Real estate is an attractive investment opportunity, but investors need to be prepared for potential taxes to truly maximize their profits. The way you are taxed on a property will first depend on how you acquired it. Common means of acquiring a property include simply purchasing it, inheriting it, or receiving it as a gift. […]
By Dominique Molina, CPA MST CTS You’re in the business of tax planning, and you pride yourself on being the go-to expert for navigating the complex world of taxes. You’ve mastered the ins and outs of deductions, credits, and retirement plans, but there’s a common myth that might be narrowing your view: the idea that
What does it look like to operate ethically in the world of tax planning? Fortunately, the Office of Professional Responsibility (OPR) provides guidance on key ethical questions. Their primary resource, known as Circular 230, covers “Regulations Governing Practice before the Internal Revenue Service.” Depending on your status and credentials, adhering to Circular 230 may even
Ethical Issues in Tax Planning: Conflicts of Interest Read More »
Behaving ethically should be a personal goal for every tax professional—but it is also required by law. To help guide you, the Office of Professional Responsibility (OPR) publishes a document called Circular 230 that covers “Regulations Governing Practice before the Internal Revenue Service.” Certain professionals, such as enrolled agents (EAs) and Annual Filing Season Program
Ethical Issues in Tax Planning: Unauthorized Practice of Law and Competence Read More »
If you are working with business partnerships or entrepreneurs trying to decide on an entity type, be sure to introduce them to the tax benefits of establishing a partnership. As a pass-through entity, any income, losses, credits, and deductions from the partnership “pass through” to its partners who are taxed at personal income tax rates.
The accounting landscape is changing rapidly. CPAs and EAs are rethinking their strategies for practice management while moving from compliance to advisory services. As firms look to provide more value to clients, many have introduced Client Advisory Services (CAS). It is one of the fastest growing segments in the profession. The American Institute of Certified
AICTP’s Roadmap to Tax Planning: 10 Keys to Growing Your Accounting Advisory Services Read More »
Many entrepreneurs shy away from choosing a partnership as their entity type. A partnership is simply a formal agreement between two or more parties to manage a business together and share the profits. From a tax perspective, partnerships are often viewed as too complicated and can come with tax disadvantages when you have non-passive partners
Making the Most of Business Partnerships: How to Use Special Tax Allocations Read More »
Each type of business entity comes with its pros and cons. Entrepreneurs may be more aware of some of the downsides of launching a partnership, such as possible tax disadvantages for non-passive partners. However, a major benefit of setting a business up as a partnership is the option to leverage special tax allocations. Below is
Tax Planning for Partnerships: What Are Special Tax Allocations? Read More »
Do you feel that you pay too much in tax? You’re not alone. The General Accounting Office estimates that Americans over-pay their taxes by almost a billion (yes, that’s billion) dollars each year! That’s why tax planning is gaining in popularity. Why do so many pay more than they have to? Some obvious reasons are
5 Critical Questions to Ask Your Accountant About Tax Planning BEFORE Tax Season Read More »
As you begin working with taxpayers to plan out their cash flow for retirement, you will want to advise them on the timing for withdrawing those funds. This is where the “bucket strategy” comes into play. The bucket strategy looks at four basic types of retirement income: For taxable non-retirement investments or brokerage accounts, taxpayers
Tax Planning for Retirement Income: Implementing the Bucket Strategy Read More »