Author: Dream Dose
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Preparing an asset sale tax return may be a complex procedure, and even a simple error can generate penalties, audit, or undetected deductions. As a private individual disposing of a costly asset or as a company involved in asset disposition, knowledge about common pitfalls could ensure compliance as well as optimum tax efficiency. Following are the most common mistakes taxpayers commit and how to keep them at bay. 1. Misreporting Capital Gains and Losses Misreporting of capital gains and losses is among the biggest errors in asset sale tax returns. Taxpayers fail to distinguish between short-term and long-term capital gains,…
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