What is the name of your state? NJ
Hopefully I'll make a long story short.
I haven't filed my 05 state, 06 Federal and State, and 07 state and federal yet.
Early 05 I started a business and haven't had any income since. In May 06, I sold my house and had substantial gains from it (almost $200K). I owned the house for 6.5 years prior to selling. Since May 06, I moved back in with my parents and have been paying rental ($250/month). Between interest income and a part time job which my wife has there is about $12K of income/year for 05, 06 and 07.
In 07 there was some income from my wife getting disability payments due to a car accident...do I need to include disability payments as income on my return?
Should I claim that I pay rent to my parents or does that just create problems if they don't report it as income?
Since I owned the home for 6.5 years do I have a tax liability on the gains from selling the house? Or, is it exempt?
Is it critical that I file the returns for the years I've missed? Or, can I file for 07 and move forward from this point?
Finally, is this all just a big mess and I need an accountant to make all my filings current? How much would a scenario like this cost...i've never used an accountant before.
Thanks for your help. Hope I'm being clear.
Hopefully I'll make a long story short.
I haven't filed my 05 state, 06 Federal and State, and 07 state and federal yet.
Early 05 I started a business and haven't had any income since. In May 06, I sold my house and had substantial gains from it (almost $200K). I owned the house for 6.5 years prior to selling. Since May 06, I moved back in with my parents and have been paying rental ($250/month). Between interest income and a part time job which my wife has there is about $12K of income/year for 05, 06 and 07.
In 07 there was some income from my wife getting disability payments due to a car accident...do I need to include disability payments as income on my return?
Should I claim that I pay rent to my parents or does that just create problems if they don't report it as income?
Since I owned the home for 6.5 years do I have a tax liability on the gains from selling the house? Or, is it exempt?
Is it critical that I file the returns for the years I've missed? Or, can I file for 07 and move forward from this point?
Finally, is this all just a big mess and I need an accountant to make all my filings current? How much would a scenario like this cost...i've never used an accountant before.
Thanks for your help. Hope I'm being clear.