Finding Tax Loopholes, the Blog

Are You Having Enough Taken out for Withholding?

Are You Having Enough Taken out for Withholding?
Well how are you supposed to know? A few easy steps and some light planning can help you figure this out. What you need to know: If you fail to estimate your federal income tax withholding properly, it may cost you in a variety of ways. If you receive an income tax refund, it essentially means that you provided the IRS with an interest-free loan during the year. By comparison, if you owe taxes when you file your return, you may have to scramble for cash at tax time–and possibly owe...
0 Commnets

Avoid the “Death Tax”

Avoid the “Death Tax”
“Why, Eckhardt, you oughta think about the future.” . . . Eckhardt merely scoffs at the statement, “You’re an A-1 nut-boy, and Grissom knows it.” Later as things had changed, he is told again, “Eckhardt! Think about the future.” Of course then Eckhardt is killed. Avoid the ‘Death Tax’. The above is taken from Batman, I am interested in all its characters and those who play them. However, this post isn’t about Batman. Recently, a big Estate I have been working on for well over...
0 Commnets

Your Home-Office Deduction/s

          More than one million new businesses are started each year. There are more than 27.2 million small, non-farm businesses in America. Of that Include 52 percent home-based businesses and two percent franchises. Of that, 52 percent are home-based businesses. 44 percent survive at least four years, and 31 percent survive at least seven years. Twenty-four percent of all new businesses begin with no outside financing.           What this is all pointing to (in my opinion) is there are a...
0 Commnets

Are You Having Enough Withheld?

If you fail to estimate your federal income tax withholding properly, it may cost you in a variety of ways. If you receive an income tax refund, it essentially means that you provided the IRS with an interest-free loan during the year. By comparison, if you owe taxes when you file your return, you may have to scramble for cash at tax time–and possibly owe interest and penalties to the IRS as well. When determining the correct withholding amount for your salary or wages, your objective...
0 Commnets

Release of Claim to Exemption. . .

            I have a lot clients who are divorced and they share (every other tax year) exemption of their child/ren. This is done by way of Form 8332 Release of Claim to Exemption for Child of Divorced or Separated Parents.             This is a pretty basic information form, but one that gets both abused and ignored. A lot of divorced parents aren’t even aware that it exist. Usually because they never really explain their situation fully to their preparer or they are still doing their own...
0 Commnets

What is the difference between us all…

What is the difference between us all…
As a professional tax preparer, I am often asked what is the difference between us.  Enrolled Agent, tax attorney, an accountant/CPA, a bookkeeper, and a tax preparer. So here you go… For a beginning, a professional Tax Preparer is an individual who prepares tax returns. A professional tax preparer can be an Enrolled Agent, a Tax Attorney, an Accountant/CPA, a Bookkeeper, or anyone really who professionally prepares tax returns for clients. Most return preparers are professional, honest...
0 Commnets

Without A Guarantee!

I’ve touched on the topic of the guarantee, but since having one or more guarantees is so important – especially when it comes to filing your taxes with the IRS – I thought I better go into a little bit more detail just to make sure you know what should be expected of a tax professional. In my assessment, the more guarantees, the better. So you know, I’m talking about IN WRITING guarantees, NOT some tax professional verbally telling you, “Oh, yeah – you’ll...
0 Commnets

When it comes time to do your tax return

When it comes to doing your taxes, one question that most people have to ask themselves at some point is, “Should I do my own taxes or hire a professional?” A tax professional can make life much easier. A good tax professional will by far save you more money than you would pay them in preparation fees. However you need to weigh up your own situation to determine the best and most cost-effective way to have your taxes prepared. So how do You know if you need a tax professional? The more...
0 Commnets

Choosing a tax Professional. . . Or Not Choosing An Expert In The Type Of Tax Service YOU Want/Need!

Most people know what they want when they are looking for someone to help them. However, in the case of filing a tax return, most people just assume all EA’s, Lawyers, CPA’s or those tax preparers from some fast food chain like tax prep service are about the same. But just like most other professional services, nothing could be further from the truth. Each tax professional has certain qualifications and expertise in certain areas. Again, people who help taxpayers file taxes for a...
2 Commnets

Net Operating Loss – NOL is it for you?

Net Operating Loss – NOL is it for you?
There has for sure been a lot of talk about tax returns lately and how someone can have a huge loss and then not pay taxes for a while…. Well, it really isn’t a big secret. I would hope that any first year tax preparer would know this. The rule that will let you right off income from taxation dates back to 1918 (I Think), U.S. Title 26 U.S. Code § 172 – Net operating loss deduction. It was enacted to prevent businesses from being penalized by the administrative convenience of...
0 Commnets