It’s about taking advantage of all available tax deductions, credits, adjustments, and offsets.
Your income can be large or small — it can be from your job, pensions, dividends, business, rental properties, trust funds, inheritance, etc.
The taxes that you pay are based on your “taxable income”, also referred to as your “adjusted gross income”. This means, you start with your income, subtract deductions, and then calculate your taxes.
There are things you can do before and during tax season to put yourself in a better position.
Personal (Individual) tax return should always include all sources of income, as defined by the IRS. There are many deductions and credits that can lower your tax obligations.
Limited Liability Company (LLC) lets you write-off a number of business expenses and avoid double taxation. Plus, you get the Qualified Business Income (QBI) Deduction; which lets you claim a tax deduction worth up to 20% of your qualified business income.
Rental Property income taxes can be filed in different ways depending on how the rental property is held. For example, one way is if income from your rental property is paid directly to you, then you are likely filing a Schedule E, which causes your rental income to be counted as part of your ordinary income, which flows through to your taxable income.
Trust / Estate must file an income tax return if it generates income. The IRS should be notified of all distributions and income.
Homeowners Association must always file a tax return listing incomes (dues) received and expenses paid. Tax returns are to be filed with both the IRS (federal) and State.
With over ten years preparing taxes, and just as many years handling business operations, along with starting out as a technology analysts, Pat is able to provide you with multi-layer tax solutions; strategic tax options.
My process includes talking with you to understand your goals. I.E., are you planning to buy a house, rental property, start a business; are you going to need capital to grow your business. Or, maybe you just want to reduce the amount of taxes that you are currently paying.
There are many tax deductions, credits and adjustments available. It is a matter of determining if you can qualify for such tax advantages. I check to see which tax items can apply to you. For example, if you own a rental property are you deducting travel and meals when visiting your property, maintenance, repairs, state fees, mortgage interest, advertising, property taxes, insurance, and more.
Preparing taxes for a trust, includes strategy for offsetting the trust’s income and deducting things like management and administrative fees. There are different types of trust, and thereby different tax considerations.
For homeowners associations, considerations are given to reporting all income, including dues, fines, late fees, along with being sure to deduct all repairs, management and consulting fees.
And, if you are planning to sell your home, a rental property, your business, or any other major asset, you should have a plan before you sell, so that you know what your tax options and payments will be.
My focus is to provide you with the right tax strategy, that serves to minimize your tax liabilities.
