Question: Do you enjoy dropping everything for mortgage brokers?
Answer: There are many mortgage brokers out there that think that the world revolves around them and that they deserve the highest priority. The truth is that we get several phone calls everyday from mortgage brokers asking for clarifications, electronic copies, signed statements and many other things. We charge a fee to respond to mortgage broker requests. The fee triples when they use “ASAP”.
Question: Can I deduct my hair and nail costs if my job is dependent upon my image?
Answer: No, those are personal expenses because they are not considered necessary by the IRS.
Question: Can I lease a car for my business and write off the entire value of the car in the first year?
Answer: No, but you might be able to deduct the lease payment each month as a business expense.
Question: I am selling my home, will I have to pay taxes?
Answer: If you have lived in your home 2 out of the last 5 years you might be able to exclude up to $250,000 of profit from the sale of the home if you are single. You might be able to exclude up to $500,000 of profit if you are married. The 2 years do not have to be consecutive and really just needs to be 720 days out of 5 years. There might be taxes due if you ever treated the home as a rental property or used the office in the home deduction.
Question: If I put a magnet on my car with my business logo, can I write off the entire cost of the vehicle.
Answer: Putting a magnet on a vehicle does not make the car fully deductible. Using the vehicle for more than 50% non-commuting business use is what can potentially make the vehicle a business write off.
Question: My neighbor doesn’t pay any taxes, why do I?
Answer: Congratualtions on being more successful than your neighbor. Please keep in mind that no two tax situations are the same. Number of kids, amount of mortgage interest or donations, income earned and taxes withheld make up just some of the vast number of variables that can determine the outcome of a tax return.
Question: I don’t have to report paying my babysitter if I pay her cash under the table, right?
Answer: We don’t encourage paying anyone cash under the table for any reason. Besides, you miss out on the potential child care credit that could be available to you. Furthermore, if you pay your babysitter or nanny more than $1900 in a year, you could have employment tax obligations and filing requirements.
Question: Do I have to keep receipts if I use a credit card?
Answer: Absolutely you do. A credit card statement only shows where you made your purchase. It does not show what was purchased and how much was paid for each item. A charge from Costco could be your family groceries or it could be that new office printer. Only the receipt will clarify that for an inquiring party.
Question: Can I get an electronic copy of my tax documents?
Answer: There is no charge for using the client portal or a request for an electronic copy during your appointment. However, requests after your appointment will incur a charge of $20 per return, additional charges for copies of records and financial statements such as Profit and Loss and Balance sheets.
Question: I received a letter from the IRS or state tax commission, what should I do?
Answer: Upload a copy to our client portal or drop off a copy at the office.