller. One caution: you must reduce your home’s tax basis (cost) by the amount of seller-paid points.

Of course, one of the greatest tax benefits of home ownership kicks in during the early years of the mortgage, when most of your payments go toward tax-deductible interest.

IRA withdrawals. The tax law allows penalty-free IRA withdrawals, up to a lifetime limit of $10,000 for the purchase of a first home for you or members of your family. Withdrawals from Roth IRAs for qualifying first-home expenses can be both penalty- and tax-free after the Roth is five years old.

Refinancing. What happens if you refinance? If you pay points, the general rule requires that you prorate deduction over the life of the loan. But if some of the refinance proceeds go toward home improvements, you may be able to take a current deduction for the portion of the points related to those improvements.

Improvements. If you take out a loan to make substantial improvements to your principal residence, and the loan is secured by that property, the interest is generally deductible. Remodeling often increases the value of your property. Remodeling costs also increase the property’s basis, potentially reducing capital gains tax if a future sale is partially or fully taxable.

Other home improvement costs generally are not deductible, but if you upgrade your home for medical reasons – say, to add a wheelchair ramp or stair lift – you may be able to deduct a portion of the cost as a medical expense.

Home office. The home office deduction can be another tax break of home ownership. If you use part of your home regularly and exclusively as a principal place of business, you may be able to deduct costs associated with that part.

Home sale. When you sell a home that you have owned and used as your principal residence for at least two of the five years before the sale, you can generally exclude from taxation up to $250,000 of profit if you’re single and up to $500,000 if you’re married filing jointly. Profits in excess of those amounts are subject to regular capital gains rates and rules.

The definition of “principal residence” includes not only the conventional single family house, but also such homes as house trailers, mobile homes, houseboats, condominiums, cooperative apartments, and duplexes.

Selling at a loss. Unfortunately, if you sell your home for less than you paid for it, you may not take a tax deduction for your loss.

Taxes often come into play for homeowners, and it’s important to be aware of potential benefits and pitfalls.

Contact Loeffler Financial Group today to learn more about your personal tax planning as a homeowner, 717-393-7366.