FAQ’s

Audited Financial Statements are performed by a CPA, or more accurately, an audit of financial statements, is the review of the financial statements of a company or any other legal entity (including governments), resulting in the publication of an independent opinion on whether or not those financial statements are relevant, accurate, complete, and fairly presented. Financial audits are typically performed by CPA firms or practicing accountants due to the specialist financial reporting knowledge they require. Audited financial statements is one of many assurance or attestation functions provided by CPA firms, whereby the CPA firm provides an independent opinion on published information. Many organizations separately employ or hire internal auditors, who do not attest to financial reports but focus mainly on the internal controls of the organization. External auditors may choose to place limited reliance on the work of internal auditors. Read more

Compiled Financial Statements provide information from an organization’s accounting documents about their economic resources and obligations on a specific date, as well as their financial activities over a period of time. Compiled Financial Statements are usually prepared in accordance with Generally Accepted Accounting Principles (GAAP), which are the standards issued by the American Institute of Certified Public Accountants (AICPA), but they may also be prepared on other comprehensive basis of accounting, such as cash basis or tax basis, depending on the needs of the users of the financial statements. They are not audited or reviewed which means the CPA is not rendering an opinion on the accuracy of the results. Read more

You can receive income in the form of money, property, or services. This section discusses What is Taxable Income. It includes discussions on employee wages and fringe benefits, and income from bartering, partnerships, S corporations, and royalties. The information on this page should not be construed as all-inclusive. Other steps may be appropriate for your specific type of business. Generally, an amount included in your income is taxable unless it is specifically exempted by law. Income that is taxable must be reported on your return and is subject to tax. Income that is nontaxable may have to be shown on your tax return but is not taxable. A list is available in Publication 525, Taxable and Nontaxable Income. Read more

The series LLC allows business owners to divide multiple investments and debts and to operate each LLC as a separate entity with its own name, bank account, and recordkeeping. Under the master LLC, each separate entity can operate autonomously. Accountants have recommended tax structures to minimize tax liability. One new trend taking hold in over a dozen states is the Series LLC. It is worth a look. It will streamline operations, accounting, and cost. One option you might is for businesses to better protect your assets by setting up a series limited liability company or SLLC for short. Here is what you need about structuring your business as an SLLC and what protections the entity offers. Read more

Professional Standards promulgated by the American Institute of Certified Public Accountants AICPA dictate “how’ and “what” a Certified Public Accountant can and cannot do. This includes a disturbing and growing trend referred to as “Comfort Letters”. A comfort letter is sometimes requested by a bank, mortgage company, insurance company or vendor when considering a loan, mortgage or in general any business relationship where risk exist. The bank request that a CPA “Certify” a fact about your business. The request range from from “ I CPA certify that ABC Inc is financially sound and will not go out of business” to events to which a Miami CPA does not have knowledge of by looking at your bank statements such as “ I CPA certify that ABC Inc is not involved in any litigation”. Read more

Taxpayers of all types can benefit from hiring a Tax Accountant. To hire the perfect Accountant for your unique situation, I have a list of suggested questions to give you a head start in the interview: 1. How long have you been in business? 2. What are your professional qualifications? 3. Can you tell me something about the portfolio of your work for previous clients? 4. Do you consider yourself tech-savvy? 5. Tell me something about your firm. Read more

This year, business taxpayers also started receiving Form 1099-K, Merchant Card and Third-party Network Payments, reporting amounts received from payment settlement entities (from debit/credit cards and third-party network payers such as PayPal). To avoid taxpayer burden, the IRS stated in a letter to the National Federation of Independent Business on February 9 that it will not require Tax Preparer Miami to separately report amounts from Forms 1099-K on returns, and has no plans to do so in the future. Read more

Medicare-certified institutional providers are required to submit an annual cost report to a Medicare Administrative Contractor (MAC). The cost report contains provider information such as facility characteristics, utilization data, cost and charges by cost center (in total and for Medicare), Medicare settlement data, and financial statement data. CMS maintains the cost report data in the Healthcare Provider Cost Reporting Information System (HCRIS). Read more

When two or more people ally in profit making activities, they might account for those activities as separate businesses and, if individuals, report them on Schedule C or page 1 of Schedule E. Alternatively, they might file a partnership return. In that case an extra return is filed (i.e. Form 1065) and K-1s are issued to the partners. Each partner reports a share of the partnership taxable income on page 2 of Schedule E. Despite what many people think, this is not something that is a matter of free choice, except in special circumstances. In principle, a accountant should analyze the arrangement between the parties and determine whether or not the arrangement is a partnership for income tax purposes (What the individuals call the arrangement is only one of the factors to consider and probably not one of the more important ones). Read more

When the IRS or state has failed repeatedly to collect back taxes, they begin to seize assets. This process is called a “levy.” When they attach wages, it’s termed a “wage garnishment.” After providing either ten, thirty or sixty day notice through certified mail, they are legally allowed to seize bank accounts, demand payment from accounts receivable, take control of property for auction, and assume title on vehicles. Virtually anything of value can be seized to satisfy the outstanding debt. Read more

Cost Accounting is the branch of accounting which directly pertains to the overall cost of running and managing a business. The concepts and formula involved in this branch of accounting are based on standard accounting practices. Cost Accounting takes into consideration the expenses and the cash flow of an organization to analyze the cost of running it. Many CPA Firms mistakenly believe that cost accounting itself is an all-inclusive branch of accounts whereas that really isn’t the case. It is just the branch which deals with the cost of the business functions. Read more

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary Read more

A Certified Public Accountant Miami or CPA Miami is a special type of accountant. Officially it’s the title of someone in the United States, who has passed the Uniform Certified Public Accounting Examination and has met some additional state education and experience requirements to get this certification. This test is grueling and requires upwards of 150 hours of special education and Accountant Miami complies and reports it’s CPE to the Florida Board of Accountancy. Read more

Profit is the revenue remaining after deducting business costs, while cash flow is the amount of money flowing in and out of a business at any given time. Profit is more indicative of your business’s success, but cash flow is more important to keep the business operating on a day-to-day basis. Over the long term, a lack of profit has a negative impact on cash flow. Read more

Accountants ensure that financial statements comply with Generally Accepted Accounting Principles (GAAP). Preparation and presentation of financial statements follow many accounting standards that are accepted worldwide. An accountant makes certain that these standards are adhered to while preparation and presentation of the financial statements are being done. This ensures that the figures which might be presented in the financial statements give the accurate financial snapshot of the business. Read more

Why should I keep good Record keeping? will help you monitor the progress of your business, prepare your financial statements, identify source of receipts, keep track of deductible expenses, prepare your tax returns, and support items reported on tax returns. Read more

The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year. The P&L statement is synonymous with the income statement. These records provide information about a company’s ability or inability to generate profit by increasing revenue, reducing costs, or both. Some refer to the P&L statement as a statement of profit and loss, income statement, statement of operations, statement of financial results or income, earnings statement or expense statement. Read more

In financial accounting, a balance sheet or statement of financial position or statement of financial condition is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as government or not-for-profit entity. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a “snapshot of a company’s financial condition”.1 Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business’ calendar year. Read more

Los contadores pueden pedirle Información General sobre el ITIN, es un número tributario procesador otorgado por el Servicio de Impuestos Internos (IRS). Es un número de nueve dígitos que siempre empieza con el número 9 e incluye los numeros 70-88 como el cuarto y quinto dígito. A partir del 12 de abril del 2011, se ampliaron los números posibles para el cuarto y quinto dígito para incluir dígitos de 90-92 y 94-99, por ejemplo 9XX-90-XXXX. Consulte con un Despachos Contable. Read more

Advice for small businesses on what it takes to create a solid business plan, including forming an outline, forecasting credible financial information, and establishing a marketing strategy. Business Plans by the Numbers When writing a business plan, here’s how to run the numbers that matter without getting hung-up on those that don’t. S Corp, C Corp, or LLC? How to Start a Business or you already run one but are having second thoughts about its legal structure, you need to take this matter seriously. How to Set Up a Website Want to create a terrific website without spending a fortune? Check out this guide to building a low-cost, high-impact site. How to Start a Business and obtain capital can be one of the trickier aspects when it comes to starting a business. So how can you do your best to impress private investors? Advice on how to clearly and confidently deliver your pitch Read more

The IRS can assess a Trust Fund Recovery Assessment, also known as a [100\-percent penalty](https://www.accountantsinmiami.com/beware-personal-liability-for-payroll-taxes/), against each and every “responsible person.” for past due payroll taxes or other “trust fund” tax. Read more

To qualify for head\-of\-household tax filing status, you must file a separate individual tax return, be considered unmarried, and be entitled to an exemption for a qualifying person. … A head of household must pay for more than one\-half of the qualifying person’s support and housing costs Read more

Generally accepted accounting principles, or GAAP, are a set of rules that encompass the details, complexities, and legalities of business and corporate accounting. The Financial Accounting Standards Board (FASB) uses GAAP as the foundation for its comprehensive set of approved accounting methods and practices. Read more

Home HealthCare Accounting is different from the rest of the accounting services. It is skilled nursing care and certain other health care services that you get in your home for the treatment of an illness or injury. It allows a person with special needs stays in their home. It might be for people, who are getting older, are chronically ill, recovering from surgery or disabled. Read more

Whether you received the tax refund you deserved or think you could have gotten back more last year, here are five tips to help you maximize your tax refund this year. Don’t take the standard deduction if you can itemize. Claim your friend or relative you’ve been supporting. Take above\-the\-line deductions if eligible Read more

Form 1040 is an IRS tax form used for personal federal income tax returns filed by United States residents. The form calculates the total taxable income of the taxpayer and determines how much is to be paid or refunded by the government. Read more

Register with the IRS to apply for an updated Employer Identification Number (EIN) (you’ll need that to file your taxes and pay your employees) Register your new business structure with the state. Reapply for state licensure. Update your bank accounts and records to reflect your new business. Read more

A corporate tax is a levy placed on a firm’s profit by the government. The money collected from corporate taxes is used as a nation’s source of income. A firm’s operating earnings are calculated by deducting expenses, including the cost of goods sold (COGS) and depreciation from revenues. Next, tax rates are applied to generate a legal obligation that the business owes the government. Read more

Whether starting or change of ownership you will need to have a Healthcare business plan for AHCA/CMS approval you will need to have Healthcare business plan for AHCA/CMS approval. This new requirement took effect this year. How to Start a Home Healthcare Agency, or in the process of a change of ownership you will need to have a Healthcare business plan for AHCA/CMS approve health Care business plan requires very specific content which is tied into your Medicare Cost Report Preparation and Proof of Financial Ability to Operate which needs to be prepared and signed by a CPA. The AHCA Home Healthcare Agency Healthcare business plan also lends your Agency a sense of credibility and a great blueprint on how to start a Home Healthcare Agency and plan to manage and market the company which increases your chances of success. Read more

Un despacho contable es una organización de profesionales que presta servicios de naturaleza administrativa, contable, financiera, laboral y/o tributaria. … Las empresas deciden cuáles servicios contratar de acuerdo a sus necesidades, industria, actividad y volumen de operaciones. Read more

Accounting and bookkeeping work can take up a significant amount of business owners. Trying to balance your company’s accounting and all of your other tasks can be a challenge. Some business owners attempt to resolve these issues by hiring an in\-house accountant, which can be expensive or purchasing electronic accounting software, which may compound the problems due to the steep learning curve involved with using many of these programs. Instead of bogging yourself down in a sea of numbers, consider the freedom you can have when you take advantage of Bookkeeping Services by Accountants expert small business bookkeeping services. Read more

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary. Read more

Electronic Filing e\-file is a system for submitting tax documents to the US Internal Revenue Service through the Internet or direct connection, usually without the need to submit any paper documents. Tax preparation software with e\-filing capabilities includes stand\-alone programs or websites. Tax professionals use tax preparation software from major software vendors for commercial use. Read more

Offer in Compromise is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed. In special circumstances, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through an IRS payment plan. Read more

A federal IRS Tax Lien is the U.S. government’s right to keep or take a person’s personal property until that person takes care of unpaid federal taxes. The Internal Revenue Service will send a notice of federal tax lien that serves as a demand for payment. However, if taxes go unpaid, the IRS will place a federal lien on personal assets Read more

Sole proprietors can decide by themselves that they should close up shop. Whereas if your business is a partnership, limited liability company (LLC), or a corporation you and your co\-owners must make the decision to dissolve the entity according to the guidelines established in your articles of organization. Remember to document the final decision with a written agreement. Read more

An income statement or profit and loss account is one of the financial statements of a company and shows the company’s revenues and expenses during a particular period. It indicates how the revenues are transformed into net income or net profit. Read more

AHCA Financial Consultants experts at preparing the AHCA Proof of Financial Ability form 3100\-0009, Medicare cost reports, and utilization. Read more

Tax preparation is the process of preparing tax returns, often income tax returns, often for a person other than the taxpayer, and generally for compensation. Tax preparation may be done by the taxpayer with or without the help of tax preparation software and online services. Tax Services in Miami may also be done by a licensed professional such as an attorney, certified public accountant, or enrolled agent, or by an unlicensed tax preparation business. Because United States income tax laws are considered to be complicated, many taxpayers seek outside assistance with taxes (53.5% of individual tax returns in 2016 were filed by paid preparers). The remainder of this article describes tax preparation by someone other than the taxpayer. Read more

El contador proporciona servicios de contabilidad de contabilidad y declaración de impuestos de calidad para propietarios de pequeñas empresas. Somos una firma de contadores Publico en Miami de servicio completo con un compromiso genuino con un servicio profesional, asequible y personalizado con sede en Miami, Florida. Somos especialistas en proporcionar servicios de contabilidad en miami, consultoría financiera y de contabilidad específicamente adaptados a pequeñas y medianas empresas y propietarios de negocios. Cada negocio debe tener un firme defensor financiero. Accountants in Miami (Contadores en Miami), proporciona contabilidad financiera, servicios tributarios y consultoría AHCA para individuos y todo tipo de negocios. Los contadores en Miami se mantienen al tanto de los últimos cambios en la ley de impuestos, utilizan las tecnologías más efectivas y mantienen una reputación impecable de experiencia e integridad. Read more

Because the fast\-food business is so competitive, it is vital that you do your research. Start by talking to someone who has done this before or consult an accountant who has clients in the industry. Business networking events (such as those operated by Small Business Development Centers, SCORE, and local Chambers of Commerce) offer a great venue for picking the brains of fellow businesspeople. Try to find out what works, what doesn’t, and what they would do differently. If you are aware of restaurants that have failed, try to identify why (online community forums are a great way of gauging market needs and customer opinions about local food service businesses). Read more

Estimated Taxes is the method used to pay tax on income that is not subject to withholding. This includes income from self\-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. You also may have to pay estimated taxes if the amount of income tax being withheld from your salary, pension, or other income is not enough. Read more

Accountants in Miami are expert Miami Healthcare Accounting Services providers. Accounting Services provider. We have the relevant experience healthcare accountants require. We can quickly identify the financial reporting areas of greatest risk to your organization and perform our services more efficiently and effectively. Read more

Selecting The Right Accountant as they act as a trusted consultant and advisor to your small business on opportunities, risk management, bookkeeping. Picking the right accountant is important for your business’s financial future. Here’s what you should check for when hiring an accountant. An accountant manages your finances and can have an impact on the trajectory of your business. Before hiring an accountant, you should conduct a thorough search, ask thoughtful questions of potential candidates and be sure to screen those you think could be the right choice. Here are some factors to consider before choosing an accountant. Read more

Whether you are planning to start a new Home Healthcare Agency, or in the process of a change of ownership you will need to have an AHCA Home Healthcare Agency Business Plan for approval. This new requirement took effect this year. An AHCA Home Healthcare Agency Business Plan requires very specific content that is tied into your Proof of Financial Ability. The Business Plan also lends your Agency a sense of credibility and a great blueprint on how you plan to manage and market the company which increases your chances of success. Read more

Tax Changes for Small Businesses can increase their business interest expense deductions on their tax returns. For 2019 and 2020, the amount of interest expense businesses can deduct on their tax returns is increased to 50% from 30% of taxable income. The new laws provide a 20% deduction for those businesses. The only limitation is on service\-based businesses, like law and accounting firms that make more than $315,000 per year ($157,500 if single). C corporations are also getting a big deduction: The new law lowers the tax rate from 35% to 21% Read more

El oficio de los Contadores en Miami viene acompañado de múltiples y arduas tareas, las cuales, deben ser debidamente diligenciadas para poder desempeñar la tarea de la manera más adecuada. Así mismo, informarse sobre los nuevos reglamentos y toda la temática en general es indispensable para ofrecer al cliente las respuestas que este necesita. Read more

Accountants in Miami is a private accounting practice employing medical accountants with expertise in the healthcare industry. Physician groups and or clinics, and other medical professionals, track the books, manage to bill and calculate and file taxes. They also prepare quarterly and annual financial statements for ownership or to file with regulatory authorities, if required. We also prepare the AHCA Proof of Financial Ability to Operate Form 3100\-0009 for AHCA accreditation. Read more

There are seven IRS Tax Tables brackets for most ordinary income: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. The U.S. has a progressive tax system, which means that as you move up the pay scale, you also move up the tax scale. Read more

A Certified Public Accountant (CPA) is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Examination and have met additional state education and experience requirements for certification as a CPA \& operate a CPA Firm. Accountants who have passed the Exam but have not either accomplished the required on\-the\-job experience in a CPA Firm or have previously met it but in the meantime have lapsed their continuing professional education are, in many states, permitted the designation “CPA Inactive” or an equivalent phrase. In most U.S. states, only Certified Public Accountants (CPAs) who are licensed can provide to the public attestation (only a CPA Firm) (including auditing) opinions on financial statements. Read more

Home Healthcare Agencies have to be careful and as is a Nurse and Employee or Independent Contractor? Independent nurse contractor or employee? Although Homehealth Care Agencies have wholeheartedly promoted this career option on Nursing Career Hub. There are, however, several recent negative IRS rulings against nurse contractors and the IRS is asking “Is a Nurse and Employee or Independent Contractor?” Because the very nature of nursing is based on strict standardized procedures, the IRS and almost all healthcare settings consider nurses employees, not independent contractors. The IRS simply does not view nurses as self\-employed in a healthcare facility setting. Nurses do not use their own equipment (Sorry, stethoscope and bandage scissors aren’t enough.); they work scheduled hours; and function under the policies and procedures of the facility, says Accountants in Miami a Healthcare Accountants and expert in Healthcare Accounting. Read more

Are you opening a new business this summer? The IRS has many resources available for individuals that are opening a new business. Here are six tax tips the IRS wants new business owners to know. Read more

There are numerous ways of reducing tax liability that is available to decrease the amount of money that we must pay in April. Some methods are fundamental; others are more esoteric, depending on one’s financial position. They all, however, can be condensed down into one of three basic categories: Read more

An IRS Payment Plan is an agreement with the IRS to pay the taxes you owe within an extended timeframe. You should request a payment plan if you believe you will be able to pay your taxes in full within the extended time frame. If you qualify for a short\-term payment plan you will not be liable for a user fee. Read more

Litigation Support, it turns out, is no more confined to expert witness testimony than the solar system is to Earth. Earth is what we know most about and it’s where our understanding begins. However, everything doesn’t revolve around us and we’re steadily becoming an incrementally smaller part of something much larger that’s constantly expanding. Read more

It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Internal auditing achieves this by providing insight and recommendations based on analyses and assessments of data and business processes. With a commitment to integrity and accountability, internal auditing provides value to governing bodies and senior management as an objective source of independent advice. Professionals called internal auditors are employed by organizations to perform internal auditing activity. Read more

Accounting Periods is the length of time between the Closing the Books in order to prepare the Financial Statements. There are three (sometimes four) Periods of interest in most businesses; the fiscal year, the quarter, and the month. In some highly volatile businesses, the fourth Periods — the week — may be of interest. Read more

Thankfully, the odds that your tax return will be singled out for an audit are pretty low. The IRS audited only 0.4% of all individual tax returns in 2019 (down from 0.59% in 2018). Plus, the vast majority of these exams were conducted by mail, which means that most taxpayers never met with an IRS agent in person. That’s good news. Read more

It happens to the best of us. You gather all your tax documents, crunch the numbers, and double\-check everything on the tax return. No sooner have you dropped the return in the mail or pressed the e\-file button, but a new W2 or 1099 comes in the mail. Ah, now you remember. And now you need to Amended Returns \& Form 1040\-X. Read more

Comprar o arrendar un auto ofrece algunas ventajas, también presenta inconvenientes, y pueden existir otras alternativas que tengan más sentido financiero para ti. Read more

Su médico es su experto para su salud y bienestar. Recurre a su mecánico para mantener su coche en las mejores condiciones. Pero, ¿por qué contratar a un  contador? ¿Debería, como propietario de una  pequeña empresa, recurrir a sus  Contadores  cuando necesite asesoramiento estratégico u operativo sobre cómo dirigir sus negocios? Read more

Los tres formularios usados para presentar la declaración de impuesto federal sobre el ingreso personal son; Formulario 1040EZ, Formulario 1040A y el Formulario 1040. Read more

As an employer you create a Payroll Tax Liability every time you pay employees. You generally must withhold federal income tax from your employees’ wages. You withhold part of Social Security and Medicare taxes from your employees’ wages and you pay a matching amount yourself. To figure how much to withhold from each wage payment, use the employee’s Form W-4 and the methods described in Publication 15, Employer’s Tax Guide and Publication 15-A, Employer’s Read more

Change of ownership means an event in which the licensee sells or otherwise transfers its ownership to a different individual or entity as evidenced by a change in federal employer identification number or taxpayer identification number, or an event in which fifty\-one percent (51%) or more of the ownership, shares, membership, or controlling interest of a licensee is in any manner transferred or otherwise assigned. A change of ownership application, fees, and all other required forms must be received by the agency at least 60 days prior to the date of change of ownership. Refer to Licensing Requirements for more information. Complete and submit the Health Care Clinic Licensing Application, Health Care Licensing Application Addendum, and Proof of Financial Ability to Operate Form. Read more

No and maybe.Child support payments are neither deductible by the payer nor taxable to the recipient. When you calculate your gross income to see if you’re required to file a tax return, don’t include child support payments received.Under divorce or separation instruments executed on or before December 31, 2018, alimony payments are deductible by the payer and taxable to the recipient. When you calculate your gross income to see if you’re required to file a tax return, you should include alimony payments received under such an instrument.However, under divorce or separation instruments executed after December 31, 2018, and under certain instruments executed on or before December 31, 2018 but later modified, if the modification expressly states the repeal of the deduction for alimony applies to the modification, alimony payments are neither deductible by the payer nor taxable to the recipient. When you calculate your gross income to see if you’re required to file a tax return, don’t include alimony payments received under such an instrument. Read more

No, employers aren’t required to report any information that employees claim on their Form W-4, Employee’s Withholding Certificate to the IRS. However, Forms W-4 are still subject to review. Employers may be directed (in a written notice or in future published guidance) to send certain Forms W-4 to the IRS. The IRS will also continue to review employee withholding compliance. The IRS may send you a letter (commonly called a lock-in-letter) specifying the withholding rate and adjustments to use to calculate the amount of tax to withhold from wages paid to a specific employee. Read more

No, reverse mortgage payments aren’t taxable. Reverse mortgage payments are considered loan proceeds and not income. The lender pays you, the borrower, loan proceeds (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home.With a reverse mortgage, you retain title to your home.Depending on the plan, your reverse mortgage becomes due with interest when you move, sell your home, reach the end of a pre-selected loan period, or die.Interest (including original issue discount) accrued on a reverse mortgage isn’t deductible until you actually pay it (usually when you pay off the loan in full). Also, a deduction of interest may be limited because a reverse mortgage generally is subject to the limit on home equity debt, which is not deductible unless the proceeds are used to buy, build, or substantially improve the home that secures the loan. For information on deducting mortgage interest and the debt limit that applies, see Publication 936, Home Mortgage Interest Deduction. Read more

Yes, under certain circumstances, although a child generally won’t receive enough additional income to make the child’s social security benefits taxable.The taxability of benefits must be determined using the income of the person entitled to receive the benefits.If you and your child both receive benefits, you should calculate the taxability of your benefits separately from the taxability of your child’s benefits.The amount of income tax that your child must pay on that part of the benefits that belongs to your child depends on the child’s total amount of income and benefits for the taxable year.To find out whether any of the child’s benefits may be taxable, compare the base amount for the child’s filing status with the total of:One-half of the child’s benefits; plusAll of the child’s other income, including tax-exempt interest.If the child is single, the base amount for the child’s filing status is $25,000. If the child is married, see Publication 915, Social Security and Equivalent Railroad Retirement Benefits for the applicable base amount and the other rules that apply to married individuals receiving social security benefits.If the total of (1) one half of the child’s social security benefits and (2) all the child’s other income is greater than the base amount that applies to the child’s filing status, part of the child’s social security benefits may be taxable. You can figure the taxable amount of the benefits on a worksheet in the Instructions for Form 1040 and Form 1040-SR or in Publication 915. Read more

A Bookkeeper oversees financial data and compliance by maintaining accurate books on accounts payable and receivable, payroll, and daily financial entries and reconciliations. The Bookkeeper performs daily accounting tasks such as monthly financial reporting, general ledger entries, and record payments and adjustments. Additionally, many Bookkeepers in Miami also assist with basic HR duties like new hire documents, compliance, and temporary disability insurance, and workers’ compensation filings, making them an indispensable part of an organization’s fiscal fitness. Read more

Accountants can receive an award as a whistleblower under the IRS program. They do not have any special internal reporting requirements. Contact Us Click Here. Read more

Accountant’s liability refers to the legal liability assumed by an individual when conducting professional accounting work. Accountants are liable for any misstatements that occurred while auditing and preparing financial documents for a client.. Contact Us Click Here. Read more

The rule states that a member in public practice shall not disclose any confidential client information without the specific consent of the client. … Even where the intent has been to warn others of pending financial harm, the courts have held that CPAs must not divulge client information. Contact Us Click Here. Read more

Use IRS Form 8832 to instruct the IRS on how to classify your business entity. As an LLC, your election can be any one of the three types recognized by the IRS for this type of entity. If you have already classified your LLC to be taxed as a corporation, you do not need to refile Form 8832. However, if your LLC was previously being taxed as a partnership or sole proprietorship, you must file Form 8832 and mark box 6a to elect taxation as a corporation. If your LLC is a foreign entity, you cannot change your LLC into an S-corporation. Read more

If you’re a U.S. citizen or resident, you may qualify for this credit if before the end of 2020 —you were age 65 or older; oryou retired on permanent and total disability and received taxable disability income.A married individual must file a joint return to claim the credit unless the individual lived apart from his or her spouse for the entire taxable year or qualifies to file as head of household. Even if you meet the above tests, you can’t claim the credit if either of the following exceeds certain amounts: your adjusted gross income; the total of your nontaxable social security benefits, nontaxable pensions, nontaxable annuities, and non-taxable disability income. Read more

You either need to change the owner of the car to the company or pay the note yourself. If you pay the note yourself then you can deduct mileage and other auto expenses on your personal return. Contact Us Click Here. Read more

An extension is only an extension for time to file your tax return, it is not an extension to pay. Paying past the original due date of the tax return, even if you have filed an extension, will cause interest and penalties to accrue on your tax due. It is best to pay as much as you can by the due date of the return, even if it is not the full amount due. You can request an installment plan with the IRS or apply for a personal loan through a financial institution to cover the tax due, but depending on the amount of tax owed, either of those options may end up costing you more in interest than if you had just paid late. Ultimately, you should seek advice from a CPA that knows specifics about your current tax situation as the solution that is best for you will vary greatly depending on your personal financial situation.. Contact Us Click Here. Read more

The short answer? No, you cannot. Contact Us Click Here. Read more

Meals for business purposes are 50% deductible. Contact Us Click Here. Read more

Yes. A general rule is if you offer insurance to one full-time employee, you must provide it for the rest of your full-time employees. The same thing applies to part-time employees. Also, if your entity is an S-Corp and you are a greater than 2% shareholder of the S-Corp then the premiums paid on your behalf will be reported on your W-2 as wages, subject to income tax withholding. Read more

Similar to a corporation, an LLC is the individual legal entity that has the capability to sue or to be sued. … To specify, if an LLC is sued and owes a financial judgment, the plaintiff generally cannot pursue the members’ personal assets or bank accounts. Read more

When you sell a capital asset the sale results in a capital gain or loss. A capital asset includes most property you own for personal use or own as an investment. Here are 10 facts that you should know about capital gains and losses: Read more

You must file a federal income tax return if your income is above a certain level; which varies depending on your filing status, age, and the type of income you receive. Check the Individuals section of the IRS website at http://www.irs.gov or consult the instructions for Form 1040, 1040A, or 1040EZ for specific details that may help you determine if you need to file a tax return with the IRS this year. You can also use the Interactive Tax Assistant available on the IRS website to determine if you need to file a tax return. The ITA tool is a tax law resource that takes you through a series of questions and provides you with responses to tax law questions. Read more

Do I Need an Accountant? Yes, You Do. Accounting is Complex. You are not required by law to hire one, but Accountants are experts at finding deductions. Read more

Having professional IRS Representation at an IRS audit can reduce anxiety during a very stressful situation. Knowing the IRS wants to take a second, closer look at your tax return, whether it is the entire return or just a portion of it, such as expenses claimed for meals, entertainment, or travel, can be a very nerve-racking experience. Read more

IRS Seizures is When the IRS physically seizes your assets and seizures are usually the IRS’s last resort and are a very extreme measure. A more common method is a Levy where they withdraw money from your bank account without notice. Read More

A Passive Loss is a financial loss within an investment in any trade or business enterprise in which the investor is not a material participant. Passive Activity Losses can stem from investments in rental properties, business partnerships, or other activities in which an investor is not materially involved. In order to be considered a non-material participant, the investor cannot be continuously and substantially active or involved in the business activity. Read more

Sale of Home Gains & Losses IRS tax code recognizes the importance of home ownership by allowing you to exclude gain when you sell your main home. To qualify for the maximum exclusion of gain ($250,000 or $500,000 if married filing jointly) you must meet the Eligibility Test, explained later. To qualify for a partial exclusion of gain, meaning the exclusion of gain less than the full amount, you must meet one of the situations listed in Does Your Home Qualify for a Partial Exclusion of Gain? , later. Read more

The Sale of aSmall Business usually is not a sale of one asset. Instead, all the assets of the business are sold. If you’re considering selling your small business, consider these seven steps to stay on the offensive. Determine the value of your company. …Clean up your small business compiled financials statements. …Prepare your exit strategy in advance. …Boost your sales. …Find a business broker. …Pre-qualify your buyers. …Get business contracts in order. Read more

Tax-exempt organizations are those that have applied for and obtained status as tax-exempt from federal or local authorities. These organizations are often called 501(c)(3) organizations, which relates to the section of the IRS tax code specific to exempting certain nonprofits. Read more