What should I provide for my corporate or partnership tax return?
If QuickBooks is used, provide the following:
• QuickBooks backup file via email, secure portal, or on flash drive/cd
• password for the file, if applicable, or remove password
• 12/31 Bank Statements
If Accounting Program other than QuickBooks is used, provide the following:
• Profit & Loss statement for the entire year 01/01/18 to 12/31/18
• Balance Sheet at 12/31/18
• General Ledger detail for 01/01/18 to 12/31/18 (export to Excel if more than 20 pages)
• 12/31 Bank Statements
If no Accounting Program is used, provide the following:
• Total amount of revenue received for the year
• A list of annual expenses by type (e.g., supplies, telephone, rent, etc.)
• A description (year, make, model) of any automobiles driven for business purposes
• Total annual all-purpose miles and the annual number of business purpose miles driven for each auto above
• A list (including date, description and cost) of any new assets added in the recent year (e.g., computer,
furniture, equipment, etc.)
• A list of any liabilities at 12/31/18 (e.g., business line of credit, business credit card, promissory notes, loans
payable etc.). Provide statements and amortization schedules if available.
• 12/31 Bank Statements
What should I bring for my individual tax return drop off or appointment?
We need to see all official tax documents (W-2’s, 1099’s, mortgage interest statements, etc). We will scan them and return the originals to you. We need you to provide schedules or complete the organizer for any items that are not supported by tax documents (e.g., medical expenses, charitable contributions, reimbursed employee expenses, business mileage, etc). One of the most commonly missed items is automobile registration. If you have paid property taxes for any property that is not reported on a mortgage interest statement, you can get the amount of taxes paid from the County Treasurer’s website. If you are a new client, we need to see your prior year tax return including any supporting schedules and worksheets.
What do I do if I
receive a notice from the IRS about my taxes?
Don't panic! the first thing to do is carefully read the
notice - to determine why it was sent, what the IRS is
requesting, and what they want you to do. It may be nothing
of importance; it may even be a notice in your favor. After
reading it you should bring it to our attention.
How do I find out about my refund?
To look up the status of your
federal or state refund, you will need your social security
number, filing status, and exact amount you're expecting
back. Here is the link to look up your Federal Refund.
How long do I keep my records and tax
returns?
You should keep your records and tax returns for at least 3
years from the date the return was filed or the date the
return was required to be filed, whichever is later. It is
recommended that you keep these records longer if possible.
Can I deduct expenses for a business run out of my
home?
If you use a portion of your home for business purposes, you
may be able to take a home office deduction whether you are
self-employed or an employee. Expenses you may be able to
deduct for business use of your home may include the business
portion of real estate taxes, mortgage interest, rent,
utilities, insurance, depreciation, painting, and repairs.
You can claim this deduction only if you use a part of your home regularly and exclusively:
Generally, the amount you can deduct depends on the percentage of your home that you used for business. Your deduction will be limited if your gross income from your business is less than your total business expenses.
What is the difference between a C and an S
corporation?
A C Corporation and an S Corporation are exactly the same in
respect to liability protection. The difference is in how you
are taxed. A C Corporation has what is referred to as a
double taxation. First the corporation is taxed, and secondly
the dividends are taxed on the shareholders' tax returns.
An S Corporation is not taxed at the corporate level, only at
the shareholder level. Most small businesses are eligible to
file as S corporations. But the appropriate election must be
made.
What are the consequences of early withdrawals from
my retirement plans?
If you withdraw money from a 401(k) or an IRA before age 59
1/2, the distribution is taxable and there is a 10% penalty
on the taxable amount. The main exceptions that let you
withdraw money early without penalty are as follows:
What do I need to keep for my charitable
contributions?
First, is your contribution cash or non-cash?
Remember all contributions must be made to qualified charitable organizations.
If I donate my vehicle to charity, how much can I deduct on my tax return?
In the past there were a lot of charities asking you to donate your car, and there were a lot overinflated appraisals of the fair market value for these vehicles. But recently the IRS has gotten stricter on the way you determine the value of your car. Now you must claim the actual amount the charity received at an auction to sell the car, and the charity should give you timely acknowledgment to claim the deduction. If the vehicle is actually used by the charity instead of sold at auction, then you may claim the vehicle's fair market value.
What are the differences between a Roth and a
conventional IRA?
A traditional IRA lets you deduct contributions in the year
you make them, and the distributions are included as income
on your return when you withdraw from the IRA after reaching
age 59 1/2. A Roth IRA does not let you deduct the
contributions, but you also do not report the distributions
as income, no matter how much the Roth account has
appreciated. With a Roth, you can exclude the income earned
in the account from being taxed.