If you're a small business owner, you may have nightmares about getting a letter from the IRS saying that your tax return has been selected for an audit. But don't panic. An audit doesn't have to be a scary or stressful experience if you know how to prepare for it. Here are some tips to help you get ready for an IRS audit and avoid any unpleasant surprises.
When you have a significant amount of wealth, managing your finances effectively becomes a crucial part of your overall financial strategy. High net worth individuals and families often have unique financial circumstances that require specialized attention, especially when it comes to taxes. In this blog post, we'll explore some valuable tax tips to help you make the most of your wealth while minimizing your tax liabilities.
Starting a business is an exciting endeavor, but before you dive headfirst into the world of entrepreneurship, there's an essential decision to make: choosing the right business structure. Think of it as the foundation upon which your business will stand. It affects everything from how you pay taxes to your personal liability. It's important to pick the best option for you, so let's take a look at the choices:
Congratulations, lovebirds! Your recent wedding marks the beginning of an incredible adventure together. While the thought of accounting may not sound like the most thrilling aspect of newlywed life, fear not! In this blog post, we'll infuse a dash of fun into the world of finances, providing you with essential accounting tips to ensure your journey as a couple is both prosperous and enjoyable. Let's dive in and discover how to master the art of managing your money while having a blast along the way!
At Warner Tax Group we understand that tax compliance can often feel like a maze of complex rules and deadlines for small businesses like yours. That's why we are here to demystify tax compliance and provide you with practical guidance to stay on top of your tax obligations. In this blog post, we will break down the key aspects of tax compliance and share valuable insights to help you navigate this critical area of your business with ease.
Tax season is finally over! For many people, it’s a big relief to have their taxes filed and off their to-do list. But have you ever wondered what happens next for your finances after tax season ends? This is a great time to evaluate your financial situation and make a plan for the future with the help of your CPA at Warner Tax Group.
Here are five ways Warner Tax Group can help you after tax season:
As a small business owner, you're probably used to wearing many hats. You may handle everything from sales and marketing to customer service and operations. And you may like it that way. However, one area where you may want to consider outsourcing is bookkeeping and accounting.
Outsourcing your bookkeeping and accounting can offer many benefits for your business. Here are just a few:
As a small business owner, you know that taxes can be a complex and overwhelming part of running your business. However, with the right tax planning strategies, you can minimize your tax liability and keep more of your hard-earned money in your pocket. Here are some key strategies to consider:
IRS CHANGES: New law provides additional flexibility for health FSAs and dependent care assistance programs
Alternative minimum tax (AMT)
The alternative minimum tax was originally enacted to ensure that high-income taxpayers pay at least a minimum
amount of tax if they benefit from certain deductions and
other tax preference items.
The AMT tax computation is a parallel system to the regular tax system with its own definitions of income and expenses, rules for income recognition and timing, exemptions, and tax rates. Although every taxpayer is subject to
AMT rules, the additional tax is paid only if the tax computation under AMT rules is higher than the tax computed
under regular rules.
Even though the AMT was originally targeted toward high-income taxpayers, factors, including inflation and
treatment of certain tax credits, can sometimes push lower-income taxpayers into an AMT situation.
Read on to learn about how it works.
How does AMT work?
Certain items called adjustments and preferences are added to or subtracted from federal adjusted gross income reduced by any itemized deductions. An AMT exemption amount is allowed, depending on the taxpayer’s filing status. The AMT tax rate of 26% to 28% is applied to the resulting alternative minimum taxable income. If the resulting tax is greater than regular tax, the difference is added to regular tax on Form 1040.
Example #1: When computed under regular rules, John’s income tax is $4,700. When computed under AMT rules, the tax amount is $3,900. Since his tax computed under AMT rules is less than his tax computed under regular rules, John will not pay any additional amount for AMT.
Example #2: Assume the same facts as Example #1, except when computed under AMT rules, John’s tax amount is $5,100. Since his tax computed under AMT rules is higher than his tax computed under regular rules, John must pay the difference in additional tax. John must report additional AMT tax in the amount of $400.
Download our ATM PDF for more info.
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