CTP

DECEMBER 2, 2024

Tax audits are, unfortunately, a possibility that every taxpayer should be prepared for. Even if you’ve crossed your t’s and dotted your i’s, the IRS does sometimes choose tax returns at random for an audit. Many tax planners offer audit support as an add-on service. The post Help, I’m Being Audited!

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audit Tax auditor tax return 52

CTP

APRIL 15, 2022

For instance, how do you determine if a tax planner is charging a reasonable fee? Taxpayers will first want to understand the difference between reactive tax work and proactive tax planning. Another example of an unconscionable fee is if a tax preparer were to take the fee but not do any of the work.

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tax preparation Tax tax return tax planning 52

CTP

JUNE 10, 2022

This can lead to overlooking one key part of the sales process: tax planning. The decisions you make in structuring the sale will have a direct effect on later tax implications and how much of a profit you actually end up making.

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Sales Tax income tax tax return 52

CTP

APRIL 29, 2022

One of the many benefits of working with a tax professional is the guidance they provide in developing tax return positions that substantiate why certain income qualifies for tax-exemption or why you are eligible for a certain tax deduction. This is actually a lower standard than some may assume.

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CTP

OCTOBER 2, 2023

Currently, there are over 1200 different tax credits available, and unlike tax deductions, these credits provide a dollar-for-dollar reduction to your tax bill. In some cases, taxpayers may even be able to go back and file an amended tax return if they learn that they qualified for a tax credit after filing season.

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Tax tax planning Government tax return 52

CTP

NOVEMBER 23, 2023

If this is lacking, then the IRS can simply ignore your attempt to make a special allocation on your tax returns and instead allocate the profits and losses based on ownership percentage. Remember that it is possible to adjust the agreement to match your tax allocations—with the help of an attorney who is well-versed in tax law.

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Tax tax return income tax tax planning 52

CTP

MAY 10, 2023

Taxpayers sometimes make the Section 179 election on their tax returns and don’t even realize the deduction has been suspended—that they didn’t receive the benefit that tax year. This can unfortunately affect tax planning down the road. As with all tax planning, thinking through a strategy in advance is the key.

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Tax tax planning Maine tax return 52

CTP

DECEMBER 8, 2022

This restriction makes sense when you consider that the owner does not have to claim the income on their tax return. Lastly, depreciation can be a major tax planning tool. For instance, any expenses that are directly associated with the rental—like advertising, commission, or cleaning—are not deductible.

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Real Estate Tax tax return tax planning 52

CTP

AUGUST 3, 2023

If you are holding an asset as an investment through your pass-through business, when you sell that asset it is recorded as capital income and then reported on your personal tax return as the owner. Taxpayers who began their careers more recently often have a lower income and can often benefit from the 0% rate.

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Tax income tax tax return tax planning 52

CTP

NOVEMBER 25, 2022

Saving for college through a 529 plan can simultaneously help you reach your college savings goals and reduce your taxes. In most states, the money you contribute to your plan is tax-deductible on your state income tax return. As your money grows, you’re not taxed on the income your plan returns.

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Education Tax accounting and finance Michigan 40

CTP

NOVEMBER 21, 2024

Investing in a tax plan can feel like a risk for taxpayers who are used to filing their own tax returns or focusing on basic compliance. In theory, you may see the benefits of a proactive approach where you implement strategies that will result in tax savings years down the line.

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tax planning Tax tax return tax preparation 52