While some are confused about Bitcoin (BTC), others have profited from this cryptocurrency. If you or your business includes Bitcoin as a profit strategy, you may have questions about its taxability. Here are a few questions and brief answers from Pacific Tax & Financial Group.
How is virtual currency like Bitcoin handled for federal tax purposes?
The IRS treats virtual currency as property when it is held as a capital asset. Bitcoin transactions resulting in a loss or gain will incur a capital ...
Do you have one employee or more? If the answer is yes, then you have a responsibility to handle payroll taxes. Many of our business clients trust us to manage the tedious details of:
withholding federal and state income taxes
calculating FICA taxes from employee wages
paying employer FICA taxes
paying federal & state-mandated unemployment tax
If you plan to handle payroll taxes yourself, or trust tax software, here are 3 common pitfalls that could cost you hefty fines from the IRS.
Breaking up taxable income to your children or even grandchildren and other family members is a proven technique in tax planning. It may allow you to lessen your family’s total taxes. Yet, this technique could be more valuable these days. With the new ATRA (American Taxpayer Relief Act), new sets of tax rates are applicable to regular income while tax breaks for dividends and capital gains favors investors with upper-income.
If you own real estate or securities and other income-producing assets, your ...
Does your tax preparer help you to realize your short and long-term goals? Whether you are a filing as a business or individual, Pacific Tax & Financial Group can help you to minimize your taxable income to achieve your financial goals. Our team has the privilege of serving individual and businesses throughout Carlsbad, Escondido, Fallbrook, Oceanside, San Marcos, San Elijo Hills, Valley Center and Vista.
We understand that maximum tax savings aren’t realized by just one avenue. Therefore, we take a ...
Are you considering hiring an accountant to handle the financial aspects of your business? Many have been or are currently in your shoes. Trusting another person with such a vital component of your business can seem like a huge leap. That because it is! Nevertheless, there may come a time when hiring an accountant saves you time, energy, and money. Yes, an accountant can save you money (we’ll cover this too)!
Our accountant team has the privilege of serving business of all ...
If a year or more of back taxes is looming over your head, it is time for a solution. Avoiding the problem is simply going to create an ever-growing snowball that will eventually avalanche your finances. At Pacific Tax & Financial Group, we help navigate individual taxpayers and small business owners out of the worst back tax stories imaginable. Below are some of the things that we can do for you.
Build A Tax Strategy
Everyone’s tax situation differs. Hence, it is vital ...
There’s no doubt that today’s housing market can feel like a minefield for some, especially with its past bubble debacle. Nevertheless, it has become better, and the outlook of home-ownership has steadily improved within the last 10 years. Although being wary of the rate and deal that you sign before buying a home is important, there is another area that is equally important if you wish to save money.
Pacific Tax & Financial Group has expert tax professionals who help homeowners and ...
Filing taxes can be problematic. But they can quickly become stressful if you’re trying to beat the deadline. April 18th is steadily approaching. Do you have a plan? If you have been putting off filing due to scheduling time to do it yourself, you may be heading for disaster. Some of the worst taxes filing mistakes occur when taxpayers are pressed for time or tired.
There is a different solution!
Pacific Tax & Financial Group has a team of tax professionals that are ...
It’s tax season and many San Marcos business owners will make their customary filings to the IRS. However, tax season is more than just time to take care of your responsibility to the IRS. This period presents an excellent opportunity to get your business’s financial house in order. Do you have business debt? Are you making the most of your business situation to lower your taxes? Have you spoken to a financial counselor and tax professional? If not, here are some ...
Hardly anyone enjoys the prospect of paying for medical attention. If you did pay for medical expenses during 2016 tax year, do you plan on claiming them as a tax deduction? You can if your expenses fall into the IRS’s Medical and Dental Expenses code. The code requires that your medical expenses exceed ten percent of your 2016 adjusted gross income (if you are over the age of 65 then the rate is 7.5%). Do you fall within this taxpayer category? ...
As the end of the fiscal year approaches, businesses will begin to make their beginning of year dash to get taxes complete. If you are a small business and experience the stressful rush of tax record compiling and filing during the first quarter of the year, there are ways to avoid this. And the faster you begin the less stress you will endure. At Pacific Tax & Financial Group we always advise our small business clients to consider their taxes year-round. ...
When planning financially and for taxes, many people fail to pay attention to estate taxes. While there are times when an estate must pay tax, you don’t want to leave your family with this burden if it can be avoided. But how can that be achieved? One successful approach is to work with a tax professional who fully understands the “ins and outs” of estate planning. Pacific Tax & Financial Group has such experience. Below is an overview of estate taxes ...
It is not uncommon for people to make mistakes on tax returns, but when they occur in businesses, auditors can be less forgiving. Hence, it is best to make yourself fully aware of common tax preparation mistakes that can cost your business. Nearly every year there are tax code changes that effect small businesses. Pacific Tax & Financial Group alerts all of its small business clients about tax codes updates so that they can adjust to save money.
Call us today at ...
Approximately 8.2 Million Americans owe back taxes. So you are not a minority if you have gotten behind in filing taxes. But there is work to be done to get your tax situation back on track. There are a number of reasons why people owe back taxes. Some of the most common include:
Forgot deadline (busy schedule)
Confused about how to complete taxes
Had a death or debilitating illness in family
Busy as active military
Records have been lost or destroyed
Every year we come across San Diego County residents and business owners who failed to take advantage of the Earned Income Tax Credit properly. In fact, the IRS reports that a little over a fourth of tax payers that apply for EITC have done so with errors. Could you fall into this category? Check below to make sure you avoid the most common errors.
1. Claiming a child who is not a qualifying child.
A qualifying child must meet all four requirements including ...
Getting ahead of your taxes is always the smarter tax planning decision.
Filing your taxes could be quite a hassle. This is especially the case when the year begins and a multitude of items vie for your attention. As new business quarters begin, students return to school, and new goals are set, filing taxes can easily get put on hold. Here are a few things to keep in mind so that your taxes don’t become a last minute ordeal.
If you owe ...
Although your business may be small, it doesn’t mean that it isn’t unique. Cookie cutter approaches to accounting may work for the basic concepts of business, but those won’t work if you’re trying to reach the next level.
Accounting software is beneficial for basic business finances, but an accounting service is best for complex issues and financial planning. If you are looking for the best small business accounting service in San Marcos, look no further! Pacific Tax & Financial Group has an ...
Every year the IRS Tax Code is revised, revamped, and renewed in specific ways. Unfortunately, every year millions of individuals and businesses take no note of these changes, which ultimately costs them money. Are you aware of this year’s Tax Code changes?
Pacific Tax & Financial Group is one of San Marcos and North County San Diego’s most reliable and fastest tax planning providers. Our experience in tax preparation extends for over 20 years. We have a deep understanding of how ...
Experience and professionalism that you can trust!
Retirement is one of the biggest goals and one of the most important. It is a culmination of years of work and is meant to cover a variety of essentials during your golden years. Health, family, leisure, home, and financial security are all wrapped up in retirement.
Although it’s never too late to save for retirement, starting early is the better option.
People are living longer and more active lives in older age. In fact, most view ...
As in years past, many businesses are finding difficulties in tax planning due to the expiration of extenders that gave temporary tax breaks. Additionally, the nuances of the Affordable Care Act (ACA) require careful insights to reduce taxability. However, there are a number of new regulations that businesses should consider when formulating their year-end tax strategy. Below are a few.
Last year Congress enabled a 50% bonus depreciation which was to last through 2015. That depreciation rule has been extended through ...
Among the greatest anxieties that parents have is how to pay for their children’s higher education. Many work long hours and take on extra jobs to ensure that their children get an education that can lead to more options in life.
However, few take the time to plan ahead and get the most power out of their children’s education fund.
Why not get the most out of your hard work by planning the best route to your child’s future education? With the costs ...
Many people are aware of tax preparation services, but some of our clients are not aware of our investment planning services. Our office has been offering financial advising since 1998. We also are licensed to sell life insurance and long term care insurance.
Choosing a financial planner as your team member is an important decision. Here are some factors to take into consideration when making that decision.
1) Do you have a trusting relationship with that person.
2) Does the financial planner clearly explain ...
In addition to your bombardment of solar installation calls you have probably been seeing a lot of marketing from the Hero program which allows you to make certain improvements to your house and add the cost of the improvements to your property tax payments to be paid off in a defined number of years.
I'm here to clear up some facts. The Hero program is offered by a private company known as Renovate America Inc. under the federal energy program known as ...
As you near retirement or plan your long term goals many people include paying off their home loan on their to do list. Well there are some valid reasons not to pay off your home loan.
1) Mortgage interest may be deductible so the effective rate may be less than is actually stated
2) The equity in your house doesn't grow. The value of your house may appreciate however the equity in your house does not appreciate.
3) A Mortgage is generally cheap money. ...
I came across an interesting article the other day concerning the rising costs of doing business in the US and the lack of middle class jobs. The article talks about the lowering of corporate tax rates to combat these two issues at the same time. I think a major problem we have is that the large corporation don't bring the profits back to the US so they can avoid our large corporate tax rate. Just look into articles about Apple and ...
There are several issues to consider when starting a new business. Some of these issues are type of business entity to choose. Forms of business entities include sole proprietor, partnership, c corporation, s corporation or an LLC. There are pros and cons for each type of business entity. Some of the issues are income tax related and some are legal liability considerations. Visit our website for more information or call us at (760) 471-2040.
Being a small business owner isn't the easiest thing to do. Being your own bookkeeper while running your own business can be next to impossible. There are several types of commonly overlooked business deductions.
Most business owners use their own car for business. When claiming the auto expense deduction you can either use the business portion of your actual expenses or track your business mileage and take the federal mileage allowance. The 2013 mileage allowance deduction is $.565 a mile. The 2014 ...
Tax credits are a great way to reduce your tax liability. There are two main types of tax credits - refundable and nonrefundable. A refundable credit will reduce your tax liability dollar for dollar and then once your tax liability is $0 any remaining credit will then be refunded back to the taxpayer. A non-refundable credit will reduce your tax liability down to $0 and then the remaining credit will be carried over to a future year. Although refundable tax credits ...
There are several ways to legally lower your tax liability. A couple of ideas to lower your taxes would be to shift your taxable investment earnings to tax free or tax deferred investment vehicles. This can be accomplished by buying state municipal bonds from the state that you live in or through a mutual fund, purchase US government bonds, or invest into a tax deferred annuity. You can also utilize a tax deferred IRA or similar qualified retirement plan to shift ...
One of the easiest way to save tax dollars is to maximize your deductions. The more deductions you accumulate the lower your tax liability will be. Some of the common deductions include property taxes, tax portion of your car registration fees, mortgage interest deduction and private mortgage insurance. The not so obvious deductions would include charitable donations, donations of "stuff" to a non-profit organization and volunteer mileage and out of pocket expenses when you volunteer your time to a non-profit organization
Per the IRS records the number of audits on individual tax returns is on the rise. The good news (if you can consider it that) is that a majority of the increase in audits is seen in correspondence audits. Correspondence audits are done through the mail. This is a good thing is the issue in question is easily explainable. The correspondence audit isn't a good audit if you are missing documentation, the documentation would file volumes of books or you need ...