Advisory Tax Service, Inc.
Frequently Asked Questions - WHAT TO SAVE FOR YOUR ACCOUNTANT OR TAX PRACTITIONER? Whether you own a home or rent, have small children or not you should be aware of your tax structure. It is not to late to tax plan for the 2000 tax year. The would haves, could haves, and should haves are about to start. If you find yourself saying any of the above in the past you have probably have not planned your taxes well if enough to limit your tax liability effectively. Now it becomes our job to limit our tax liability. What should be saved? What should be given to your accountant? Since the barn door is about to close for 2000, the animals have all left, it is now hard to get the animals back into the barn It is to easy to say give the accountant everything. Most accountants charge for their time. Their time is your money. I have compiled a list of items to bring in a neat an organized way to be less taxing on both you and your accountant. New Home owners: 1) Bring the closing statement
from the purchase of the house (HUD 1) Charitable Deductions: Charity is not fully deductible either. Cash donations are deductible upto 50% of the earnings of the contributor. 30% of the earnings for gifts of appreciable property. Bring your accountant the name, address and the receipt of the charitable organization. Real Estate Sales / Small Business There are a whole host of expenses to gather. I recommend Quickbooks or Quicken. Gather your expenses in such a way that they are totaled and organized under certain expense categories. Such as Advertising, Auto, Bank Charges, Computer Supplies, Dive Equipment, Dues & Subscriptions, Equipment, Fishing Gear, Foul Weather Gear, Freight, Gifts, Insurance, Licenses and Fees, Meals and Entertainment, Office, Postage, Rent, Supplies, Travel, Uniforms, etc. Of course there are certain rules that limit some of the above categories. For instance, Meals and entertainment are generally limited to 50%, in certain situations 100% may be deducted. Gifts are limited to $25 per gift. Corporations The same information is needed as far as expenses are concerned, but you should also supply your accountant with copies of your corporate bank statements and bank reconciliations. Indicating which deposits are income, tips, loans, or gifts. Otherwise the accountant could mistakenly treat all deposits as income. Employees who travel for work Employees business expenses are subject to all the above expenses categories and limitations. However, employees must subtract what they were reimbursed by their employer. Certain per diem allowances can apply as well. Parents with small children Day care expenses are a nonrefundable credit. You will need to provide your accountant with the total amount you paid, the day care provider's address, and Federal Identification Number. Credits are dollar for dollar reductions in your tax liability Earned Income Credit This credit is a refundable credit. Meaning that even if your tax liability becomes to zero you will get additional money from the IRS. This is one of the ways that our government giveth to the needy. To qualify you must have earned wages. You must provide your accountant with your wage statements (Ex W-2) and your child's Social Security Number. Of course these are general rules. Starting with some organized and generalized information for some general deductions that effect most families you can limit your tax liability and maximize your tax savings Failing to plan is planning to fail. If you have any questions please either contact Eric Yankwitt, Advisory Tax Service, Inc. 1975 E Sunrise Blvd. Fifth Floor, Ft. Lauderdale, Florida 33304, 954-763-2829
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Yacht
Links www.yachtworld.com/SuperYacht/ The Super Yacht Society .
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