Category: Tax Planning

  • I cancelled pre-election tax planning offers

    I cancelled pre-election tax planning offers

    Tax planning has always been a larger part of my practice than tax return preparation. That means that this is my busy season. I offered a number of fixed fee tax consultations under assumptions that the 2017 tax code will be basically the same as this current year. Now that seems unlikely. There are suddenly hundreds…

  • Who pays more, who pays less under 2017 tax reforms

    Who pays more, who pays less under 2017 tax reforms

    Federal income tax changes are likely in early 2017 under a new Republican-led government. While we do not know all the details yet, it seems that we can formulate a few basic trends common to the Trump and Ryan tax reform plans. There is a strong reason to believe that the following tax reform proposals…

  • The return of flat fee tax planning

    The return of flat fee tax planning

    This month I am bringing back the flat fee income tax planning service that I promoted a few years ago. I stopped marketing this service last year under criticism from other accountants that I was underselling the value of this type of expertise. I saw it as a great way to attract new clients that justified deliberately…

  • New Jersey death tax update

    New Jersey death tax update

    Until now, New Jersey had both an estate tax and an inheritance tax. Estate taxes are paid by the deceased person’s estate before the money is distributed to their heirs. Inheritance taxes are paid by the heir who inherits the money or assets. The New Jersey law referred to as the Transportation Trust Fund bill negotiated by state…

  • Tax concepts in marriage and divorce

    Tax concepts in marriage and divorce

    When a married couple owes federal taxes there are different outcomes that may be applicable and available. This blog post lists some of the concepts that IRS recognizes that might be considered in any stressed marital tax settlement: Joint and several liability Injured spouse allocation and relief provisions Innocent Spouse Relief Separation of liability Equitable relief…

  • Real estate flippers beware

    Real estate flippers beware

    IRS warns real estate investors to beware of tax schemes targeting real estate investors. The schemes tend to be offered by financial firms that are not professional tax advisers but promise favorable tax savings through the improper use of like-kind exchanges.  Sales pitches may encourage taxpayers to exchange non-qualifying vacation or second homes.  Many promoters of like-kind…

  • Selling a rental property?

    If you are planning to sell a rental property then it is likely important to estimate the taxes that will be due on the transaction. The calculation can be complicated but fortunately we have software available to help with the number-crunching. Just give a call and we can schedule time to run through the possible scenarios.…

  • Why people prepare their own tax returns

    Why people prepare their own tax returns

    Most Americans have the capacity to prepare their own tax returns. But should they? In cases where self preparation is not logical and is not cost-effective, what is the underlying reason driving the decision to self-prepare tax returns? This blog post explores some observations, Self-prepared tax returns About half of all individual tax payers can and should submit their own…

  • Professional tax preparation fees for 2016

    Professional tax preparation fees for 2016

    Average tax return preparation rates are published by the National Association of Accountants in the national and regional average tax preparer fee survey for 2016. The fee for my online remote tax services is typically about 1/3 lower than typical walk-in tax preparers. However, late season returns or services that do not use online cost savings are…

  • Is it smart to pay no taxes?

    Is it smart to pay no taxes?

    Donald Trump brings fresh attention to the possibility that affluent individuals and businesses can pay no federal income taxes. Last night, at Hofstra University, Trump said “That makes me smart”. Is he right? Is it smart to pay no income taxes?  The first point we should reach is that it is possible for an affluent…