Having a good relationship with your tax accounting is essential. I hear from so many people, “Taxes stress me out” and “Ugh, I just hate this time of year.” Or, the cringe-worthy, “Guess what I did?!” But by working together we can make the process of taxes much easier on you and us.
I realize that this process does not come without work. You have to gather all your documents, track your donations, add up your medical expenses, etc. But, by asking us questions before making tax-related decisions we can make future tax time less painful both emotionally and financially!!
Calling or emailing before you purchase an investment property can save heartache and money. Is the timing right during the year to maximize deductions? Can you rent the house for enough money to cover the expenses? If not, can you afford the negative cash flow monthly? What is a deduction and what has to be amortized?
Calling or emailing before you start a business and decide on an entity type is so important. So many people log onto LegalZoom and type away without knowing what they are signing up for. The entity type LLC is tossed around like it is a gift from above; however, that may not be the best choice for your company. Maybe for a year or two a sole proprietorship is better– or an S Corp. There are benefits and consequences for each type of entity; discussing it ahead of time can save both time and money down the road.
Sitting down with your accountant and letting them know what has been going on can help fill in the gaps in tax information. Did you have a baby? Did a parent pass away and leave you money or property? Is a child entering college? Did you sell your house or buy a second house?
There are so many pieces to the tax puzzle, and dropping off information and running away as fast as you can is usually not the best option. Stay and talk awhile. Have a cup of coffee and let us know what’s going on. That benefits all of us in the long run.