February 2020 Client Profile
Miriam owns a bakery and her business recently received a tax audit letter from the IRS. How far back will the Internal Revenue Service want to examine her tax returns? What will she need to do to resolve her tax situation? The IRS should spell everything out for Miriam in the letter, but she should […]
Tax Numbers to Know
Throughout these news articles posted on our site, well share numbers you need to know for tax year 2019 and offer a sampling of whats ahead for 2020. STANDARD DEDUCTION The Tax Cuts and Jobs Act that became law in 2017, increased the standard deduction significantly. If you take the standard deduction, you can reduce […]
Real Estate & QBI
The IRS issued a final ruling explaining how to qualify for a real estate income safe harbor to receive the Qualified Business Income (QBI) deduction. You will need to make this safe harbor determination annually. QUALIFICATIONS To qualify for a safe harbor for a real estate rental income deduction under section 199A, taxpayers must meet […]
Q and A
QUESTION: Im getting serious-sounding calls from someone who claims to represent the IRS, insisting my social security number is compromised. Should I trust this? ANSWER: No, no and no! The IRS will typically send you a letter, and usually only after they receive a suspicious tax return filed with your social security number or after […]
Tax Credits or Deductions
During this tax season, it can pay to understand the two types of tax breaks the IRS offers. The first includes tax deductions, which reduce your taxable income before determining your tax bill. The second is a tax credit, which reduces any taxes you owe. Both can help reduce your 2019 tax bill, whether you […]
January 2020 Client Profile
Ray recently received a letter from the IRS, saying that he underpaid his 2017 taxes by a few thousand dollars, which he wants to dispute. What are his next steps? Can his tax professional help him resolve this dispute with the IRS? For starters, Ray shouldnt panic. Instead, he should consult a tax professional to […]
Get Ready To File Your Taxes
The beginning of another year means its time to get ready for the annual task of filing your tax returns. Whether you file as an individual, a business or both, you can get a head start by working with a tax professional to find every tax break to which youre entitled. GETTING READY If youre […]
Resolve To Become More Financially Secure
Many people make resolutions to coincide with the advent of the New Year, including becoming more financially secure. If you want to improve your financial outlook, now is a good time to take steps to achieve this goal. TAP THE EXPERTS You go to a doctor for medical care and a mechanic to fix your […]
How to Take Tax-Friendly RMDs
Before you retire, consider planning for your required minimum distributions (RMDs). This can be more complicated than you imagine if you have significant retirement assets in qualified plans, such as 401(k) accounts and IRAs, but you can achieve a tax-friendly result with a little planning. KNOW THE RULES Generally, you must begin taking RMDs by […]
Keep Them or Dump Them?
RULE OF THUMB In most cases, three years should be sufficient, according to the IRS. However, this statute of limitations goes out the window if you dont report more than 25% of your gross income on a return, file a false return or dont file at all. You must keep your records indefinitely in the […]