Tax Resources

Business Tax Insights: IRS Audit Mistakes To Avoid

You may be surprised how many businesses we work with that are unaware tax information effecting their business.  This is especially the case if you are suddenly being audited by the IRS.  You’ll find this blog timely if:   You use electronic accounting software to track and file your taxes You use credit card statements to substiate business expenses   As a full-service tax preparer, we continually look into tax law changes and what they mean for our business clients.  Whether you are an ... Read more

Work-Related Devices That You Can Write Off

During the 2019 tax season (the filing cycle for this year’s taxes), new tax reforms are proposed to do away with deductions for un-reimbursed employee business expenses.  However, if you are a business owner, you will still have the option of deducting business expenses.  But which ones?  Take a look at this list courtesy of Pacific Tax & Financial Group.  After reading the information below, if you have questions feel free to contact us by phone at (760) 471-2040 or via ... Read more

Working Your Way Out Of Bad Tax Problems

Are you involved a severe tax situation?  If so, it is wise to get help from a professional trained in IRS tax services.  The U.S. tax office has several ways to collect taxes owed to them.  Those methods can cause extensive damage to one’s financial well-being.  Our team at Pacific Tax & Financial Group assists clients who are confronting tax issues that seem to be overwhelming. Unfiled Tax Returns The IRS keeps a database of taxpayers who have not filed returns.  Sometimes they ... Read more

7 Questions Answered about Bitcoin & Taxes

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 ... Read more

Avoid These 3 Payroll Tax Blunders

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. Worker ... Read more

Splitting Income with Your Family

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 ... Read more

Hiring the Right Professional For Your Taxes and Finances

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. Tax Preparation We understand that maximum tax savings aren’t realized by just one avenue.  Therefore, we take a ... Read more

Getting Out Of A Back Tax Jam

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 ... Read more

Maximizing Your Housing Tax Breaks

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. Taxes. Pacific Tax & Financial Group has expert tax professionals who help homeowners and ... Read more

Beating the Tax Filing Deadline

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 ... Read more

Getting ahead of business dept and taxes

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 ... Read more

Are Your Medical Expenses Tax Deductible?

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?  ... Read more

3 Ways To Avoid Business Tax Filing Stress

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.  ... Read more

Advanced Planning to Avoid Estate Taxes

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 ... Read more

Small Business Tax Preparation Mistakes That You Should Avoid

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 ... Read more

Do you owe back taxes?

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 If ... Read more

Top 3 Most Common San Diego County Eitc Errors

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 ... Read more

Get Ahead of Your 2016 Taxes

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. Timely Payment If you owe ... Read more

2015 End of Year Business Tax Strategies

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. Bonus Depreciation Last year Congress enabled a 50% bonus depreciation which was to last through 2015.  That depreciation rule has been extended through ... Read more

How to Choose a Financial Planner

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 ... Read more

6 Reasons why not to pay off your home loan

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. ... Read more

How to reform our corporate tax system

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 ... Read more

Business Deductions

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 ... Read more

Tax Credits

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 ... Read more

Ways to lower your tax liability

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 ... Read more

Tax deductions are like free money

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 When ... Read more

IRS Audits on the rise

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 ... Read more

10 common tax deductions you shouldn’t miss

Here are 10 common overlooked tax deductions for the tax return self preparer. 1. Alimony payments 2. Self-Employment Tax Deduction 3. Self-Employment Health Insurance Deduction 4. Self-Employment retirement plan funding and deduction 5. IRA deduction 6 Education Expenses Deduction 7. Tuition and Fees Deduction for College Expenses 8. Student Loan Interest Deduction 9. Health Savings Account (HSA) funding deduction 10. Moving Expenses Tax Deduction Click here for more information Give us a call today to wee what we can do for you. Read more

Is this the end of the tax free “short sale”

Currently there is a tax break for people who short sell their principal residence. Historically if you short sold your house, meaning you owe the bank more than your house is worth then the unpaid difference would be considered taxable income. In 2007 Congress changed the rule to allow the cancellation of debt income (COD) to be non taxable. This was a great benefit to many homeowners that were upside down on their mortgage and needed some relief so they could ... Read more

New IRS Health FSA rules

The IRS recently announced the Health FSA's can have up to a $500 carryover of unused accounts the the next plan year. This creates and exception to the long-established use it or lose it rule. Your employer will be required to updated their plan to take advantage of the new rules, but at least you will have the opportunity to carryover your unsed portion to the 2014 tax year. Check the IRS Website & for additional information about the new rule changes. Read more

The reason behind the complex tax code

Have you ever wondered how and why the IRS tax code is so complex. With the upcoming presidential elections I found a great article in US News that is worth reading. I also think makes you realize which tax code changes may be coming in 2013. Don't forget to go out an vote. Why politicians don't want to simplify the tax code Read more