Category: QuickBooks

What Do You Know About Capital Gains & Losses?

Posted on by Lorrie Reid

A capital asset can include inherited property or property someone owns for personal use or as an investment. When you sell a capital asset, the sale will result in either a capital gain or loss. Here’s a great article sent to us by the IRS.

Helpful facts: Capital Gains & Losses According to the IRS:

~Capital Assets: These include, home, car, stocks and bonds.

~Gains & Losses: A basis is what you originally paid for your asset. The Capital gain or loss is the difference between the basis and the amount you get when you sell the asset. For more details about inherited property, see IRS Publications 544, 550, & 551.

~Net Investment Income Tax: Taxpayers must include all capital gains in their income. If your income was above a certain amount, it may be subject to Net Investment Income. For more details on this, visit IRS.gov.

~Deductible Losses: You can deduct capital losses on the sale of investment property. You cannot deduct losses on the sale of a property you have for personal use.

~Limit on Losses: If your capital loss is more than your gains, you may deduct the difference on your tax return. Loss is limited to $3,000/yr, or $1,500 if married but filing separately.

~Carryover Losses: If your total net capital loss is more than the limit mentioned above, you may carry it over to next year’s tax return.

~Long & Short Term: If you hold the property for 1 year or less, it is short-term.

~Net Capital Gain: Ultimately, if your gains are more than your losses, you have a net capital gain. If your long-term gains are more than your long-term losses, the difference is a net long-term capital gain. If the net long-term capital gain is more than the short-term capital loss, you have a net capital gain.

~Tax Rate: This depends on your income. The Max on a net capital gain is 20%. Most fall between a 0%-15%. However, a 25%-28% can apply to certain types of net capital gain.

~Forms to File: You will often need to file Form 8949, and Schedule D with your tax return. For more on this, visit the Schedule D Instructions.

It is important to keep a copy of your tax returns. If you are using a software product for the first time, you may be required to include your Adjusted Gross Income from the prior year’s return to confirm your identity. To learn more about this, or how to electronically sign a tax return, visit this Validation Info Page.

Business Resource Partners has tax professionals on staff who know the ins and outs of tax prep requirements, we would be happy to assist you in your 2016 and future tax needs!

Call (321) 236-2771 or visit us at 310 Almond Street Clermont, FL 34711.

IRS Warns of Video Relay Scam Targeting Deaf & Hearing Impaired

Posted on by Lorrie Reid

We’ve uncovered some IRS scams & myths this tax season, it’s amazing what others will come up with in attempt to steal money. Today, we are covering Video Relay Scam (VRS) that target deaf and hard of hearing.

Video Relay Services are oftentimes used as a video telecommunication service that allows individuals to communicate over video telephones with hearing people in real time, via a sign language interpreter. The problem is VRS interpreters do not scan calls for validity, so it is up to you to always confirm that the person calling is who they say they are.

If you or someone you know is deaf or hard of hearing receives a VRS call claiming to be the IRS, there are a few things you need to know:

  1. The IRS Will Never:

~Demand immediate payments or specific ways on how to pay (wire transfer, prepaid card, etc). The IRS will not call about taxes owed without first mailing an official letter.

~Threaten to call local police if you do not pay immediately.

~Demand payment without the opportunity to ask questions or appeal amount charged.

~Ask for credit or debit card numbers over the phone.

   2. Receive a Suspicious Call or Know Someone Who Did?

~If you or someone you know is deaf or hard of hearing, you may call the IRS at (800) 829-1040 through VRS. They will be able to answer any questions including payment issues.

~If you received a call but know you don’t owe money and have not received an official IRS letter, report the incident right away. You can call the Treasury Inspector at (800) 366-4484.

~You may also file a complaint using the FTC Complaint Assistant. If it involves impersonating the IRS, include the phrase “IRS Telephone Scam” in the notes.

Our team at Business Resource Partners is happy to help with your tax preparation! Mythili, our Enrolled Agent, will be able to directly represent you to the IRS if any issues arise. For a full list of our awesome staff, visit our About Us section.

Call us at (321) 236-2771 to schedule an appointment, or visit us at 310 Almond Street Clermont FL, 34711.

Four Common Myths Involving Tax Returns According to the IRS

Posted on by Lorrie Reid

If you’ve logged on to any sort of social media lately, you may have seen posts, articles, blogs, or videos about tax returns and common actions you can take to “get your refund sooner”, “get more in return”, etc. These claims are myths regarding tax returns. We mentioned some things to look out for when choosing a tax preparer in our previous blog, now we tackle some myths behind your returns.

Here are four common myths:

  1. Delayed Refunds

Per the IRS website, over 90% of returns are issued in less than 21 days! There are always exceptions to this which can include, Earned Income Tax Credit (EITC), or Additional Child Tax Credit (ACTC). However, these are usually only held until mid-February. Other reasons for any delays are simply for security reasons such as building of security to protect from identity theft and refund fraud.

  1. If I call the IRS or my Tax Preparer, I’ll get an official refund date.

The best way to stay updated on the status of your return is to access “Where’s My Refund?”, or through your Mobile App.

  1. If I order a Tax Transcript, I’ll know my refund date for sure.

The information on a transcript does not reflect the timing on your refund. You can refer to this transcript for mortgages, student and small business loan applications, and help with tax prep. For a status update, always refer to “Where’s My Refund?”.

  1. “Where’s My Refund” is wrong, it doesn’t have my deposit date.

Projected deposit dates for EITC & ACTC are a few days after Feb. 15 and they will not see a refund date until then. Refunds will not start arriving into cards or accounts until Feb. 27 if there are no issues with the processing and banking. Delays can sometimes depend on banks and the processing or large quantities of people receiving refunds. Keep in mind that President’s Day weekend may also cause delays because some banks to not process payments on holidays and weekends.

For this full article as well as many great resources from the IRS, please visit the IRS Website.

As always, Business Resource Partners is here to assist with all of your tax prep needs! We have a staff that is more than qualified to prepare your 2016 taxes and we would love to service you or your business.

Please call us at (321) 236-2771 or visit us at 310 Almond Street Clermont FL 34711.

What to Be Aware of When Choosing a Tax Preparer:

Posted on by Lorrie Reid

Image result for Tax SeasonWith tax season already upon us, it is important to know who is preparing your taxes and what their qualifications are. They are responsible for your information and it is important to be conscious of the potential threats presented this time of year.

So, what are some things to consider?

  1. Qualifications: There are different qualifications depending on your needs. These include

Attorneys, Certified Public Accountants (CPAs), Enrolled Agents, Annual Filing Season Program Participants, Enrolled Retirement Plan Agents, and Enrolled Actuaries.

For more information on this, visit this page which breaks down each qualification and can help you better determine your needs this year.

  1. Check the History: Check the preparer’s license status as well as any disciplinary actions. For CPAs, check the State Board of Accountancy. For Attorneys, check the State Bar Association. For Enrolled Agents, you can go to IRS.gov or email [email protected] with the first and last name of the agent, a complete address if it is available, and the Enrolled Agent Number is available. It is recommended to include as much information as possible. For more information on this, visit the verification page.
  1. Ask about Service Fees: Avoid preparers who base their price on the percentage of your return or claim they can get you a bigger refund than the competition. Do not give them any tax documents or anything that would include your social security number.
  1. Ask for E-filing: Make sure your preparer offers IRS e-file. The IRS has processed billions of e-files successfully and there is no reason why this should be impossible.
  1. Make Sure the Preparer is Available to You: You might need to contact your preparer after the April 18th due date. Don’t hire someone who is constantly on the move and will be difficult to get in touch with.
  1. Provide Records & Receipts: A good preparer will want to have all the necessary information in order to properly file your tax return such as total income, tax deductions, credits, etc. For example, do not rely on someone who only wants your last pay stub instead of a From W-2. This is against IRS e-filing rules.
  1. Never Sign a Blank Return: This may sound like a no brainer, but it is worth mentioning. Do not use a preparer who asks you to sign a blank return.
  1. Review Before Signing: If something is not making sense, ASK. You should feel completely informed and comfortable with any document you are signing. Always double check the bank Account and Routing number to make sure that it is yours. Always keep copies of everything.
  1. Make Sure Your Preparer signs and includes their PTIN: This is the  Preparer Tax Identification Number and they must include this in the document by law.
  1. Report any abusive behavior to IRS: Most preparers will be honest and provide excellent service, however, some are dishonest. To report any abusive or fraudulent actions, use Form 14157. If you suspect your return was changed without your consent, fill From 14157-A. These are available on irs.gov any time.

As always, if you need any help with Tax Preparation and filing, Business Resource Partners is always here to help! We have our Accountant Michael, our Enrolled Agent Mythili, and our owner Lorrie who is a participant in the Annual Filing Season Program. Our front desk ladies Stephanie and Andrea would be happy to schedule appointments for your needs.Please contact us at (352) 236-2771 or visit us at 310 Almond Street Clermont FL, 34711.

Great News! Enhanced Services at Business Resource Partners!

Posted on by Lorrie Reid

We have some exciting news to share with you!

We are now offering both business and personal tax return preparation. We have extended our business hours on Tuesday through Friday until 7:30pm, and Saturdays from 9am-2pm. We are happy to offer other hours by appointment to accommodate your schedule.

Our team of experts is happy to help with all of your tax needs. Our dedicated staff speak several different languages including Spanish and German. We are looking forward to assisting you with all personal and business tax returns.

Our team of professionals represent many facets of Accounting:

~Lorrie Reid, our owner and founder, has completed the Annual Filing Season Program, a brand new certification from the IRS

~Michael Jacobson holds a Masters Degree in Accounting

~Mythili Richards, our IRS Enrolled Agent, is certified to represent you to the IRS in the event of a tax issue

~Stephanie Rubin is our Payroll Specialist/Office Manager

~Andrea Gregori is our multi-talented Administrative Assistant

We look forward to working with you!

Call us at (321) 236-2771 for further information and appointments, or visit us at 310 Almond Street, Clermont FL 34711.