Tax Services
We provide personalized tax services to you and/or your business. Whether or not we do your Accounting and Bookkeeping we can provide professional tax preparation services to you and your business.
We provide the following Tax Services:
- Individual and Business Income Tax Preparation
- State Sales and Use Tax
- Payroll Tax
- Excise Tax
Income Property Tax Services
Are you a foreigner struggling to manage your income property tax returns? Our expert team can help you navigate the complex tax laws and regulations to ensure compliance and maximize your deductions. We specialize in helping non-resident property owners file their tax returns accurately and on time, so you can avoid penalties and reduce your tax liability. With our guidance, you can simplify your tax returns and save time and money. Contact us today for a free consultation and let us help you take the stress out of managing your income property taxes.
Taxable Business Entities
In general terms, for tax purposes business entities can be classified as either separate taxpaying entities or as flow-through entities. Separate taxpaying entities pay tax on their own income tax return. In contrast, flowthrough entities generally do not pay taxes because profits or losses from these entities flows through to their business owners who are responsible for paying tax on the income.
Entity Tax Characteristics
In deciding among the available options for taxing business ventures, owners and their advisors must carefully consider whether tax rules that apply to a particular tax classification would be either more or less favorable than tax rules under other alternative tax classifications.
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Double Taxation
Under the current system of tax rates, flow-through entities are generally considered to be superior to corporations for tax purposes because they generate income that is taxed only once while C Corporations produce income that is taxed twice. Flow-through entity income retains its character (ordinary, capital gain, tax exempt, etc.) and is allocated to or “flows through” to entity owners. The owners generally pay tax on their share of the income as if they had earned it themselves.
Subchapter S Corporation
S Corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flowthrough of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S Corporations to avoid double taxation on the corporate income.
Self-Employment Tax
Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is like the Social Security and Medicare taxes withheld from the pay of most wage earners.
Deductibility of Entity Losses
When taxable corporations are reporting losses for tax purposes, double taxation (or even single taxation) is not a concern. Losses generated by taxable corporations are called net operating losses (NOLs). While NOLs provide no tax benefit to a corporation in the year the corporation experiences the NOL, they may only be used to reduce corporate taxes in other years.
Internet Tax
On June 21, 2018, The United States Supreme Court ruled 5-4 in South Dakota v. Wayfair that states can mandate that businesses without a physical presence in a state with more than 200 transactions or $100,000 in-state sales collect and remit sales taxes on transactions in the state.
What to do with Tax Forms?
Form 1099-MISC, Miscellaneous Income – Payments of $600 or more for services performed by persons not treated as employees, such as fees to subcontractors, attorneys or accountants. File Business Tax Return!
Form 1099-NEC, Nonemployee Compensation – Professional service fees, such as fees to attorneys, accountants, architects, contractors and engineers. Fees paid by one professional to another, such as fee-splitting or referral fees. Payment for services, including payment for parts or materials used to perform the services if supplying the parts or materials was incidental to providing the service. Commissions paid to non-employee salespersons that are subject to repayment but not repaid during the calendar year. Fees paid to non-employees, including travel reimbursements for which the persons did not account to the payer, if the fee and reimbursement total at least $600. Payments to non-employee entertainers for services. Exchanges of services between individuals in the course of their trades or businesses. File Business Tax Return!
Form 1099-K, Payment Card and Third Party Network Transactions – A payment settlement entity (PSE) must file Form 1099-K for payments made in settlement of reportable payment transactions for each calendar year. A PSE makes a payment in settlement of a reportable payment transaction, that is, any payment card or third party network transaction, if the PSE submits the instruction to transfer funds to the account of the participating payee to settle the reportable payment transaction. File Business Tax Return!
Form W-2, Wage and Tax Statement – “Statutory Employees” If workers are independent contractors under the common law rules, such workers may nevertheless be treated as employees by statute (statutory employees) for certain employment tax purposes. File Business Tax Return
Schedule K-1 (1065 or 1120-S) – Share of Income, Deductions, Credits, etc. from Partnerships or S-Corporations. File Individual Income Tax Return!
Schedule E (1040) – Supplemental Income and Loss (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.)
File Individual Income Tax Return!
