Frequently Asked Questions

I just got a BILL from IRS. I prepared my return using a popular tax software program. What should I do now?

Make an appointment! Tax Software programs can’t replace an educated professional asking the right questions.

We see many self-prepared returns with mistakes regarding Employee Business Expenses, Sale of Assets, Filing status, Home Office, etc.

Do teenagers need to file a tax return?

If they have earned income over $5,250 or unearned income over $850 they owe tax!

I received a 1099 Misc Income. I haven’t made any Estimated Tax Payments. Could I be in trouble?

Yes; you could owe an additional 15.3% SE tax on top of your regular income tax. IRS will also access penalties. Now is the time to see us. We can advise on what deductions are available so you can reduce your SE income. This will save you at least 30 cents in tax, for every dollar of deductions!

I received $1 Million dollars from my great, great aunt. What do I do?

Enjoy! The estate paid the tax!

What happens when I sell my home?

If the sale proceeds are over $250K you will need to report the sale on your tax return. The good news is that you will get an exclusion on calculated gain of $250K for single and $500K for married couples.

I had a BIG loss in my small start up business. I know I don’t owe tax. Do I have to file a return?

Yes; whenever you are engaged in a “business” activity IRS wants a return. The good news is this loss can be carried to another year, or even better the loss can be carried back to a year when you paid taxes AND YOU GET A REFUND!

Should I incorporate my business?

There are many good reasons to incorporate, such as liability protection and some relief from Social Security Taxes. However, Entity selection can be complicated and always depends on your total business and non business situation.