Tax Preparation

Tax Consultation

Tax Preparation

Tax Preparation

And that is where tax planning & consultation comes in.

Income from Stocks, Bonds & Security Instruments

Income from these types of investments (Schedule B, Interest & Ordinary Dividends) involve income received from your investments. These incomes must be properly reported to the Internal Revenue Service on your tax return. Each income item has reporting requirements particular to the specific income type.

Income from Sale of Stocks, Real Estate and Other Assets

Income from these types of investments (Schedule D, Capital Gains & Losses) involve profits & losses from the sale of your investments, known as Capital Gains & Losses. The tax assessments are divided into 2 classes, Short Term (assets held less than a year) and Long Term (assets held for 1 year and 1 day). These incomes must be properly reported to the Internal Revenue Service on your tax return. Each income item has reporting requirements particular to the specific income source and the length of time you have owned the investment. An experienced tax professional can perform the required calculations to comply with the regulations and explain the calculations to you.

Income from Retirement Accounts, Pensions and Annuities

The IRS requires that these income sources be reported on your tax return. Each of these income sources have specific requirements. One of the most important requirements is meeting the yearly Required Minimum Distribution for Traditional IRA’s and Roth IRA’s. The penalties for missing these required distributions are harsh, up to 50% of the distribution amount that was not taken when required. A knowledgeable tax practitioner can assist you in meeting these requirements.

Income from Real Estate Investments

Income from investments in real estate properties (Schedule E) is a great way to earn income for persons who are willing and able to take on the tasks and risks associated with these types of investments. However, the tax code for real estate investments is somewhat complicated. The one expense that is most misunderstood is depreciation, which is a major expense of your real estate investment. You must properly deduct your depreciation (the costs of the part(s) of your property that deteriorates over time) and you must also keep track of the year-to-year expense of that depreciation until the real estate is sold or disposed of. You will have other expenses, taxes and repairs. There are IRS regulations that determine how those expenses can be deducted as an expense against rental income. And if you manage the properties yourself, you may be able to write off your losses up to $25,000, thus reducing your tax liability when you file your yearly tax return.

Income from Small Business Ownerships

A few of us own small businesses in which we are still active in the operations of those businesses. We may be the hands-on manager or we may have turned over the day-to-day operations to family members and manage the business through oversight. The business may be setup as an LLC, Sole Proprietor, Partnership or a Subchapter S Corporation (Forms Schedule C and Schedule E). Reporting the income and expenses to the IRS on tax return is dependent on how the business is structured. Furthermore, there may be a reporting requirement to out of state revenue agencies, which in most states is the Department of Revenue. Profitable businesses may be eligible for a significant tax credit, the Qualified Business Income Deduction or QBI. These tax situations are complicated and a tax professional can be a vital partner in assisting you in navigating through the various rules and regulations imposed on small business.

Special Situations

If you are not legally married, but live in a long-term relationship as a married couple, you are in a unique tax situation. You each have the advantages of single persons for tax purposes while enjoying the social benefits of a married couple. Each of you brings something special into your relationship and each of you has their own tax situations to consider. An experienced tax professional can show you where to maximize your tax benefits for each of you as both a couple as well as a single person. This is especially true if you own your residence together, one or both of you have children, one of you is retired while the other is still working.