Duluth/Gwinnett CPA: Be Sure You Get Every Legal Tax Deduction
Leaving no stone unturned should be your goal when preparing your year-end income taxes for both your business and yourself personally, with thoroughness being the best way to ensure that your returns are correctly prepared. Below is a sampling of such a critique to ensure that that a client has all of the legal tax deductions allowed and to also ensure that you report all of your taxable income:
Open Items for your Personal Return
-I did not get a year-end earnings statement from your investment advisor for your one account there that was after tax (not a pension account). Please review/advise.
-I did not get the K-1 from your real estate investment.
-I did not get your business expenses against your 1099/independent contractor income.
-I need your mortgage interest, car tag tax, and cash and property contributions to charity.
-So far I have one pension distributions for $12,000. Is this all from your pension accounts as last year you had listed $30K.
-Please be reminded that tax law requires all active S Corporation owners who are active in the business to take a fair salary given position and profit. Though you did not have any profits you issued a Form 1099 to yourself, which is statutorily prohibited as you are not independent, as you own the company. In the future, if profit levels remain at approximately the same levels I would show these payments as repayments on the loan balance due her. If profit levels increase then you would want to be a wage earner and receive a W-2 as tax law requires that all active employee owners take a fair and reasonable salary given position and profit.
-I did not see copies of checks and forms where you made estimated payments.
-I need a copy of where you board approved your ministerial allowance.
- I have not heard anything back from the IRS about any Form 5500 about your P.C., as your old pension account in the business name was closed in prior years.
To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/article2.html There you will also discover a wide host of resources for Atlanta Entrepreneurs.
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