It is always recommended to file a tax return to get any withholding back. In addition, it is a good opportunity to bring the conversation into the table on taxes, filing obligations, withholding, deductions and credits. This is something your tax preparer can help you with. The younger the kids get to know about the tax system, the less likely they will be in trouble in the future or stressed about filing and reporting.

Most individuals who are buying and selling securities would qualify as investors. They buy securities, keep them short or long term and then sell to generate gain. The gain or loss is then reported on their tax return together with other sources of income. In the opposite, individuals that would speculate on the market daily may be considered daily traders. There is a combination of requirements for such individuals to be considered traders. Some of them include substantial business activity, the time they devote, holding period of the securities, etc. Whether you are an investor or a daily trader, you need to have some knowledge on the market rules, wash sales and capital gains. Give us a call today at: 404.944.2586 to discuss!

When making a cash donation to a charity, there are two things you need to consider: 1) is this a qualified charity, such as a 501c3 organization?; and 2) will I get a receipt for the donation/ prove of donation? Unfortunately, not all charities are eligible to receive donations you can write off from your taxes. Also, not all charities are obliged to issue a receipt if the donation is below certain amount. Check out with your tax professional for more information on what documentation you need to keep for your records and what is the impact of the donation on your personal taxes.

If you cannot pay your tax, do not stress out! There are several options based on your financial situation which can help you get out of delinquency. The IRS payment plans are a good starting point. They vary based on your ability to pay debt and the amount owed. You may also qualify for Offer in Compromise. The worst thing you can do is to disregard the debt and neglect the IRS letters. Late payment fees and interest continue to accrue during the whole period until the tax is fully paid. Reach out to your tax preparer and work out a payment plan that will satisfy both – the tax authorities and you. We are here to help you!

It is a myth only businesses must make estimated taxes. Individuals, sole proprietors, partners, S-corporation shareholders must make estimated taxes if they expect to owe tax of $1,000 or more; C-corporations must make estimated taxes if they would owe $500 or more. It is important to understand that if you do not make estimated taxes, there is a penalty, as well as penalty for payment of estimated taxes late. The fact you may have a refund on your taxes does not mean you are not going to be charged a penalty if your estimated tax payments are late. Contact your tax professional and verify you are in line with your withholding and/or estimated taxes are due and when.

Contact your tax professional! If you are ready to start your own business, you should be aware of all the requirements to keep you and your business in compliance. Do not get overwhelmed with all the requirements and deadlines. Find a good tax professional who will hold your hand and help you get everything done timely and in a professional manner. It is one thing to do the research yourself and to find out what you need to do, another thing is to do it right. And then, would you be certain that this is the right business structure for you?; filed the right documents with state and local authorities?; missed any deadlines?; aware of tax deductions you may miss?... you know exactly how much time you spent to make your dream come true and start a company of your own. Do what you gotta do to keep your business running and leave the compliance stuff to the pros.

For your business expenses to be deductible they need to be ordinary and necessary. Talk to your tax professional, do not wait until tax time to find out whether you can deduct certain expenses and be surprised some expenses are limited. Recordkeeping is also essential to qualify for a business deduction.

You must keep a mileage log and when we say a mileage log, we mean it! In order to qualify for a vehicle deduction, you need to have a solid record of all business trips by date, purpose of the trip, starting and ending point and the miles for the trip. At the end of the year, you should be able to provide business, commuting and personal miles. It is highly recommended to keep track of all your vehicle expenses – gas, oil change, tolls, parking, car wash, etc. Based on your supported documentation, your tax professional will advise you on the proper vehicle deduction. Check out some mileage apps for your smart phone. It will help you a lot!

There is no immediate answer to this question and some further research has to be performed based on your business and personal tax situation. In general, C- Corporations are built to raise capital from their large number shareholders. C- Corporations are subject to a flat rate of corporate tax. If you are a small business and have less than 100 shareholders, S-Corporation might better work for you. S- Corporations are pass-through entities, which means net income flaws through to the shareholders and they report it on their personal tax returns. S-Corporations do not pay corporate tax on a federal level but might be subject to state and local taxes.