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What Is A 1031 Exchange?

Jul 20

Posted by admin in Taxes

The IRS has an exchange provision that allows you to put the extra money you make off the sale of real estate into another equal or higher value property without paying taxes on the capital gains. You can?t do this on your primary house, but you can on a beach condo or a rent house. There are some things the experts suggest you do.

Get what the IRS calls a ?Qualified Intermediary.? They will charge between $500 and $1500 for the deal. They escrow the money from the time you sell to the time you buy the new property. You must trade up within 45 days of selling and close the deal within 135 days. Make sure your ?QI? is bonded and insured for negligence and fraud.

Watch the details. For example, if you bought a property for $200,000 and have depreciated it out for taxes to $100,000. Now you sell it for $400,000. Think you?ll roll over $200,000? Nope. The IRS says you have to drag the depreciation with you ? only $300,000 total.

Also, don?t rush to trade up. Sometimes its best just to pay the tax. Don?t end up with something worse or something that appreciates slower than what you had. Its not always a good deal.

Check out 1031.org for the Federation of Exchange Accomodators.

Stuart Simpson
http://www.voip-telephony-review.com/

Writen By : Stuart Simpson

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How To Choose A Good Tax Advisor

Jul 17

Posted by admin in Taxes

There is a major difference between a tax preparer and a tax advisor. Tax preparers, although many may advertise that they can save you money with your taxes or get you a better return, their actual job is really focused on the actual paperwork of filing out your taxes. A tax advisor is actually what you should look for if you are hoping to save money on your income tax.

Here are some tips you can use to choose a good Tax Advisor:

? Make sure that the advisor focuses specifically on tax advice, and is not just a general financial advisor. Many financial advisors, although they may be able to give some good advice, offer so many services that they can not keep up on all the new laws and information available about all of them. If you are looking to have your tax situation seriously considered than find someone who works only in the tax advice field.

? Find out a potential advisor?s credentials. There are Accredited Tax Advisors, and Enrolled Agents who are licensed by the government to represent taxpayers. These type of credentials as well as lawyers and financial advisors that focus specifically on taxes are most likely to be able to save you the most money.

? Shop around for fees and prices. Pick someone who has a competitive fee. However depending on your situation you may not need someone who is expensive, especially if you are looking for help with your individual taxes. If you are looking for help with a complicated business you may want to spend a little more because what they will be able to save you will be worth it.

? Choose a tax advisor that matches your needs and personality. If you run a very conservative business and would rather stay out of the target range as being likely to be audited, you will want to steer clear of aggressive tax advisors, but if you are okay with the possibility of being audited and saving more money go ahead and work with an aggressive advisor. You will want to be careful though and make sure that you trust the advisors understanding and knowledge because if you are audited and a mistake was made, it can cost a lot of money.

? Make sure the advisor is available year-round.

? Stay away from advisors that you feel may try to sell you financial products. They may have a conflict of interest and not really save you all they could have because they were pushing the sale of a product.

? Beware of advisors that promise a guaranteed amount of money that you will save before they know anything about your financial situation or taxes. Look for someone who seems to have a firm grasp of their job rather than someone who is offering a sales pitch.

? Get multiple opinions from a few advisors you feel are professional, especially if a lot of money is involved this will insure that you are well-informed and can choose the plan that offers the best savings.

Chris Simons is a prolific freelance writer. You are welcomed to visit http://tax.cyberinformer.com, for more information on Tax Preparation.

Writen By : Chris Simons

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How To Find A Good Tax Accountant

Jul 17

Posted by admin in Taxes

A tax accountant has been trained as an accountant and is able to inspect, prepare, and maintain financial records for a business or individual. However a tax accountants main focus is on preparing and maintaining tax information.

Tax accountants also advise businesses about the tax advantages and disadvantages of certain business decisions. Accountants must have skills in math and using the computer because computers are often used to make graphs, reports and summaries. Nearly all companies require that a tax accountant have at least a bachelor?s degree in accounting, and many even require a master?s degree level of education.

Almost all businesses and many individuals would greatly benefit from having a regular tax accountant. So how do you choose the right tax accountant for you or your business? Here are a few questions that may help you make the decision:

? Is one-on-one contact important to me or my business? In this case look for a smaller firm. Or is a team of professionals better suited for my needs? If this is the case look for a larger firm.

? Will I need advice in many different expertise areas? Or will I simply need someone to advise me in tax matters? If you are going to need help in a wide variety of areas consider a team of accountants, or you make sure the firm you are considering has network ties to other firms that could handle things they can?t.

? How complex are my needs? Do I need someone just to handle tax returns and year-end financial summaries or do I need a financial plan, retirement plan, employee benefit plan or other tax related plans? Discuss your needs with potential firms do research and find out what they have done for other businesses.

? Does the firm or individual have a good reputation? Ask for references, talk to friends and business associates, taxes and finances are a major aspect of your business or individual needs and you want to make sure you get someone who can handle your situation.

? Is the individual or firm qualified? Make sure they have liability insurance and a supervisory body you can file complaints with. Make sure they are CPA?s or Certified Public Accountants, which means they have vowed to adhere to certain standards. Find out if they are members of the American Institute of Certified Public Accountants or the New York State Society of CPA?s. If they are it means that they have had continuing education in their field and must undergo peer reviews.

? Do they bring a proactive approach to your financial situation? Do they understand your goals and provide ways to reach them?

? What do they charge? Make sure that their fees are competitive, shop around. If the price is much higher or much lower than other firms it may point to a problem.

? Make sure the firm or office is open year round and that you can get help whenever it is needed. There are some tax accountant firms that close for part of the year.

Chris Simons is a prolific freelance writer. You are welcomed to visit http://tax.theconsumerguide.net, for more information on Tax Preparation And Tax Advice.

Writen By : Chris Simons

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Useful Tips To Help Make Your Tax Preparation A Breeze

Jul 17

Posted by admin in Taxes

Preparing your taxes can be daunting and stressful, especially since the average person is not an expert on tax rules. So here are some basic tax preparation tips to help make your tax preparation go a little more smoothly.

Choosing the Right Forms

Everyone needs to file some type of form 1040. There is the 1040EZ form, the 1040 or the 1040A form. 1040EZ is for people whose income is less than $50,000 annually and earned interest is less than $400. It also the form to use for people who are not itemizing deductions, who do not have dependents, who are not blind or over sixty-five. The 1040A is for those whose income is less than $50,000 and do not need to itemize deductions. The 1040 form is for everyone else.

There are various other forms known as schedules that are also often needed in conjunction with the 1040 forms. Schedule A is used to itemize deductions, schedule B is used to report taxable interest or dividends greater than $400, schedule C or C-EZ is used to report business profits or losses, schedule D reports capital gains and losses, schedule E reports supplemental income and losses, and schedule EIC is used to claim earned income tax credit.

Gather What You Will Need to Fill Out the Forms

There are numerous papers, forms and quite a bit of information that is needed to prepare a tax return. Even if you are not preparing your own taxes you will need to provide these things for the person that is.

? W-2s
? 1099s
? Receipts and records for a business or extra income
? Social Security Number
? Records of losses, or profit
? List of life events that may be used to get deductions such as marriage, and moving

Filing Out the Forms

This is the part that takes the longest. Every household and individual situation is different, so it would be impossible to explain everything that a taxpayer would need to know to finish their return, but there are a few general things to know that will help your return be processed faster.

?Round money amounts to the nearest dollar, this reduces errors and the IRS does not expect you to follow pennies throughout your return.

?Make sure your return is neat; if you need to start out using a pencil then go back when you have finished and write it in with pen.

?Make sure to file on time, even if you owe money and can?t pay. You can always file for an extension and will have fewer penalties if the forms are in on time.

?If you owe money use a 1040V form to help the payment process go more smoothly. You will also want to have your social security number somewhere on the check so that the IRS can identify you specifically.

?Keep tax records for at least three years. If needed you can use a tax return from a previous year to help remind you of deductions and other information.

?You can get help even from the IRS. There is a recorded information service supported by the IRS that has answers to questions on more than 140 topics. To reach this service call 1-800-829-4477. There are also volunteer services that will help answer questions and guide you through your tax return.

Chris Simons is a prolific freelance writer. You are welcomed to visit http://tax.cyberinformer.com, for more information on Tax Preparation.

Writen By : Chris Simons

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Do You Know The Major Tax Return Mistakes To Avoid?

Jul 17

Posted by admin in Taxes

Tax season always brings out talk about 1040 EZ forms and W-2s, but most of us are in the dark about what to do with our tax returns even with the long set of directions the IRS puts in with the forms. There is always the option of paying someone else to take care of it, and for many people it is best option. However, most people feel it is a little strange to pay someone to get their money back so they struggle through it on their own. If you worked at only one company and no deductions or supplemental income filling out your taxes is relatively simple, but this is not the case for most people. Most people have numerous deductions, credits, and supplemental income that require extra work when filing out a tax return. While filing out your tax return may not be the most fun thing to do, there are a few precautions that should be taken to avoid extra problems later on.

Check W-2 and 1099 Forms

W-2s and 1099 forms report the income of a taxpayer. The taxpayer receives a copy of this form, but that is not the only place these forms are sent. Companies and employers are also required to submit these forms to the IRS. When you receive your W-2 or 1099 it is important to check the numbers against your own records and make sure they are correct. You will need to inform your employer so that they can change the information with the IRS. If this is not done and there are discrepancies between the information the government has and the information you report, it could cause a lot of problems later on.

Dot your T?s

When paying for taxes you owe make sure that you make the check out to the United States Treasury. Writing it out to the United States Treasury instead of the IRS makes it harder for the check to be used by a thief who can easily change the To: line. The second common mistake with paying taxes is simple enough to avoid: always double check that you have signed it.

E-File

If you are worried about mistakes or have a difficult return, using e-file is probably the best bet. The e-file system will cut down on math mistakes and other errors. If something is left off of the return it will not file until it is fixed. The IRS also has set up a system where the return can be submitted and if there is a problem it will be returned within seventy-two hours. The taxpayer will also be notified of the problem and how to fix it. E-file is also much faster and free, so there isn?t really any reason not to use it.

Chris Simons is a prolific freelance writer. You are welcomed to visit http://tax.theconsumerguide.net, for more information on Tax Preparation.

Writen By : Chris Simons

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Tax Help Secret: Avoiding The Entreprenuer\’s Curse

Jul 10

Posted by admin in Taxes

Your days as an entrepreneur and businessperson are consumed with one primary activity; making money. Whether you think in terms of growing your business, getting the word out there, or some fancy new marketing technique, your days and weeks and months in business are focused on that one group of activities. In fact, some of you are marketing machines.

Tax Secrets of the Rich Found Here

Maybe you\’ve developed a new product line. Or, set up a joint venture with a new partner. If you\’re a real estate investor, you\’re looking for another deal or strategy for locating under-valued properties.

No matter how you break it down, entrepreneurs are single-focused. MAKE MORE MONEY. You live it, you breath it and you sleep it.

Asset Protection

I call it the entrepreneur\’s curse.

Don\’t get me wrong. It\’s not completely bad. In fact, the most singly focused people I know are the most successful. But building your business up can\’t be your only focus.

There are two BIG reasons why.

Taxes and Lawsuits.

Left unmanaged taxes and lawsuits will eat you alive.
Taxes do it slowly but surely. They chip away at your net worth a little at a time. It can be so subtle, that you\’ve stopped noticing. Let\’s face it, when was the last time you looked at your pay stub (yes, even if you\’re self-employed). There\’s one line of income and three lines of taxes (Fed, State and FICA) they\’re alone. But when was the last time you really noticed it?

You\’ve been conditioned not to care.
But every dollar that you overpay in taxes is a lost opportunity to build wealth. Think about it; if someone handed you $10,000 or $20,000 to invest in your business, couldn\’t you leverage the heck out of it?

Maybe you\’d buy a piece of (almost) no money down real estate and flip it for $20,000 profit.

Or launch an ad campaign – radio or print.

Or start a web marketing campaign.

Whatever your strategy of choice, you would parlay that money into something bigger and compound the returns on top of it.
But if you throw that money away by unnecessarily overpaying your taxes, it\’s gone. (Remember, a penny saved is a penny earned) And so is the opportunity. Forever. What a shame!

Then there\’s lawsuits. They mess you up differently. If taxes steal away your money in the night, lawsuits are like a tiger. Waiting. Stalking. Circling. And then, at the opportune moment – BAM! It\’s over. They pounce on you and you don\’t even know what hit you.

It might be an angry tenant, or the passenger in a car that you ran into. It could be your spouse or a disgruntled employee. It could be any one of a thousand reasons that people can sue you (there are millions of lawsuits each year).

Whatever the reason, before you can fully regain the use of your senses, you\’re upside down and inside out. And it can take years before you can pull yourself up by the bootstraps and start over again.

Then, you find you\’re digging yourself out of a big hole.
It doesn\’t have to be that way. There is a better way. A way for you to build consistent protected wealth that lasts for generations.

Tax Strategies

That\’s what my new Wealth Accumulation program is all about.
The last thing I want to see is you work for years building a great asset base – only to have someone bring it toppling down. It\’s not necessary and you deserve better than that.
I am trained as an attorney and practiced in the State of New York for 12 years as the senior partner of my own firm, where I was admitted to both the State and Federal Bars and specialized in the areas of business and real estate.

I have benefited from the strategies he teaches and I\’ve saved thousands and thousands of dollars in the process.

Ladies and Gentleman, I give you
The Tax Saving Attorney,
Drew Miles.

P.S. It\’s the little things in life that make all the difference. Missing the details here could be devastating to you and your family.

P.P.S. Be a hero to those you love. Do it right the first time.

Drew has combined what he learned during formal education, informal education and twenty five years of business experience in the development of programs designed to teach people how to build and preserve lasting wealth. He is an author, teacher and international speaker in the areas of asset protection, and tax saving and wealth building strategies.

Writen By : Drew Miles

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Tax Deductions – Mr. C.P.A. Can I Deduct A Pizza? You Too Can Deduct Your Fun By Using Tax Tips

Jul 9

Posted by admin in Taxes

Recently, I stumbled across a concept that could change your financial life. You can call it a paradigm shift or a new perspective or just a different way to look at things.

This single concept can save you tens of thousands of dollars each year. Its soooo powerful and yet its completely underutilized. Learning this simple technique can dramatically impact your financial picture.

Tax Deductions the rich use to stay ahead

I was speaking about tax savings at a seminar and there was a spontaneous outburst of questions.

Can I deduct my health insurance? How about my new truck? I?m taking horseback riding lessons. Are they deductible? What about my vacation?

As we worked through people?s list of concerns, it dawned on me. You?ve been trained to ask the wrong question.
Let?s suppose you call up your C.P.A. and ask, ?Hey Lenny, Can I deduct a Pizza? What do you suppose Lenny?s response would be?

He?d probably think you had gone mad ? ?Are you crazy, he?d say. You can?t deduct a Pizza!?.

Tax Strategies

But if you called me and asked the same question, you?d get a different response altogether. I?d probably pause for a moment and respond ?Well, that depends.? You see, if you and I went to an Italian restaurant and ordered Pizza and a couple of beers, the meal would be deductible (at the rate of 50%) so long as we discussed business.

Same thing with your vacation if you conducted your annual meeting while you traveled. The equestrian lessons are deductible as education and the new truck is deductible to the degree that you use it for business.
Which brings up a key point: It?s not the item, it?s the circumstances.

Tax Deduction Secrets

Most business people and their advisors wrongly focus on the item (the truck, the lessons, and the trip). The trick is to make your circumstances open the door to the tax deductions.

So, instead of asking ?Is this deductible? ? you should start asking HOW is this deductible? Then, all you have to do is create the circumstances that allow for the deduction!

All the Best,
Drew Miles, The Tax Saving Attorney

Drew has combined what he learned during formal education, informal education and twenty five years of business experience in the development of programs designed to teach people how to build and preserve lasting wealth. He is an author, teacher and international speaker in the areas of asset protection, and tax saving and wealth building strategies.

Writen By : Drew Miles

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